IT, ITES exports to reach $60 bln by 2010

A new NASSCOM-McKinsey Report 2005 has set the agenda for the IT and BPO industry. The NASSCOM-McKinsey Report 2005 suggests that the total addressable market for global offshoring is approximately $300 billion, of which $110 billion will be offshored by 2010. The report says that India has the potential to capture more than 50% of this opportunity and generate export revenues of approximately $60 billion by growing at 25% year-on-year till 2010. The figure of $60 billion does not include exports of software products. If the projections come true, the IT industry’s contribution to the GDP of India would reach around 7%. At present, the sector contributes about 3% to the GDP. But the report has cautioned that country would have to address critical issues such as a potential shortage of 500,000 qualified workforce and ramp up the existing infrastructure to sustain its edge over competing low-cost destinations, including China.
The National Association of Software and Service Companies (NASSCOM), the 900-member industry body representative of India 's IT software and services industry, had commissioned & Company, the leading management consulting firm, to assesses the evolving landscape, lay out the strategic and competitive factors that will influence India’s global standing in the IT and BPO industries, and describe the growth opportunities that companies should explore.
The Nasscom-McKinsey Report 2005, however, has lowered the forecast for the Indian IT and IT enabled services exports for 2008 to $50 billion from $54 billion it projected in its 2002 report.

(Ref: NASSCOM press release, December 12, 2005)

$2.2 bn invested through private equity in 2005

The private equity investments in Indian companies has jumped 37.5% from $1.6 billion to $2.2 billion, says a news report published in the Business Standard. The report highlights that IT & ITES industry continued to be the favorite of private equity and venture capital firms, as it attracted about $457 million investment across 42 deals.

(Ref: Business standard, December 30, 2005)

IT-ITeS revenues to clock $28 bn by March: NASSCOM

NASSCOM, the 900 member industry body representing software and services segment, has estimated that Indian IT and ITeS (information technology and IT enabled services) industry may clock $28 billion in revenues by March 2006 against $22 billion earned in the fiscal 2005 from exports and domestic markets.

(Ref: Financial Express, December 27, 2005)

Mysore emerging second IT hub

Mysore, the historical Karnataka city famous as the City of Palaces and only 140 kilometers away from Bangalore, seems to be gearing up to find a prominent place in the IT map of India. Year 2006 is expected to see 24 companies investing over $200 million (Rs. 1,000 crore) creating around 20,000 jobs and taking exports from the present over $89 million (Rs. 400 crore) to over $200 million (Rs. 1,000 crore) by March 2007.

(Ref: Business standard, December 23, 2005)

DoT plans fewer STD codes for easy STD dialing

India may soon have only 322 STD (Subscriber Trunk Dialing) codes instead of the current 2645 STD codes. The Department of Telecom (DoT) is considering this move in order to simplify the dialing process for long distance calls in the country.

(Ref: Zeenews.com, December 23, 2005)

BSNL, MTNL to invest in Wi-max infrastructure

Government owned telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) are planning to invest about $625,000 in creating Wi-Max infrastructure to provide high-speed wireless broadband services. Minister for Communications and Information Technology Dayanidhi Maran told Rajya Sabha, the upper house of the Indian Parliament, that BSNL is planning to invest about $400,000 to offer Wi-Max services in 10 cities, while MTNL that operates in Delhi and Mumbai will invest the remaining amount.

(Ref: Zeenews.com, December 22, 2005)

Maran sees overseas funds boom in phones, IT

The Communication and IT Minister Dayanidhi Maran expects the planned foreign investment in India’s telecom and IT sectors to reach $22 billion in the year 2006. If the expectations of the minister turn into reality, the amount will be more than double of the planned foreign investment of $9 billion in the year 2005. Maran has also expressed the hope that the number of net additions in the mobile subscriber base may hit 4-5 million a month in the early 2006.

(Ref: CIOL.com, December 21, 2005)

India is witnessing a mobile revolution, but the growth of basic telephone services has suffered in the process. In the first 10 months of the year 2005, the subscribers of the government owned companies BSNL and MTNL surrendered 2.45 million landlines. On the other hand, the net addition in the total mobile subscriber base was 3.5 million in November 2005 alone. But now, BSNL has tried to arrest the trend by reducing the monthly rental for landlines by 28% to Rs. 180 ($3.98).

(Ref: Financial Express, December 15, 2005)