Export of Software and Services

8/8/2019 Export of Software and Services

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EXPORT OFEXPORT OFSOFTWARE ANDSOFTWARE AND

SERVICESSERVICES

EXPORT OFEXPORT OFSOFTWARE ANDSOFTWARE AND

SERVICESSERVICES


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OVERVIEW In recent times , SoftwareIn recent times , Software development anddevelopment and

information technology enabled services (ITeS)information technology enabled services (ITeS)including business process outsourcing (BPO)/including business process outsourcing (BPO)/

knowledge process outsourcing services (KPO)knowledge process outsourcing services (KPO)industry in India has emerged as one of the mostindustry in India has emerged as one of the mostdynamic and vibrant sectors in Indias economy.dynamic and vibrant sectors in Indias economy.With a small beginning in early 80s, it has nowWith a small beginning in early 80s, it has nowgrown into a broad based comprehensive industry.grown into a broad based comprehensive industry.

The foreign Director Investment (FDI) toThe foreign Director Investment (FDI) to

supplement domestic investment for achieving asupplement domestic investment for achieving aquantum jump in growth rate is now an integralquantum jump in growth rate is now an integralpart of Government of India policy initiativespart of Government of India policy initiatives


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OVERVIEW Today, Indias competence in IT,

more significantly in computer softwareand information technology enabled

services recognised globally. Indian ITfirms and IT professionals have wonworld-wide recognition in terms of theirtechnical competence, domain knowledge,experience and expertise for offering

quality IT services, and their exposure toworking on various platforms and systems.


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STRENGTHS OF

INDIAN IT INDUSTRY One of the largest pool of technically qualified highclass IT manpower

Enormous skilled human resource compared todeveloped countries leading to lower manpowercost nearly one tenth of those in developed nations,thus giving India a comparative advantage.

Offers a wide range of services from support / dataprocessing to sophisticated software systems etc.

Rich experience of working with large globalcompanies and enjoy high credibility Expertise on a wide variety of platforms Accommodating nature of Indian IT workforce


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PRODUCTION Production of Computer Software and Services

during the year 2008-09 is estimated to be Rs.285064 crore (US$ 61.98 billion) registering agrowth of 28.40 percent (12.40 percent in US$terms) over the year 2007-08 when the totalproduction of Computer software / Services wasestimated to be Rs. 222010 crore (US$ 55.14billion).

Production of Computer Software / Services has

been growing at an annual average growth rate of30.87 percent during the past five years.


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SHARE IN GDP

Computer Software/Servicesproduction accounts for a share of

5.78 percent in Indias GDP atcurrent prices during the year 2008-09.


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S I S AAND SERVICES

INDUSTRY During the year 2008-09 Indias domestic

computer software / services market isestimated to be Rs. 57230 crore (US$12444 million) registering a growth of21.74 percent (6.57 percent in US$ terms)over the year 2007-08 when the domesticsoftware / services industry was

estimated at Rs. 47010 crore (US$ 11676million).


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Production

2007-08 2008-09 % Growth

Rs. Cr. US$ Mln. Rs. Cr. US$ Mln. Rs. Term US$ Term

Domestic 47010 11676.60 57230 12444.01 21.74 6.57

Software forexport

175000 43467.46 227834 49539.90 30.19 13.97

Total 222010 55144.06 285064 61983.91 28.40 12.40


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EXPORT OF COMPUTERSOFTWARE / SERVICES

INCLUDING ITeS / BPO Out of the total production

of computer software /

services 79.92 percent is exportedand only 20.08 percent isconsumed by the domestic market.


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EXPORT OF COMPUTER

SOFTWARE / SERVICES Export of Computer Software /

Services (including ITeS / BPO)registered a growth of 30 percent (14

percent in US$ terms) during the year2008-09 over the year 2007-08. In valueterms, export of this sector during 2008-09 is estimated to be Rs. 227834 crore(US$ 49.54 billion) up from Rs. 175000

crore ( US$ 43.46 billion) estimated in theyear 2007-08.


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EXPORT OF IT SOFTWARE

/SERVICES Export of IT Software / Services

estimated at Rs. 164828 crore (US$ 35.84

billion) during 2008-09 registered agrowth of 31 percent (15 percent in US$terms) over the year 2007-08 when theexport of IT software and services was

estimated at Rs. 125500 crore (US$ 31.17billion).


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MAJOR DESTINATIONS FOR SOFTWARE

AND SERVICES EXPORTS DURING 2008-09


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MAJOR DESTINATIONS FOR

EXPORTS North America remains the top

destination for Indias export of Computer

Software / Services during the year2008-09

Export to EU Countries registered agrowth of 48.72 percent (30.19 percent in

US$ terms) during the year 2008-09.


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MAJOR DESTINATIONS FOR

EXPORTS Middle East countries have emerged as

3rd top destination for Indias softwareand services exports during the year2008-09

There has been decline in export toSingapore, Hong Kong & other South Asiancountries, Japan, Korea and other Far East

countries and Latin America during theyear 2008-09.


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Why INDIAWhy INDIA ??Why INDIAWhy INDIA ??


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Indian Players TCS World leading IT consulting services and business process outsourcing company

Infosys Provides consulting and ITservices to clients globally as partners

Wipro Serves over 300 global leaders and is

worlds first PCMM, CMMi and CMM Level 5 company


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The India Advantage Quality manpower

Pro active policy

framework

Specialised

Organisations andfacilities

State-of-the-artinfrastructure

High qualityservices


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The Intellectual

Advantage India is today a mature region

for IT offshore work


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The Knowledge

Advantage Large pool of highly talentedsoftware professionals

Highly qualified pool of ITprofessionals


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The Cost Advantage

Costs for offshore work 30-50%

lower than in US/Europe


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The Infrastructure

Advantage Standardisation Testing and Quality

Certification (STQC) programme:-One-stop solution to all quality requirements ofelectronics industry

Software Technology Parks:-Exemptionfrom local duties and taxes


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The Policy Advantage IT Act 2000 USD 2580 mn to be spent on e-

Governance initiatives Priority sector status given by banks Export processing zones established

487 information communicationcentres


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