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The future is IT
Kiran Karnik
The Times of India
It has been an outstanding year for the Indian IT industry. The financial year clocked the highest growth of the decade (34%) in exports, which totalled US $17.2 billion. The closing days of the year brought fresh cheer. The NASSCOM McKinsey Report 2005 revealed that if the present looks good, the future seems even brighter. It sees the Indian IT industry becoming as important as Japan's automobile industry, French fashion or Saudi petroleum. At present, India's share in the global software industry is about 3%. We dominate the offshoring market, with 65% and 46% share in global IT and BPO respectively. The report estimates the global offshoring market is almost ten times the present size. Keeping this in mind, and looking at other aspects of demand and supply, the report concludes that the Indian IT industry can generate export revenues of $60 billion in 2010.
What would this mean? In terms of employment, the number of IT professionals would grow from 700,000 to 2.3 million in five years. Including indirect and spin-off employment, this sector would provide jobs to about 9 million people. It would constitute 7% of India's GDP, as against 1% at the start of the decade, and would account for as much as 31% of India’s total exports.
Equally exciting are the possibilities on the domestic front. As the use of IT within the country grows, it will help to make other sectors more productive. With growing applications in rural areas and in e-governance, IT can help to bridge the urban-rural and socio-economic divides. Al this, will not happen on its own. While there is tremendous momentum, the road ahead has many pitfalls. As regards exports, the report has highlighted the need for action on four fronts.
