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IT services sector to miss ‘10 export target: Nasscom

IT services sector to miss ‘10 export target: Nasscom
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First Published: Tue, Apr 21 2009. 11 59 PM IST

Updated: Tue, Apr 21 2009. 11 59 PM IST
India’s information technology services industry is likely to miss its target of $60 billion, or Rs3 trillion at today’s currency rates, worth of exports by 2010 by at least three to four quarters, a report by lobby group National Association of Software and Services Companies, or Nasscom, and management consulting firm McKinsey and Co. released on Tuesday said.
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An unprecedented slowdown in the global demand, especially from recession-hit US and Europe, has led to a scaling back of the expectation.
Still, the report projected a bigger addressable market as the benefits of outsourcing spread to new industries and hitherto untapped areas such as government services and utilities.
Also See Currently untapped customer segments will drive up to 80% of incremental growth by 2020 (Graphic)
“Given the current pace of reforms and expected constrains in talent and infrastructure supply, the exports component of the Indian industry is expected to reach $175 billion in revenues by 2020 (showing a decline in market share to 40%),” the report says.
“Focused initiatives and innovation-led growth can lead to additional revenues of up to $135 billion.” Demand from India, or domestic revnues, will contribute $50 billion in revenues, the report added.
shauvik.g@livemint.com
Graphics by Ahmed Raza Khan / Mint
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First Published: Tue, Apr 21 2009. 11 59 PM IST