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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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.
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“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.
Graphics by Ahmed Raza Khan / Mint