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Last Updated: Thursday, 2 June, 2005, 15:04 GMT 16:04 UK
India extends IT outsourcing boom
Indian software company
India controls 44% of the global offshore outsourcing market
Exports of Indian software and services have grown by more than a third in the past year, with further rapid expansion predicted for the coming year.

The National Association of Software Companies (Nasscom) said technology and IT services exports were worth $17.2bn (9.5bn) in the year to March 2005.

It predicted that the rise, of 34.5%, was set to repeat in the coming year.

Nasscom president Kiran Karnik also said that companies were focusing more on sales at home as well as abroad.

Predicting a 30% expansion of exports in the next 12 months to $22.5bn, Mr Karnik said the organisation was aiming to encourage more collaboration between Indian firms.

There are concerns about creeping protectionism, sometimes by law
Kiran Karnik, Nasscom

Sharing ideas, information and best practices would help drive the domestic market help give impetus to the domestic market.

"Extensive use of IT within the country can result in great economic benefit, efficient and transparent governance, and empowerment of the disadvantaged," he added.

Domestic ambitions aside, Nasscom put India's share of the global offshore outsourcing market for software and back-office services at 44%.

Nasscom noted that exports had gone up despite both Democrats and Republicans speaking out against outsourcing during the US presidential election campaign.

The US accounts for 68% of Indian exports.

Trade measures

Mr Karnik pointed out that India's IT industry, famous for its low cost, was seeking a bigger proportion of more profitable high-skilled engineering and research and development work.

However, he warned that India was concerned about trade barriers.

"There are concerns about creeping protectionism, sometimes by law," he said.

On Wednesday India's trade minister, Kamal Nath, said they were seeking a new trade deal to prevent the US and other countries introducing measures to stop companies outsourcing.

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