When they projected $40B a few years ago I thought they were nuts. Then I heard $50B and thought these guys are dunk. Now it turns out that they are actually en route exceeding even that forecast, making $52B!
This in spite of the dollars fall is quite breathtaking!
Well done India!
Jai Bharath!
Sri Rama Jayam!
India’s Computer-Services Revenue to Exceed Earlier Forecast
Feb. 11 (Bloomberg) – India’s computer-services revenue will beat an industry forecast this fiscal year as domestic clients such as Vodafone Group Plc’s local unit awarded more contracts, helping reduce reliance on the U.S.
Revenue from managing computer networks and operating call centers for U.S., European and Asian clients from India will climb 32 percent to $52 billion in the year ending March 31, the National Association of Software and Service Companies said in a statement today. The revenue would exceed a July forecast of $50 billion after orders from Indian clients surpassed estimates.
International Business Machines Corp., the world’s largest provider of computer services, and rivals are winning more orders from India, as well as filling more overseas contracts from the South Asian nation to pare costs. India may exceed a $60 billion- target for software-services exports by March 2010, Nasscom said, even as growth in global spending is forecast to slow this year.
India’s home market will likely generate $11.7 billion in revenue, excluding sales of hardware, for the year ending March 31, the industry’s lobbying group said. That would surpass an August prediction for $10 billion, and help reduce the computer- services companies’ dependence on the U.S., the world’s largest market for computer services.
Contracts awarded by Indian companies last year included mobile-phone operator Idea Cellular Ltd.'s $800 million order to Armonk, New York-based IBM. Tata Consultancy Services Ltd., India’s largest software exporter, won a contract worth $140 million from Bharat Sanchar Nigam Ltd., and No. 3 ranked Wipro Ltd. got an order worth as much as $600 million from Aircel Ltd.
Exports, excluding sales of hardware, will rise to $40.3 billion, according to Nasscom’s projections today, almost matching the previous estimate.
Tata Consultancy, based in Mumbai, gained 0.4 percent by the close of trading on the Bombay Stock Exchange today, compared with a 4.8 percent decline in India’s benchmark Sensitive Index. Bangalore-based Infosys, India’s second-largest software-services provider, climbed 0.5 percent. Satyam Computer Services Ltd., ranked No. 4, gained 3.4 percent.
India’s computer-services industry as a whole will account for 5.5 percent of the nation’s gross domestic product for the current fiscal year, up from 1.2 percent for fiscal 1998, as the sector, including sales of hardware, will probably grow 33 percent to $64 billion, Nasscom said.
U.S. information-technology buyers, concerned that the economy is slumping, may spend less than projected this year, reducing worldwide demand for computers, software and services, Forrester Research Inc. said today in a report. U.S. spending will climb 2.8 percent to $552 billion, missing an earlier forecast for 4.6 percent growth, the researcher said today.
Global spending will rise 6 percent to $1.7 trillion, instead of the 9 percent originally predicted, Cambridge, Massachusetts-Forrester said.