Software and services revenues to grow 24 percent

Mumbai

July 10, 2008

Nasscom announced the findings of its annual survey on the performance of the
Indian software and services sector (excluding hardware) for FY 07-08 and
outlook for FY 08-09.

According to the annual Nasscom survey, the Indian IT-BPO industry (including
domestic market) recorded an overall growth of 28 percent clocking revenues of
$52 billion in FY 07-08 up from $39.6 billion in FY 06-07. The software and
services exports segment grew by 29 percent to register revenues of $40.4
billion in FY 07-08, up from

$31.4 billion in FY 06-07. The domestic segment grew by 26 (in INR) percent
to register revenues of $11.6 billion in FY 07-08.

Within the export segment, IT services exports have grown by 28 percent (in
USD) to clock revenues of $23.1 billion; while BPO exports are up by 30 percent
(in USD) registering revenues of $10.9 billion. Engineering services and
products exports clocked revenues of $6.4 billion, growing at 29 percent (in USD)
in FY 07-08.

The survey also projects that the overall software and services revenues will
grow by around 21-24 percent (currency adjusted) to touch around $50 billion in
FY 08-09.

Speaking at the conference, Som Mittal, President, Nasscom said, “The
Indian IT-BPO industry's resilience is reflected in its FY 07-08 performance,
with 28.2 percent overall growth rate and next year's projected growth between
21-24 percent. Given that we are well on our way to achieve the target of $60
billion in exports by FY 09-10, the industry is now focusing on improving
productivity, efficiency, as well as opening up new markets and services”.

He further added, “The next decade offers opportunities and challenges
which will require new business models and the industry dynamics will also see
significant changes leading to a many new industry drivers and enablers, and we
will need to prepare ourselves for these. Nasscom is developing a long term
vision for 2020, to chart out the roadmap for all stakeholders and help them tap
into this opportunity.”