Indian BPO exports blazing

Source: IRIS (22 August 2006)

India has been witnessing a boom of sorts in the information technologies-enabled services (ITES) sector.

Jairam Ramesh, Minister of State for Commerce & Industry gave this information in a written reply to a question raised by Jyotiraditya M. Scindia in Lok Sabha today.

The exports for 2005-2006 have been USD 6.3 billion, as compared with USD 5.2 billion for 2004-2005.

The government has taken various steps to promote the growth of IT software and services industry, such as automatic approvals for all foreign direct investment proposals relating to IT sector, reduction in peak customs rates, abolition of customs duty on Information Technology agreement (ITA-1) items, setting up of Special Economic Zones (SEZs), allowing income-tax exemption on export profits to software technology parks (STPs)/export oriented units (EOUs), etc.

As per NASSCOM, the share of large contracts won by Indian service providers has increased from 1% in 2003 to 5% in the first half of 2006. Some of the recent big deals have been won by Hindustan Computers Limited, Infosys, Satyam, TCS and Wipro.