India's Software Outsourcing to Draw $17B

By S. SRINIVASAN, buttociated Press Writer

Friday, February 25, 2005

(02-25) 08:11 PST BANGALORE, India (AP) --

India's export revenues from software outsourcing have exceeded targets and will reach $17.3 billion in the fiscal year ending March 2005, a key trade body said Friday.

Also, the number of people employed in India's outsourcing industry has reached 1 million for the first time, the National buttociation of Software and Service Companies, or NbuttCOM, said.

"Our exports gained momentum this year, with more companies realizing the value of global sourcing," said the buttociation's president, Kiran Karnik.

In the year to March 2004, India's software exports stood at $12.8 billion and the industry employed 770,000 people, Karnik said.

Industry leaders said India made impressive gains in other technology areas as well.

Mobile and fixed-line phone subscriptions are expected to exceed 23 million in the fiscal year ending in March, taking the total number of users in India to 99 million, according to the Telecom Regulatory Authority of India, the country's telecommunications regulator.

A year earlier, the total number of users in India was 76 million, with 20 million new mobile and fixed line phone subscriptions sold, the regulatory authority said.

A record 4 million computers and 1.2 million Internet connections were likely to be sold in the fiscal year ending in March this year, said Vinnie Mehta, executive director of Manufacturers' buttociation of Information Technology.

"We have done quite well this year. Growth is happening absolutely in all sectors," Mehta said.

The value of India's computer hardware industry is estimated to be $6 billion, including exports of $700 million, according to NbuttCOM.