India will occupy top slot in IT services by 2020

Special Correspondent

It will capture 6 p.c. of global share in IT software and services, says buttocham

NEW DELHI: "India will be well-poised to double its present market share and capture six per cent share of the global pie in services and IT software by 2008-09," according to the findings of a study on `India's cutting edge in services' conducted by the buttociated Chambers of Commerce and Industry of India (buttocham).

Surplus professionals

Alongside, India will occupy a leading position in providing services to developed economies of the European Union and other nations by 2020. For, by then, it is estimated that the country will have a surplus of 47 million professionals in the services and IT sector to be gainfully used by the recipient countries, the study has said. The buttocham study also reveals that in the export of services and IT software, India will face compebreastion mainly from the smaller countries such as Pakistan, Bangladesh, Indonesia and Egypt, which it will conveniently take on as Indians will be enjoying a compebreastive edge in providing knowledge-driven services like IT and research and development (R&D).

Releasing the study, the Chamber president, Mahendra K. Sanghi, pointed out that with the increase in offshore penetration and hike in the annual growth rate to 45 per cent from the current 30 per cent in export of IT and IT-enabled services (ITeS), the total exports will exceed $50 billion by 2008-09.

Software exports

Software and services exports, Mr. Sanghi said, touched $17.2 billion in 2004-05 with an annual growth rate of over 30 per cent. From a relatively low share of 10.02 per cent in 1995-96, exports of software services accounted for about 48.9 per cent of the country's total services exports in 2003-04.

The trend highlighted the country's growing compebreastive advantage in production and exports of such services.

Working age group

By 2020, the study has pointed out, most of the developed countries will have problems in finding people in the working age group owing to the decline in birth rates.

The EU is so concerned over the economic impact of the demographic decline and ageing that the European Commission has highlighted the need to review the immigration policies for the longer term.

Between 2010 and 2030, at current immigration flows, the decline in the EU-25's working age population will entail a significant fall in the number of employed people and this will have a major impact on the overall economic growth, the functioning of the internal market and the compebreastiveness of EU enterprises.