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Software/IT Services/Business Process Outsourcing
India IT Industry Sector Performance, 2004–08 ($ billions, U.S.)
2004 2005 2006 2007 2008*
IT Services 10.4 13.5 17.8 23.5 35.5
Exports 7.3 10.0 13.3 18.0 26.9
Domestic 3.1 3.5 4.5 .5 8.6
BPO Services 3.4 5.2 7.2 9.5 14.8
Exports 3.1 4.6 6.3 8.4 12.8
Domestic 0.3 0.6 0.9 1.1 2.0
Engineering/R&D, Software 2.9 3.8 5.3 6.5 9.6
Exports 2.5 3.1 4.0 4.9 7.3
Domestic 0.4 0.7 1.3 1.6 2.3
Total Software 16.7 22.5 30.3 39.5 59.9
Exports 12.9 17.7 23.6 31.3 47.0
Domestic 3.8 4.8 6.7 8.2 12.9
Hardware 5.0 5.6 7.1 8.5 11.7
Exports n/a 0.5 0.6 0.5 ---
Domestic n/a 5.1 6.5 8.0 11.7
Total IT Industry 21.6 28.2 37.4 48.0 71.7.0
*2008 figures are estimates.
Note: Domestic numbers were reported in rupees in the source material and have been converted to
dollars using an exchange rate of 44 rupees to the dollar.
Source: NASSCOM FY 2008-09 Report, Feb. 2009
India’s IT industry employed 1.1 million professionals in FY 2004–05; NASSCOM places employment
in the sector at about 2.3 million as of February 2009. (While these are large numbers
that represent important opportunities for young Indian professionals, it should be noted that
they still account for only a small fraction of India’s population and employment base.)
Where IT-BPO services comprised 1.2% of India GDP in 1998, the portion is now estimated by
NASSCOM at 5.8%. The industry grew by 28% in 2007 and by another 33% in fiscal 2008,
reaching total revenues of $64 billion—roughly $40 billion in exports and $23 billion in domestic
sales. NASSCOM estimated fiscal 2009 growth in the much slower 16–17% range, to $71.7
billion, with exports at $47 billion and sales in India at about $25 billion. Market intelligence firm
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