Indian computer software exports have shown a growth of 65 per cent with export figure touching Rs 68 billion in 1997-98. Software exports from the country has been on the rise from Rs 7.4 billion in 1992-93, to Rs 41.13 billion in 1996-97 and Rs 68 billion crore in 1997-98.
Electronics and Computer Software Export Promotion Council (ECSEPC) projects the figure to touch Rs 100 billion 1998-99. This apex organization, sponsored by the ministry of commerce, projects the export figure from India for information technology related service exports to be as high as RS 500 billion in ten years.
The National Association of Software and Service Companies (Nasscom) estimates that Indian software companies totted up combined revenues of Rs. 68 billion during 1997-98, of which around 10 per cent came from Year 2000 projects. Earnings projections from Y2K projects have been scaled down (from $2-5 billions to $2 billions) since fewer companies than projected have outsourced, while many others have directly recruited Indian software engineers.
The euro conversion market is expected to be another revenue grosser for the software companies. In January 1999, several European countries will begin a three-year transition to a single currency, the euro. This will require software used by banks and financial institutions in the European Union and its trading partners to accordingly change their software programs. Revenues for Indian software companies from the euro conversion business is estimated at $1 billion.
Indian exports are mostly in the form of providing software services, that is developing or helping develop software for organizations overseas. Most of domestic turnover comes through selling of software products developed primarily in other countries. That is, the overseas revenue is earned by providing services while the domestic revenue comes mostly through trading.
The high money-earning capacity on the export front has directed all the policy making and business energies in increasing exports. But this exclusive focus on exports, at the cost of domestic software market development, is somewhat myopic, feels experts in this field. They feel exports are at encouraged at the cost of domestic development.
India was a leading participant in the world congress on information technology held in Washington DC last month when international experts and senior level executives of IT industry from 50 countries addressed themselves to the problems and challenges of information technology in the coming years. The discussions also included how legal, political and economic trends affect business in each market.
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