The economic downturn has forced industry body Nasscom to lower its projection of the

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revenue growth rate from software and service

exports (IT and BPO) to 16-17% in the current fiscal from the earlier forecast of 21-24%.

“Factoring the impact of the global economic crisis in the second half of 2008-09, the industry is expected to grow by 16-17% by March 2009, Nasscom president Som Mittal said.

“Despite an uncertain economic environment, the Indian IT-BPO industry will see sustainable growth over the next two years and our estimates indicate the industry will clock revenues of $60-62 billion by FY’11, growing at a compound annual growth rate of 15% per year,” he added. Software and BPO export revenue is expected to touch $47 billion in 2008-09 from the earlier anticipated figure of $50 billion, Nasscom said.

The combined revenue (export and domestic) is estimated to touch $60 billion in 2008-09, it said. The industry, including domestic companies, recorded an overall growth of 28%, clocking revenues of $52 billion in 2007-08.

The exports segment grew by 29% to register revenues of $40.4 billion in 2007-08. With the BFSI sector accounting for almost 40% of the revenues of this sector, the collapse of major banks in the US and the UK, Nasscom was left with no option but to revise its targets downwards from the earlier $50 billion software exports estimate for FY 2009, analysts said. After growing at 28-30% for years, slowdown has hit the export driven industry.

The domestic IT-BPO market is expected to cross Rs 1,11,000 crore by FY 2009 exhibiting a 20% growth rate.