IT sector must overcome challenges: Economic Survey

February 25th, 2011 - 7:56 pm ICT by IANS  

Pranab Mukherjee New Delhi, Feb 25 (IANS) The future of the information technology (IT) sector in India depends on the way it addresses challenges such as increasing competition and infrastructure constraints, according to the Economic Survey 2010-11. Finance Minister Pranab Mukherjee presented the survey in parliament Friday.

“India continues to be the dominant player in the global outsourcing sector. However, its future will depend on how the challenges related to continued competitiveness are tackled,” it said.

The annual report also suggested that the industry pay attention to competition in Business Process Outsourcing (BPO) from other countries and policies in some developed countries like Britain to employ locals.

According to Nasscom, the organisation that represents and sets the tone for public policy for the Indian software industry, the year 2010-11 will witness broad-based growth across mature and emerging verticals.

In 2009-10, while the overall Indian IT revenue grew to $63.7 billion, it is estimated to grow $76.1 billion in 2010-11, translating into a compound annual growth rate of 22.5 percent from 2004-05 to 2010-11.

The industry grew by an estimated 19.5 percent in 2010-11 compared to the moderate growth of 6.2 percent in 2009-10.

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