12-14-2005, 02:42 AM
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Report: India IT to generate $60B by 2010
DEC. 12 7:14 P.M. <b>Information technology and outsourcing are on track to generate US$60 billion (euro50.5 billion) in export revenues for India by 2010, according to a newly released report.</b>
If India makes the necessary investments in training and infrastructure, the report said, foreign companies would fuel the dramatic growth by continuing to move parts of their operations to India, where they benefit from low costs and a highly educated, tech-savvy, English-speaking work force.
The report by India's National Association of Software and Services Companies and international management consulting firm McKinsey & Company, released Monday, <b>said the industry would become the driving force of the Indian economy and account for 7 percent of the Indian gross domestic product in 2010, up from 3 percent today.</b>
<b>The growth would likely generate 2.3 million direct jobs and 6.5 million indirect jobs in India, it said.</b>
But the NASSCOM-McKinsey report cautioned that India would need to invest heavily in personnel training and in developing infrastructure to achieve the goals.
Urban infrastructure was key, the report said, and the government would need to create at least 10 new integrated high-tech townships, with appropriate land development, roads, electricity and international airports.
"Our cities are at choking point," said McKinsey's Jayant Sinha.
India's cities are notoriously underdeveloped, with frequent power cuts, potholed, traffic-jammed roads and poor municipal services.
The industry would also face a shortfall of some 500,000 properly trained workers. But this could be overcome by the companies providing their own training programs, the report said.
Overall, NASSCOM-McKinsey estimated the potential global market for offshoring at some US$300 billion (euro252 billion), of which US$110 (euro92.5 billion) will be offshored by 2010.
India's share of the market would grow by 25 percent a year over the next five years, from its current US$22 billion (euro18.5) to US$60 billion (euro50.5 billion), the report said.
One McKinsey partner, Noshir Kaka, said the figure was conservative and did not factor in potential innovations and regulatory reforms that could further speed growth.
His caution was matched by the exuberance of others, such as NASSCOM Vice Chairman Ramalinga Raju, who said India could see an additional US$15 billion to US$20 billion (euro12.6 billion to euro16.8 billion) on top of what the report predicted.
Copyright 2005, by The Associated Press. <!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Report: India IT to generate $60B by 2010
DEC. 12 7:14 P.M. <b>Information technology and outsourcing are on track to generate US$60 billion (euro50.5 billion) in export revenues for India by 2010, according to a newly released report.</b>
If India makes the necessary investments in training and infrastructure, the report said, foreign companies would fuel the dramatic growth by continuing to move parts of their operations to India, where they benefit from low costs and a highly educated, tech-savvy, English-speaking work force.
The report by India's National Association of Software and Services Companies and international management consulting firm McKinsey & Company, released Monday, <b>said the industry would become the driving force of the Indian economy and account for 7 percent of the Indian gross domestic product in 2010, up from 3 percent today.</b>
<b>The growth would likely generate 2.3 million direct jobs and 6.5 million indirect jobs in India, it said.</b>
But the NASSCOM-McKinsey report cautioned that India would need to invest heavily in personnel training and in developing infrastructure to achieve the goals.
Urban infrastructure was key, the report said, and the government would need to create at least 10 new integrated high-tech townships, with appropriate land development, roads, electricity and international airports.
"Our cities are at choking point," said McKinsey's Jayant Sinha.
India's cities are notoriously underdeveloped, with frequent power cuts, potholed, traffic-jammed roads and poor municipal services.
The industry would also face a shortfall of some 500,000 properly trained workers. But this could be overcome by the companies providing their own training programs, the report said.
Overall, NASSCOM-McKinsey estimated the potential global market for offshoring at some US$300 billion (euro252 billion), of which US$110 (euro92.5 billion) will be offshored by 2010.
India's share of the market would grow by 25 percent a year over the next five years, from its current US$22 billion (euro18.5) to US$60 billion (euro50.5 billion), the report said.
One McKinsey partner, Noshir Kaka, said the figure was conservative and did not factor in potential innovations and regulatory reforms that could further speed growth.
His caution was matched by the exuberance of others, such as NASSCOM Vice Chairman Ramalinga Raju, who said India could see an additional US$15 billion to US$20 billion (euro12.6 billion to euro16.8 billion) on top of what the report predicted.
Copyright 2005, by The Associated Press. <!--QuoteEnd--><!--QuoteEEnd-->