Domestic market should contribute more to Indian IT revenues: R Chandrashekhar, Nasscom

NEW DELHI: IT-BPM industry body Nasscom today said the low contribution of domestic market to the revenues of Indian IT sector is "worrying" and steps should be taken to improve the situation.

"India is the leading country in terms of helping countries, businesses globally to transform... Last year, the industry grew by 13 per cent. However, 80 per cent of the revenues still come from other countries...This is a worrying trend," Nasscom President R Chandrashekhar said at an Assocham event here.

There are issues like pace of implementation, connectivity and pricing that need to be looked into, which will help in further growth in the domestic market, he added.

Driven by an improvement in the global economic climate and rise in the technology spend, the Indian IT-BPM export revenues stood at $ 86 billion (a year-on-year growth of 13 per cent) for FY'2014.

Domestic market, on the other hand, grew 10 per cent year- on-year, taking the domestic revenues to Rs 1,150 crore.

In FY'2015, Nasscom expects the industry to add overall revenues of $ 13-14 to existing industry revenues of $ 118 billion.

Export revenues for FY'2015 is projected to grow by 13-15 per cent to reach $ 97-99 billion, while domestic revenues for the same period is expected to grow at 9-12 per cent to reach Rs 1.25-1.28 lakh crore during this fiscal.