Mumbai: Software exports are taking a beating due to the global economic slowdown. The proof lies in the software and services export figure in the second quarter ended 30 September 2001, which have fallen short of the earlier projection of Rs 9,400 crore made by Nasscom in August this year. The actual figure is Rs 8.900 crore.

In comparison to the corresponding periods figure of Rs 7,440 crore in the previous year, software exports have grown by 19.60 per cent. Overall, in the first half ended 30 September 2001, software and services exports grew 33 per cent, clocking total export figure of Rs 17,500 crore.

As a sequel to the lower-than-projected growth, Nasscom has lowered its projected growth figure for the third quarter. Against the previous projection of Rs 10,300 crore made by it in August this year for the third quarter, Nasscom has re-estimated the figure at Rs 9,400 crore. In the fourth quarter, estimates have been reworked at a few hundred crores of rupees over and above the third quarter figure. However, the apex body is confident of achieving exports of $50 billion by 2008, estimated by a Nasscom-Mckinsey study conducted in 1999.

Nasscom is confident that large software companies like TCS, Infosys Technologies, Satyam Computers and HCL Technologies will end up posting a robust 30-to-40 per cent growth in the current year. It feels that medium-sized companies will achieve a 25-per cent growth and smaller ones will fall behind at about 15 per cent.

There is a reasonable degree of hope. And there is a pent-up demand, and customers continue to believe in the Indian IT industry, Nasscom chairman Pheroze Vandrewala said. He expects larger chunk of growth coming from European countries. Expectedly, the share of revenues from Europe has been revised upwards to 30 per cent in 2005 as compared to 24 per cent earlier. Greater business is also expected to come from countries like China, Singapore, Japan and Australia among others.

Defying the slowing trend in software exports, business process outsourcing (BPO) has done well by growing 70 per cent in the second quarter. BPO revenues continue to be pegged at Rs 7,450 crore in the current financial year, in comparison to Rs 4,350 crore in the previous year.