Our Bureau

New Delhi , March 7

COMPUTER software and services export is estimated to have grown by 29.76 per cent in dollar terms (26.01 per cent in rupee terms) during April-December 2003, over that in the same period the previous year, according to the data compiled by the Electronics and Computer Software Export Promotion Council (ESC).

"In absolute terms, the export of computer software and services has touched Rs 40,700 crore ($8.66 billion) during April-December 2003, giving rise to the hope that the target set for the fiscal 2003-04 at Rs 58,698 crore ($12.49 billion) can be achieved," according to Mr D.K. Sareen, Executive Director, ESC.

He noted that during April -December 2003, over 69 per cent of the target set for export of computer software and services for the whole of 2003-04 had been achieved. There is a possibility of overshooting the target going by the solid strides software exports are making in the recent days, despite the fact that anti-outsourcing campaigns are at its highest pitch in the US now mainly due to the forthcoming elections.

One of the reasons for the accelerated growth of software exports from the country is the increase in the number of multinational corporations setting up 100 per cent subsidiaries in India to cut down the labour cost in the US and Europe. Though there is some element of resistance from the US Administration against outsourcing, there is a growing band of Chief Financial Officers in the US and Europe vociferously pitching for continuation of outsourcing.

Further, the ESC has noted that countries in the European Union have assured that they will not resort to any curbs on outsourcing since they feel that any protectionist measures will have adverse impact on the nation's competitiveness in the medium and long run.

Similarly, the World trade Organisation also has criticised the curbs on outsourcing.

© Copyright 2000 - 2009 The Hindu Business Line