| 2.3.5 Domestic IT and BPO Market
Growth of India’s IT and BPO industry has been export led and in 2006-07 exports accounted for two-thirds of the total revenue. However, the overall size of the domestic market comprising hardware, software and services has become significant having grown to US $ 15.9 billion in 2006-07. Banking, financial services and insurance (BFSI), manufacturing, telecom, and the government are already the key domestic users of hardware systems and software services and education, retail and healthcare are some of the emerging areas in which the use of IT is growing. It is estimated that software and services spending has now overtaken spending on hardware. Increasing complexity of IT requirements has compelled the corporate users to outsource IT services. BPO demand in the domestic market is also growing rapidly not only by the MNCs but also by the public sector.
While the need to become competitive in a globalised environment will undoubtedly drive the domestic manufacturing and service industries to enhance the use of IT hardware, software and services, a big impetus could be provided for the expansion of domestic IT and BPO services, if the Government of India and the State Governments could accelerate implementation of the National e-Governance Plan (NeGP), which was approved in May 2006. The Plan aims at making all government services accessible to the common man through common service delivery outlets. The NeGP has 27 Mission Mode Project components as shown in the table below.
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