Trade Analytics
IT & ITes
The IT-business process management (BPM) sector in India is estimated to expand at a CAGR of 9.5 per cent to US$ 300 billion by 2020.

Indian IT and ITeS Industry Analysis

Latest update: February, 2017

India's IT market size growing

  • India’s technology and BPM sector (including hardware) is likely to generate revenues of US$ 160 billion during FY16 compared to US$ 146.5 billion in FY15, implying a growth rate of 9.2 per cent
  • The contribution of the IT sector to India’s GDP rose to approximately 9.5 per cent in FY15 from 1.2 per cent in FY98
  • TCS is the market leader, accounting for about 10.4 per cent of India’s total IT & ITeS sector revenue in FY16
  • The top five IT firms contribute over 25 per cent to the total industry revenue, indicating the market is fairly competitive
Growth
Growth

Last Updated: February, 2017

India is the world's largest sourcing destination, accounting for approximately 55 per cent of the US$ 146 billion market. The country's cost competitiveness in providing Information Technology (IT) services, which is approximately 3-4 times cheaper than the US, continues to be its Unique Selling Proposition (USP) in the global sourcing market.

India’s highly qualified talent pool of technical graduates is one of the largest in the world and is available at a cost saving of 60-70 per cent to source countries. This large pool of qualified skilled workforce has enabled Indian IT companies to help clients to save US$ 200 billion in the last five years.

India’s IT industry amounts to 12.3 per cent of the global market, largely due to exports. Export of IT services accounted for 56.12 per cent of total IT exports (including hardware) from India. The Business Process Management (BPM) segment accounted for 23.46 per cent of total IT exports during FY15. The IT-BPM sector is estimated to expand at a CAGR of 9.5 per cent to US$ 300 billion by 2020.

The Government of India has extended tax holidays to the IT sector for software technology parks of India (STPI) and Special Economic Zones (SEZs). Further, the country is providing procedural ease and single window clearance for setting up facilities.

Sectoral Presentation (February, 2017)

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IT & ITeS India

Sector-wise breakup of export revenue FY15E
IT Sector Employment Distribution in India

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