IT & ITes

India remains a preferred destination for information technology (IT) and information technology enabled services (ITeS) in the world.

IT & ITeS Industry in India

Latest update: December, 2013

Export Revenue

Total exports from the IT services rose at a compound annual growth rate (CAGR) of 13.1 per cent during FY08-13.

Export Revenue

Export Segments

BFSI is a key business vertical for the IT-BPM industry. It generated export revenue of around US$ 31 billion during FY13, accounting for 41 per cent of total IT-BPM exports from India.

Export Segments

Market Size

The contribution of the IT sector to India’s GDP rose to approximately 8 per cent in FY13.

Market Size

Market Segment

Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports (excluding hardware).

Market Segment

Updated: December, 2013



The Indian Information Technology (IT) and Information Technology enabled Services (ITeS) sectors go hand-in-hand in every aspect. The industry has not only transformed India’s image on the global platform, but also fuelled economic growth by energising higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and hence, has contributed a lot to social transformation in the country.

Furthermore, Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries.

Indian organisations are turning to IT to help them grow business in the current economic environment. IT is seen as a change enabler and a source of business value for organisations by 85 per cent of the respondents, according to a study by VMware.

Market Size

India's IT-business process outsourcing (BPO) industry revenue is expected to cross US$ 225 billion mark by 2020, according to a Confederation of Indian Industry (CII) report, titled 'The SMAC Code-Embracing New Technologies for Future Business'.

India is expected to become world's second-largest online community after China with 213 million internet users by December 2013 and 243 million by June 2014, according to a report by Internet and Mobile Association of India (IAMAI) and IMRB International.

Technology firms in India are expected to reap the benefits of Internet of Things (IoT) data, considered to be a US$ 18 billion opportunity, to help clients improve productivity and asset utilisation as well as to enhance end-customer experience, as per networking firm Cisco.

India’s total IT industry’s (including hardware) share in the global market stands at 7 per cent; in the IT segment the share is 4 per cent while in the ITeS space the share is 2 per cent. India's IT and BPO sector exports are expected to grow by 12-14 per cent in FY14 to touch US$ 84 billion - US$ 87 billion, according to Nasscom.

Moreover, India plans to spend around US$ 3.9 billion on cloud services during 2013-2017, of which US$ 1.7 billion will be spent on software-as-a-service (SaaS), according the latest outlook of IT research and advisory company, Gartner Inc.

The enterprise software market in India is expected to reach US$ 3.92 billion in 2013, registering a growth of 13.9 per cent over 2012 revenue of US$ 3.45 billion, according to Gartner.

Mumbai with 12 million internet users has emerged as the top most city in the country with highest penetration of internet users, followed by Delhi (8.1 million) and Hyderabad (4.7 million), according to the data released by Internet & Mobile Association of India (IAMAI).


Indian IT's core competencies and strengths have placed it on the international canvas, attracting investments from major countries.

According to data released by the Department of Industrial Policy and Promotion (DIPP), the computer software and hardware sector has attracted foreign direct investment (FDI) worth Rs 54,347.88 crore (US$ 8.77 billion) between April 2000 and September 2013.

Some of the major investments in Indian IT and ITeS sector:

  • Wipro plans to acquire US-based mortgage due diligence and risk management service provider Opus Capital Markets Consultants (Opus CMC) for Rs 465 crore (US$ 75.07 million). Opus CMC provides comprehensive risk management solutions to the mortgage industry in the US.
  • Infosys has opened a new centre in Sydney, Australia. This is its fourth development centre in Australia and has a capacity to seat 140 employees. Further, the company plans to hire 85 people in the region.
  • Hitachi has acquired a foothold in India's payment space with the acquisition of Prizm Payment Services. The firm has entered into share transfer agreements with Prizm shareholders, including Winvest Holdings (India), Sequoia Capital and Axis Bank.
  • Dell has opened its India design centre for its storage technologies and has realigned its domestic research and development (R&D) unit. The facility will focus on developing software, integrating aspects involving back-up of emails and related storage.
  • Tata Consultancy Services (TCS) has launched a software development facility in Ahmedabad, Gujarat. The facility will serve global customers across industry segments.
  • Cognizant Technology Solutions has acquired ValueSource, a subsidiary of KBC Group, a Belgium-based multi-channel bank insurance group.
  • Schneider Electric has commissioned a services bureau in Bengaluru as a nerve centre and a support facility for data centres in India and the Asia-Pacific region.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


Brand India Pharma


India has the fastest internet traffic growth globally and is expected to have 348 million users by 2017, up from 138 million in 2012.

+ More >

Brand India Pharma

IBEF Publications

IBEF Publications

IBEF Publications:
Innovations from India:
Harbinger of Change

Order Now >

+ More Publications >

IBEF Publications

Perspectives More

Loading blogs ...

ideas More


Happily Unmarried : For the Fun of It
"It's a revolt against convention. Happily Unmarried counters the propensity of marketers to create products in the conventional backdrop of happily married couples...


Join now. Enjoy FREE subscriptions downloads, updates and more.


Already a member?
Login / Retrieve Password

Copyright © 2010-2015 India Brand Equity Foundation

All material, information, data, images or content on this website is subject to copyright or other applicable intellectual property laws and no part of it can be reproduced in any form (including paper or electronic form) without prior written consent and approval from IBEF. Infringements are subject to prosecution under the applicable laws. For consent related queries and conditions,
please write to

IndiaAn initiative of the Ministry of Commerce & Industry, Government of India