IT & ITes
India had 55 per cent share of the US$ 185-190 billion global sourcing business in FY18.

Indian IT, ITes & BPM Industry Analysis

Latest update: December, 2018

Growth

 

Last Updated: December, 2018

India is the world's largest sourcing destination, accounting for approximately 55 per cent of the US$ 185-190 billion market in 2017-18. India’s highly qualified talent pool of technical graduates is one of the largest in the world and the country has a low-cost advantage by being 5-6 times inexpensive than US.

Revenue of India’s IT industry reached US$ 167 billion and exports stood at US$ 126 billion in 2017-18. Export revenue from digital segment forms about 20 per cent of the industry’s total export revenue.

Total export revenue of the industry is expected to grow 7-9 per cent year-on-year to US$ 135-137 billion in FY19. However, IT services exports are projected to add US$ 10 billion in FY19 to reach US$ 126 billion by the end of the year. Further, India’s IT-BPM sector is expected to expand to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue. Moreover, revenue from the digital segment is expected to form 38 per cent of the total industry revenue by 2025. IT industry employs nearly 3.97 million people in India of which 105,000 were added in FY18. The industry added around 105,000 jobs in FY18 and is expected to add over 250,000 new jobs in 2019.

The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows worth US$ 32.23 billion between April 2000 and June 2018 and ranks second in inflow of FDI, as per data released by the Department of Industrial Policy and Promotion (DIPP).

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.

Also, the government has identified Information Technology as one of the 12 champion service sectors for which an action plan is being developed. It will set up a Rs 5,000 crore (US$ 745.82 million) fund for realising the potential of these champion service sectors.

Indian IT & ITes Industry Report (December, 2018)
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Indian IT & ITes Industry Report (November, 2018)
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