The Information Technology (IT), Information Technology Enabled Services (ITeS), and Business Process Outsourcing (BPO) sector demonstrated robust growth, registering a remarkable 12.21% upswing during the fiscal year 2022-23, as indicated by the Electronics and Computer Software Export Promotion Council (ESC).
Notably, the export of Computer Software/Services, encompassing ITES/BPO, saw a substantial increase, reaching an estimated $193 billion. This marks a noteworthy progression from the $172 billion reported in the previous fiscal year.
A closer examination reveals that the primary driver of this growth is the IT software/services segment, contributing a significant $126 billion. BPO services closely follow, playing a pivotal role and contributing $52 billion to the overall export value. Additionally, software product development made a substantial impact, accounting for $5.1 billion, alongside engineering services at $9 billion, and software product development, bringing in $5 billion. Sandeep Narula, the Chairman of ESC, underscored these figures, emphasizing the notable 14.63% growth in BPO services and a commendable 13.33% expansion in IT product exports. These statistics suggest promising prospects for increased global trade in these sectors in the foreseeable future.
ESC’s insights are part of their Statistical Year Book, slated for release at the upcoming IndiaSoft 2024 and the India Electronic Show, scheduled for January 17-19, 2024, in New Delhi.
The event, a fusion of exhibition and conference, is anticipated to draw over 600 delegates from 70 countries, with more than 1500 exhibitors showcasing cutting-edge products and solutions. The platform will also serve as a launchpad for several innovative products.
India’s stature as the leading destination for global services is further emphasized by ESC’s estimation, indicating a substantial market share of 35%, totalling $550 billion in 2022. This segment displayed a growth pace surpassing that of the IT-BPM industry. Sandeep Narula anticipates even greater growth in 2024, attributing it to the expanding markets for these products. The global IT & ITeS market, excluding hardware, achieved an impressive milestone, reaching $1.11 trillion in 2023.
ESC’s study also provides a detailed analysis of the global outreach of Indian IT products, indicating increased penetration into new countries while maintaining a stronghold in traditional markets. Despite the US continuing to be a major market, accounting for 54.92% of total software exports from India in 2022-23 (a slight decrease from the previous year’s 58%), there was a notable uptick in penetration rates in other traditional markets and successful forays into newer markets, as highlighted by Gurmeet Singh, Executive Director of ESC. Key markets for the IT-BPM sector include the UK (13.09%), the Netherlands (3.63%), Japan (6.50%), Germany (3.11%), and Australia (2.59%).