Technology for MSMEs: The growth momentum of information technology-enabled services (ITeS) sector would keep up in the current fiscal year (FY23), auguring well for small and medium enterprises (SMEs) as it accounts for 20-40 per cent of the sector’s revenue, according to a report by Business Standard.
In the financial year 2021-22, the ITeS sector saw a revenue growth of about 13-15 per cent to about Rs 3.1 trillion, riding on volume recovery across three key segments, customer relationship management (CRM), knowledge, and transactions. As a matter of fact, SMEs have major exposure to CRM.
Exports accounted for around 90 per cent of the pie in the last fiscal, with CRM accounting for 37 per cent, the report said. On the contrary, the domestic industry was smaller, accounting for around 10 per cent of revenue, but CRM contribution was remarkably high, around 80 per cent.The non-voice CRM (web chat or email) has been gaining momentum within the segment.
The organisations will specifically focus on digital transformation to enhance customer experience and ensure growth, this fiscal year. The integration of new age technologies across different business verticals for rich customer experience and better delivery support will augment growth manifold.
Besides, the government-backed projects such as Digital India and demand from health care are expected to aid revenue growth of 7-10 per cent year on year in the current fiscal.
Adoption of robotic process automation technologies and growing demand for CRM would benefit the CRM players. The government-backed projects will also increase the demand for knowledge and transaction services even though its share is low and is around 20 per cent.
Due to increasing cost of talent acquisition and retention as well as facility and travel expenses, the industry’s margins are expected to contract.