Segments of India’s IT Sector
Strong Growth in IT & ITeS Exports
- Total exports from the IT-BPM sector (including hardware) were estimated to have been US$ 126 billion during FY18; exports rose at a CAGR of 12.26 per cent during FY09–18.
- Export of IT services has been the major contributor, accounting for 57.00 per cent of total IT exports (including hardware) during FY18.
- BPO and E R&D and software products exports accounted for 21.20 per cent and 21.80 per cent of total IT exports during FY18, respectively.
- Exports from the sector are expected to reach US$ 135-137 billion in FY19.
BFSI – IT BPM Industry
- BFSI is a key business vertical for the IT-BPM industry. A major share of revenue of IT majors comes from the BFSI business vertical.
- Adoption of new technologies is expected to accelerate the growth of the BFSI vertical. The need for undertaking investments in IT will also be required for gaining competitive advantage instead of solely for reducing operational costs.
- Revenue growth in the BFSI vertical stood at 10.3 percent y-o-y in the first quarter of 2018-19.
- US has traditionally been the biggest importer of Indian IT exports; over 62 percent of Indian IT-BPM exports were absorbed by the US during FY18.
- Non-US-UK countries accounted for just 21 percent of total Indian IT-BPM exports during FY18.
- As of FY18, US and UK are the leading customer markets with a combined share of nearly 80 percent. However, there is growing demand from APAC, Latin America and Middle East Asia.
- Being the low-cost exporter of IT services, India is going to attract more markets in other regions, in the same manner, it tapped US markets.