IT & BPM - Highlights 2O16
10 Months agoIndia's IT & BPM industry recorded USD 143 Billion in revenues in FY2016, clocking approximately 8.5% year-on-year growth.
- Growing spending power and online user base of 375 Million
- Investment opportunities – Smart cities, Digital India, Make in India
- World’s fastest growing innovation and digital hub – 40% growth in no. of start-ups year-on-year
- Highest volume of diverse and English-speaking employable talent (approx. 6.2 million)
- Income Tax cut on royalty fee on tech services reduced to 10% (Union Budget 2015
- 100% FDI allowed under automatic route
IT- BPM AND ITES – An overview
- India’s IT-BPM industry recorded revenues of USD 143 Billion in FY2016 clocking approximately 8.5% year-on-year growth
- Exports in FY2016 stood at USD 108 Billion, a 10.3 % year-on-year growth
- Domestic market value in FY2016 estimated at USD 35 Billion, a 3.2% annual growth year-on-year
- Cumulative FDI inflow in computer software & hardware is USD 21 Billion from April 2000 to March 2016 making it the third ranked sector in terms of FDI inflow in India (Source: NASSCOM, DIPP)
- India retained its spot as the world’s top sourcing destination with a share of 56% in FY2015
- India’s cost competitiveness in providing IT services is approximately 3-4 times more than other developed economies
- The sector is also expected to triple its current annual revenue by FY 2025, as per NASSCOM.
- The industry employs nearly 3.7 million people
- India is also maturing to become the Silicon Valley of the developing world with >4,200 start-ups – third largest start-up community in the world, redefining India’s innovation capabilities and projecting it as a global talent powerhouse (Source: NASSCOM)
- The top six firms contribute around 36% to the total industry revenue (Source: NASSCOM, TechSci Research Note: E – Estimates)
MAJOR EXPORT MARKETS
- The major markets for IT services exports for India include U.S., U.K and Europe contributing to ~90% of the total exports.