IT & BPM - Highlights 2O16

4 Years agoIndia's IT & BPM industry recorded USD 143 Billion in revenues in FY2016, clocking approximately 8.5% year-on-year growth.

Advantage India

  • 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)


Pro-sector Policies

  • 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)



  • The major markets for IT services exports for India include U.S., U.K and Europe contributing to ~90% of the total exports.

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