ESC Report: Staggering 12.21% Growth Catapults IT/ITeS/BPO Sector to $193 Billion in 2022-23
“ESC Report Highlights Robust 12.21% Growth in IT/ITeS/BPO Sector, Reaching $193 Billion in 2022-23″
In a testament to its resilience and dynamism, the Information Technology (IT), Information Technology Enabled Services (ITeS), and Business Process Outsourcing (BPO) sector in India have experienced a remarkable 12.21% growth during the fiscal year 2022-23, according to insights from the Electronics and Computer Software Export Promotion Council (ESC). The export of Computer Software/Services, including ITES/BPO, soared to an estimated $193 billion, demonstrating significant progress from the $172 billion reported in the previous fiscal year.
A detailed breakdown of the numbers reveals that the IT software/services segment played a pivotal role in this growth, contributing a substantial $126 billion. Following closely, BPO services made a noteworthy impact, contributing $52 billion to the overall export value. Other contributors include software product development at $5.1 billion, engineering services at $9 billion, and software product development, which brought in $5 billion. ESC Chairman Sandeep Narula highlighted the impressive 14.63% growth in BPO services and a commendable 13.33% expansion in IT product exports, signaling positive prospects for increased global trade in these sectors.
ESC’s comprehensive insights are part of their Statistical Year Book, which is scheduled for release at the upcoming IndiaSoft 2024 and the India Electronic Show, set to take place from January 17-19, 2024, in New Delhi. This joint exhibition and conference are expected to draw over 600 delegates from 70 countries, featuring more than 1500 exhibitors showcasing cutting-edge products and solutions. The event is also positioned as a launchpad for several innovative products, underlining India’s standing as a premier destination for global services.
Further emphasizing India’s dominance in global services, ESC estimates a substantial market share of 35%, totaling $550 billion in 2022. This segment exhibited growth outpacing the broader IT-BPM industry. Sandeep Narula anticipates even greater expansion in 2024, attributing it to the expanding markets for these products. The global IT & ITeS market, excluding hardware, reached an impressive milestone of $1.11 trillion in 2023.
ESC’s study also delves into the global outreach of Indian IT products, showcasing increased penetration into new countries while maintaining a stronghold in traditional markets. While the United States remains 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. Additionally, India successfully made inroads 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%). The findings underscore India’s evolving and expanding role in the global IT and services landscape, with promising trends for continued growth and innovation