IT and ITES
IT and ITES
The IT, AI and ITES industry comprises of software products, engineering services, IT services, Business Process Management (BPM), and hardware. The industry is undergoing rapid evolution and is reshaping business operations in a big way. While it made a modest beginning in 1991 with export revenue of about USD 100 million (Rs. 708.51 cores), the figure has reached USD 137 billion (Rs. 970665.55 crores) in 2019. Increased internet penetration, expected to reach 666.4 million by 2023, is transforming India into a digital economy. This massive demand for data and data-led services has further fuelled the need for personalization, customization, which is the driver for the growth of IT, AI, and ITES industry.
India is the focal point of global IT, AI, and ITES sector. With a training expenditure of USD 1.6 billion (Rs. 11336.24 crores) each year, it is the hub of digitally skilled workforce for global sourcing. The cost-effectiveness (at least five times less expensive than US companies) lends India a privileged position in the global sourcing market. Of the total global sourcing market of USD 185-190 billion (Rs. 1346178.50 crores) in 2017-2018, India boasts of a market share of 55%. This share makes the country a leader among sourcing destinations in the world. Indian IT, AI and ITES companies have a presence in over 80 countries across the globe. About 75% of the global talent in the IT, AI, and ITES sector is present in India, making it the most talent-rich country in the world.
The IT, AI, ITES industry in India reached an unprecedented USD 181 billion (Rs. 1282412.15 crores) in 2018-19 and is expected to reach USD 350 billion (Rs. 2479802.50 crores) by 2025. The IT industry’s contribution to India’s GDP was 7.7 % in the year and is expected to reach 10% by 2025. The sector employs over 3.97 million professionals and is expected to hire over 250000 in 2019. The industry upskills and reskills over 50% of the workforce each year. Industry exports scaled new heights, reaching USD 137 billion (Rs. 970665.55 crores) in 2019. USD 44 billion (Rs. 311746.60 crores) was the total domestic revenues generated by the industry in the same year. The exports from hardware are expected to rise by 7-8% in 2019. The sector has witnessed over 4750 technology start-ups, with over 1500 start-ups in the year 2018, making India the third-largest start-up base in the world. Disruptive information technology and technology-enabled services upsurged in 2018. Taking cognizance of this rise, the government has sanctioned USD 942 million (Rs. 6654 crores) for this sector in the Union Budget 2019.
How can we help?
We have vast experience with clients in the IT, AI and ITES sector, which enables us to devise your financial, tax, entry strategy, entity strategy, foreign direct investment strategy and regulatory strategies in an informed manner to enable your IT, AI and ITES business to derive the desired value and results.
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