IT/ ITeS /BPO Sector Grew at 12.21% in 2022-23: ESC

IT/ ITeS /BPO Sector Grew at 12.21% in 2022-23: ESC

Export of Computer Software / Services (including ITES / BPO) registered a growth of 12.21 percent during the year 2022-23 over the preceding year, according to an estimate made by the Electronics and Computer Software Export Promotion Council (ESC).

“In value terms, export of the IT/ITeS/ and BPO during 2022-23 is estimated at US$ 193 billion, up from US$ 172 billion estimated in the year 2021-22, registering a growth of 12.21%, which is mostly contributed by IT software/services at US$126 billion, followed by BPO services (US$ 52 billion) software products development (US$5.1 billion), engineering services US$ 9 billion) and software product development (US$ 5 billion);” says Sandeep Narula, Chairman, ESC, adding that appreciable growth of BPO services at 14.63% and 13.33% growth of IT products are good auguries since such global trading of these products would go up considerably in the coming years.

These estimates are found in ESC’s Statistical Year Book which will be released at the inaugural of IndiaSoft 2024 and the India Electronic Show to be held on17-19 January 2024 in New Delhi. The event, which will be an exhibition cum conference, will be attended by over 600 delegates from 70 countries. Over 1500 exhibitors from India and abroad will be displaying their products and solutions at the three-day event, which will also witness the launch of several innovative products.

The ESC estimates also point out that India is the leading destination for global services of US$550 billion in 2022, accounting for 35% of the market share. This segment grew at a higher pace compared to the IT-BPM industry. “Given the pick-up of the sector, it is poised to register higher growth in 2024, as markets for such products are expanding”; Narula said, adding that the global IT &ITeS market (excluding hardware) clocked at US$ 1.11 trillion in 2023.

ESC study indicates that Indian IT products are increasingly penetrating more countries and at the same time maintaining their footprints in the traditional markets. “The US continues to be the major market accounting for 54.92% of the total software exports from India in 2022-23 (as against 58% in the previous year), which in value terms translated into US$106 billion. The deceleration in the US market share was accompanied by a higher rate of penetration in other traditional markets and forays into newer markets.”., says Gurmeet Singh, Executive Director, ESC.

According to ESC analysis, the other important Indian markets for the IT-BPM sector are the UK (13.09%) the Netherlands (3.63%), Japan (6.50%), Germany (3.11%), Australia (2.59%), and Australia (2.59%).