Exports of computer software and services, which includes IT, ITES (IT enabled services) and business process outsourcing (BPO), grew 12.2% in the 2022-2023 over the preceding year, according to estimates by the Electronics and Computer Software Export Promotion Council (ESC).
In value terms, the exports increased from $172 billion in 2021-2022 to $193 billion in 2022-2023, the estimates from ESC’s Statistical Year Book showed.
ESC chairman Sandeep Narula said that IT software/services accounted for the largest share of the exports, contributing $126 billion, followed by BPO services contributing $52 billion, software products development contributing $5.1 billion, and engineering services $ 9 billion.
He added that exports of BPO services grew 14.63% and that of IT products 13.33%, which are positive signals for the future as global trading of these products is expected to go up considerably in the coming years.
“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, was estimated to be $1.11 trillion in 2023.
The IT/BPM industry however grew at a slower pace that global services, for which India is a leading destination with a 35% market share, pegged at $550 billion in 2022.
ESC’s study indicated that Indian IT products are penetrating more and more countries while also maintaining their presence in their traditional markets. The US continued to be the major market for Indian software exports, though a decline in its share was observed over the past year. The US accounted for $106 billion or 54.92% of the software exports in 2022-23, compared to 58% the preceding year.
“The deceleration in the US market share was accompanied by a higher rate of penetration in other traditional markets and forays into newer markets,” said Gurmeet Singh, executive director, ESC.
Other significant markets for the Indian IT-BPM sector are the UK with a 13.09% share of the exports, the Netherlands with 3.63%, Japan with 6.50%, German with 3.11%, Australia with 2.59%, and Australia 2.59%, ESC analysis found.
