India IT-BPM industry revenue rose 15.5% in FY22: Economic Survey
The increased adoption of digital technologies by enterprises pushed the growth of the Indian IT-BPM industry.
The drive towards digitisation has given a boost to India’s information technology (IT) and business process management (BPM) industries, with revenues rising by 15.5% in FY22 when compared to 2.1% in FY21.
The Economic Survey 2022-23 found that the sharp rise in revenues was a result of the increased reliance of businesses on technology to reduce their cost expenditure and improve efficiency.
It also found that all the sub-sectors within the IT-BPM industry recorded double-digit growth during the fiscal. Exports grew by 17.2% in FY22 compared to 1.9% in FY21.
The growth in exports was seen across geographies, with the US, Europe (excluding the UK), and the UK continuing to be the major markets. Many firms are now focusing on new markets, more prominently the Middle East and Latin America, leading to market diversification which will increase the IT-BPM sector’s resilience in the coming years, the survey noted.
“The industry recorded nearly 10% estimated growth in direct employee pool in FY22 with a highest-ever net addition to its employee base,” the survey said.
This sharp rise in revenues was attributed largely due to the advent of the COVID-19 pandemic which accelerated the adoption of digital technologies.
However, the survey also put in a note of caution as the quarterly review of NASSCOM in August 2022 indicates that technology spending during FY23 is likely to see a relatively muted growth dampened by an expected global slowdown.
Despite the present environment, the broad indicators show a bullish trend for the Indian IT-BPM industry. India has emerged as a global powerhouse for Engineering R&D (ER&D) and innovation, with many Global Competency Centres (GCCs) performing complex R&D functions incorporated in India in the last six years.
This has led to an increase in patent filings—rising from 138,000 patents filed between 2015-21 to over 85,000 filed in emerging technologies.
“India has emerged as a digital talent nation with a high share of the working population and growing undergraduate enrolments. Employment across technology companies witnessed an increase, with an uptrend in the digital talent base,” the survey noted.
Edited by Kanishk Singh