The Indian IT, ITES, and BPO services grew 14.8 per cent to $82 billion in 2014-15 compared with the previous year, according to the data released by the country's Federal Bank (Reserve Bank of India) last week.
The data was part of the survey entitled Survey on Computer Software & Information Technology Enabled Services Exports: 2014-15 conducted by the Federal Bank. Exports of computer services accounted for 72 percent and the ITES/BPO services contributed the remaining 28 percent of the total software services exports respectively.
Nearly 7,000 IT companies were contacted of which 1,095 companies, including most of the large companies, responded. The responding companies accounted for around 77 percent of the total software exports during the year.
Exports of the remaining companies (mostly small) were estimated using the related distribution patterns after categorising them in four groups: IT services, business process outsourcing (BPO) services, engineering services, and software product development. According to the survey findings, the US and Canada continued to be the major destinations and accounted for nearly 60 percent of the total exports while Europe had nearly 25 percent share, of which the UK accounted for almost half.
With the rapid advancement made in software development and ITES including the BPO/knowledge process outsourcing services (KPO) industry, India has emerged as one of the most dynamic and vibrant economies in the world. In fact, India has emerged as the global leader in the outsourcing industry with half of the world's back office being opened in the country.
This was possible due to the technical competence, domain knowledge, experience, and expertise for offering quality IT services by the IT professionals and also their exposure to working on various platforms and systems.
Rostow Ravanan, executive director of the global IT consulting firm Mindtree, said that the report gave a very positive kind of feeling to the IT companies as the industry's growth in the last three decades has been tremendous compared with others.
Speaking to ZDNet, Ravanan said that this will have a meaningful impact and also huge satisfaction for the Indian IT and ITES industry. It has also made a difference to the country's GDP and the industry helped in democratising wealth creation.
"When India forayed into the IT sector a few decades ago, we struggled a lot to put the country on the world map. However, our efforts paid off with India getting the due recognition for its hard work," he said.
Exuding confidence about the future of the industry, Ravanan said the success story will continue in the coming years. It is poised to achieve a growth rate of 70 percent and estimated to be around $350 billion by 2020, he added.
However, the question is whether India be able to sustain the momentum as the US Fed has hiked the interest rates by 0.25 percent last night, and if it is likely to increase further in 2016. The hike was the first in almost a decade.
It is widely believed that the US Fed's decision is expected to affect the exports and also result in increased capital outflow in the near future in the emerging markets such as India, China, Brazil, and South Africa, stunting their economic growth for some time.