The Indian Economy has bounced back from the unprecedented economic crisis of 2007-09 and is estimated to grow at 8.6 per cent in 2010-11 as compared to 8% in 2009-10.
The Indian IT-BPO Industry has also witnessed robust recovery in 2010-11. The revenue aggregate of IT-BPO industry is expected to grow by 19.2 per cent and reach US $ 88.1 billion in 2010-11 as compared to US $ 73.9 billion in 2009-10.
The Indian software and services exports including ITeS-BPO exports is estimated at US $ 59 billion in 2010-11, as compared to US $ 50 billion in 2009-10, an increase of 18.0 per cent. The IT services exports is estimated to be US $ 33.5 billion in 2010-11 as compared to US $ 27.3 billion in 2009-10, showing a growth of 22.7 per cent. BPO exports is estimated to grow from US $ 12.4 billion in 2009-10 to US $ 14.2 billion in 2010-11, a year-on-year (Y-o-Y) growth of 14.5 per cent. IT services contributed 57 per cent of total IT-BPO exports in 2010-11, followed by BPO at 24 per cent and Software products/engineering services at 19 per cent.
The US and the UK remain key markets for Indian IT-ITeS exports in 2010-11 accounting for about 61.5 per cent and 17.2 per cent of total IT-BPO exports respectively. Revenue growth from Continental Europe however, has been relatively tepid, as the effects of recession on these geographies have lingered on for a longer time.
The share of emerging markets in total exports has increased from 9.4 per cent in 2009-10 to 9.7 per cent in 2010-11. The Indian domestic IT market continues to grow in 2010-11. The revenue from the domestic market (IT Services, software products and BPO) is expected to grow from US $ 14.2 billion in 2009-10 to US $ 17.1 billion in the year 2010-11, an anticipated growth of about 20.4 per cent. IT services is one of the fastest growing segment in the Indian domestic IT market. It is driven by localized strategies designed by service providers. The IT-ITeS industry has created career opportunities for the youth, provided global exposure and offered extensive training and development.
Furthermore, the industry has been a front-runner in bridging the gender divide in the Indian workforce (over 30 per cent of employees are women; over 60 per cent of industry players employ differently able people). The IT-BPO industry has played a key role in putting India on the world map. The industry has attracted more than 10 per cent of total FDI flowing into India. The industry also led in the development of the Indian organizations as global multinationals -– with over 400 delivery centers (outside India), the industry has presence in 52 countries, and 200 cities with more than 10 organizations listed on overseas stock exchanges and more than 400 Fortune 500 customers. Direct employment within the IT-BPO sector is expected to grow by 10.4 per cent to reach 2.5 million in 2010-11 with over 2,40,000 jobs being added during the year. The indirect employment attributed to the sector is estimated to be about 9.0 million in 2010-11 as compared to 8.2 million in 2009-10.
The spectacular growth performance in the ITBPO industry in the last decade has helped the industry contribute substantially to India's GDP. In 2010-11, the IT-BPO industry's contribution to GDP is estimated to be 6.4 per cent as compared to 6.2 per cent in 2009-10.