Indian technology exports are set to reach $178 billion (excl. hardware exports), a growth of ~17.02% and an addition of ~$26 billion over FY2021:
- IT services: At $95 billion, it continues to lead in terms of market share and is also likely to be the best performing segment of FY2021, a y-o-y growth of 18%.
- BPM: At $39 billion and a growth rate of 14 % y-o-y, this sector too is accelerating it shift to platform solutions (BPaaS to grow 4X vis-à-vis traditional BPM). Growth drivers include automation-led services in F&A and HR, increased adoption of RPA and analytics.
- ER&D: Led by increasing softwarization of equipment & devices (“software-led products”) and cloudification, this segment is being driven by cloud engineering, services around data monetization and digital engineering. Historically, this segment has been recording the fastest growth rate; however, for FY2021, it is likely to see a drop in growth rate (17% y-o-y) to touch $36 billion
- Software products: Rise in demand for collaborative applications, application platforms, security software, system & service management software, and content workflow & management applications will lead to a 34% growth of this segment to $7 billion.