IT services revenue reaches $143 bn during last fiscal

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IT & IT enabled services have earned revenue of $143 billion which is around 9.3  percent of GDP in India during the last fiscal.

The IT and ITes sector recorded an export of $108  billion which is around 45 percent of services export from India. The sector gave direct employment to 3.7 million people. Last year alone, the sector created 2 lakh additional employment.

India holds 38 percent share in global BPO industry and stage is set for massive growth of the sector. “With increased focus of the government on good governance and impetus of the industry towards better customer services, the need for call centers will increase,” said Ravi Shankar Prasad, union minister for Electronic & IT, Law & Justice.

India is moving towards a citizen oriented e-governance model, which will be based on reduced physcial interface with the government office, the needs for effective citizen support would be required. This demand can be met by the call centres.

Running BPO operations in big cities has become expensive due to cost of real estate and essential amenities. To mitigate this cost factor the BPO industry should move to small towns where these overheads are lesser. According to some estimate if the BPO industry moves to smaller towns it will save around 10-25 percent of the costs.

India BPO Promotion Scheme (IBPS)

The India Government has approved India BPO Promotion Scheme (IBPS) under the Digital India Program to create employment opportunities and promotion of BPO/ITES operations across the country to secure balanced regional growth of IT/ITES industry, with an outlay of Rs 493 crore.

The scheme provides capital support along with special incentives up to Rs 1 lakh / seat in form of Viability Gap Funding (VGF).

About 48,300 seats have been planned with distribution across State(s)/UT(s) based on population percentage as per Census 2011, excluding metro cities along with their urban agglomeration viz. Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune and States of North East Region (NER).