IT revenues cross $200-bn mark in FY22

Over 70% CXOs believe that FY23 is poised to be another growth year. The current demand trends on technology spending and economic growth point to a positive outlook on technology spending and hiring. The industry has set target of $350 bn by FY2026 growing at a rate of 11-14%, says Debjani Ghosh, president, Nasscom

On Cloud Nine

- IT sector clocks $30 bn of incremental revenue over previous fiscal

- Employs 1.8 mn women

- Exports (including hardware) grow at 17.2% to $178 bn

- IT exports account for 51% of total services exports

Bengaluru: Surge in technology spend last year enabled Indian technology industry to have one of the best years in a decade. Indian technology industry crossed the $200 billion revenue mark, touching $227 bn revenue in 2021-22, according to the Nasscom Strategic Review. This was addition of $30 billion of incremental revenue over the previous fiscal with an overall growth rate of 15.5 per cent.

Last fiscal also witnessed creation of nearly 450,000 jobs in the technology industry when most other industry witnessed job losses. The sector has also emerged as one of the largest employers of women in India with close to 1.8 million women currently working in this industry. "Exports (including hardware) recorded a growth of 17.2 per cent clocking revenue of $178 bn which is over 51 per cent share of India's total services exports," the report noted. Notably, IT services exports now account for 51 per cent of the total services exports out of India.

Within the technology industry, while the domestic revenue of the industry recorded a 1.2X growth over FY2019 to reach about $50 billion, ecommerce recorded a growth of 39 per cent to reach $79 billion in 2021-22. Digital revenue share stood at 30-32 per cent, recording an incremental revenue of $13 bn in FY2022E.

"2021 has been a great run for the year with our combined revenue crossing $200 bn. While exports did play a large part in this growth, domestic market emerged as a great propeller, nearing a total of $50 bn owing to India's tech adoption with public digital platforms like Aadhaar, UPI and CoWIN playing a large part in delivering citizen services. FY2022 will be a milestone growth year for the industry. Nasscom will continue to focus on priorities and play its role in catalyzing the trillion-dollar digital economy through accelerated industry growth and building thought leadership. Leading the industry transformation narrative of Think Digital Think India, the industry will maximize tech innovation and impact and build on future readiness with the Digital Next priority of the industry," said Debjani Ghosh, president, Nasscom. According to the industry body, most top-level technology leaders are of the opinion that FY23 will be another year of growth for the industry.

"Over 70 per cent CXOs believe that FY23 is poised to be another growth year for the industry. The current demand trends on technology spending and economic growth point to a positive outlook on technology spending and hiring. The industry has also set itself an ambitious target of $350 billion by FY2026 growing at a rate of 11-14 per cent," the industry body said.

The report pointed out that India is now home to more than 6,000 companies operating in IT services, BPM, ER&D space. Similarly, around 2,000 product companies are operating in the country with more than 25,000 startups. The country is also home to more than 2,000 Global Capability Centres (GCCs) of technology firms.