The micro, small and medium enterprises (MSMEs) in the information technology enabled services (ITeS) sector are estimated to grow by 7-9 percent in rupees to Rs 4.2 trillion this fiscal, driven by a strong order book and minimal impact of the global economic slowdown that had an impact on it last financial year.
Growth will be supported by the resumption of postponed projects and new orders from key segments such as banking, financial services and insurance and manufacturing.
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SMEs, which make up 30 to 40 percent of the sector, are largely involved in CRM (Customer Relationship Management) services, which account for three-quarters of sales and are poised to benefit from a shift towards -voice revenue.
In the other ITeS segments, transaction services will expand as a result of increasing digital payments. Knowledge services are also evolving with a greater focus on analytics-based offerings.
Employment growth in the sector is expected to remain modest at 0-1 percent this fiscal year as companies take a cautious approach, deferring discretionary projects and focusing on internal programs aimed at improving cost efficiency.
and skills development rather than scaling up through large-scale hiring.
The sector is expected to grow by 8 to 10 percent next financial year, driven by an increase in global outsourcing and offshoring to cut costs. Additionally, the healthcare and travel segments are expected to see double-digit revenue growth, further strengthening the sector.
First publication: September 30, 2024 | 11:08 PM IST