BENGALURU: The Information Technology-Business Process Management(BPM) revenues have witnessed 15.5 per cent y-o-y growth in FY22 compared to 2.1 per cent in FY21, says Economic Survey 2023.
The industry has been resilient during the pandemic, driven by increased technology spending and digital transformation.
All sub-sectors of the IT-BPM industry also showed double-digit revenue growth in FY22. Within the IT-BPM sector, IT services constitute over 51 per cent share.
"Exports (including hardware) witnessed a growth of 17.2 per cent in FY22 compared to 1.9 per cent growth in FY21, owing to the increased reliance of businesses on technology, the roll-out of cost-reducing deals and the use of core operations," the survey said.
Many IT firms are now focusing on new markets- Latin America and the Middle East, says the survey.
Recently, Wipro CEO Thierry Delaporte at the company's earnings call said the Middle East is a very important market for Wipro.
Wipro has decided to establish the headquarter of the APMEA region in Dubai. "We have decided to launch our Capco business in the Middle East. And we are very bullish about the outlook of Wipro in the Middle East over the next quarters. It will continue to surprise," he said.
These new markets- the Middle East and Latin America- lead to market diversification which will increase the IT-BPM sector’s resilience in the coming years, the survey said.
Also, the industry undertook over 290 mergers and acquisitions in FY22, primarily focusing on digital services. Though digital infrastructure played a crucial role in driving technology adoption, Nasscom's quarterly review in August 2022 indicates that technology spending during FY23 is likely to see a relatively muted growth dampened by an expected global slowdown.