ITeS, MSMEs Marked Stable Growth Rate Amid Global Slowdown, Shows Report

In the dynamic landscape of Information Technology Enabled Services (ITeS), the industry is gearing up for sustained growth as revealed by a recent report. Despite global economic headwinds, the ITeS sector estimated to have expanded by 10% to $46 billion in FY23 is poised to maintain its upward trajectory with a projected growth of 7-9% in the current financial year. This growth is not only indicative of the sector’s resilience but also presents promising prospects for Micro, Small, and Medium Enterprises playing a significant role in various key segments. Let’s delve together into the factors driving this anticipated growth and the implications for both the ITeS industry and its invaluable MSME contributors.

The Information Technology Enabled Services (ITeS) industry is projected to maintain a growth trajectory of 7-9% in the current financial year, building on a 10% growth in FY23 reaching an estimated $46 billion. Despite the global economic slowdown the industry’s healthy order book, particularly in non-discretionary spending, is expected to contribute to this growth. This positive outlook is beneficial for Micro, Small, and Medium Enterprises (MSMEs) accounting for 30-40% of the industry.

MSMEs play a crucial role in segments such as customer relationship management (CRM), transaction services, and knowledge process outsourcing (KPO). The growth is anticipated to be driven by the accelerated adoption of premium services, including a shift to non voice services in the CRM segment a surge in digital payments in transaction services, and the evolution of analytics-based offerings in the KPO segment.

Additional momentum is anticipated from the travel segment poised for double digit revenue growth further supporting the overall growth of ITeS. However, the employee base in the ITeS sector is expected to grow by 0-1% as companies adopt a cautious approach prioritizing internal programs for cost optimization and efficiency improvement with an emphasis on skill based additions over scale.

As we navigate the intricate landscape of the ITeS industry the prospects for stable growth amid a global economic slowdown paint a promising picture. The industry’s reliance on non-discretionary spending coupled with the strategic role played by MSMEs positions it for continued success. The anticipated surge in premium services adoption, digital payments.and analytics based offerings further underscores the resilience and adaptability of the ITeS sector. As we move forward the cautious approach toward workforce expansion, prioritizing skill based enhancements, reflects a strategic commitment to efficiency and optimization. In essence the ITeS industry stands not only as a beacon of technological advancement but also as a testament to its ability to navigate and thrive in challenging global economic landscapes.