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Date : Dec 08, 2017
Survey on Computer Software & Information Technology Enabled Services Exports: 2016-17 – Data Release1

Today, the Reserve Bank released the results of the 2016-17 round of the annual survey on “computer software and information technology enabled services (ITES) exports”. The survey provides information on various characteristics of India’s exports of software services (e.g., type of activity; on-site/off-site nature of services; country of destination; and modes of supply). The survey schedule is given in the Annex.

For the 2016-17 round of the survey, 7,506 IT companies were approached, of which 1,362 companies (including most of the large companies) responded. The responding companies accounted for 81.2 per cent of the total software exports during the year. Exports of the remaining companies were estimated by using the distribution pattern after classifying them in four groups, (viz., IT services; business process outsourcing (BPO) services; engineering services; and software product development).

Highlights:

  • India’s total export of software services (excluding exports through commercial presence) increased by 10.3 per cent in US $ terms. (Table 1)

  • Exports of computer services remained the dominant component, with private limited companies and public limited companies holding equal shares in exports during the year. (Tables 2 & 3)

  • USA and Canada remained the top destinations of India’s export of software services, followed by Europe in which UK accounted for nearly half. (Table 4)

  • The US dollar was the principal invoicing currency, accounting for 73 per cent of software exports, followed by the pound sterling and the euro. (Table 5)

  • The off-site mode remained the preferred mode of delivery. (Tables 6)

  • The share of export of software services through mode-1 (cross-border supply) and mode-3 (commercial presence) increased during the year and together accounted for 85.9 per cent of software exports. (Tables 7)

  • Software exports by foreign affiliates of Indian companies showed an impressive growth of 17.0 percent during 2016-17, their major presence being in the USA and the UK. (Tables 8 and 9)

  • Including services delivered by foreign affiliates, total exports of software services by India was placed at US$ 120.4 billion; excluding foreign affiliates, exports are estimated at US$ 97.1 billion. (Tables 1 and 8)

Ajit Prasad
Assistant Adviser

Press Release : 2017-2018/1574


Table 1: Software Services Export from India
Activity   2015-16   2016-17
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
A). Computer Services 4,104.4 62.7 71.2 4506.7 67.2 69.2
Of which: i) IT services 3,862.8 59.0 67.0 4300.0 64.1 66.0
             ii) Software Product Development 241.6 3.7 4.2 206.7 3.1 3.2
B). ITES/BPO Services 1,658.7 25.3 28.8 2003.3 29.9 30.8
Of which: i) BPO Services 1,336.8 20.4 23.2 1539.0 23.0 23.7
             ii) Engineering Services 321.9 4.9 5.6 464.3 6.9 7.1
Total Export of Software Services (A+B) 5,763.1 88.0 100.0 6510.0 97.1 100.0
Note: The sum of components may differ from totals, due to rounding off. This is applicable for other tables also.
* Using annual average Rupee/ Dollar exchange rate. This is applicable for all other tables also.

Table 2: Industry-wise Distribution of ITES/BPO Services Exports
Activity 2015-16 2016-17
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
BPO Services 1,336.8 20.4 80.6 1539.0 23.0 76.8
Customer interaction services 57.9 0.9 3.5 99.9 1.5 5.0
Finance and Accounting, auditing, book keeping and tax consulting services 185.0 2.8 11.2 206.2 3.1 10.3
HR Administration 19.9 0.3 1.2 12.7 0.2 0.6
Procurements and logistics 7.7 0.1 0.5 7.2 0.1 0.4
Medical transcription 13.6 0.2 0.8 15.7 0.2 0.8
Document Management 6.8 0.1 0.4 7.0 0.1 0.3
Content development and management and publishing 12.8 0.2 0.8 17.0 0.3 0.8
Other BPO services 1,033.1 15.8 62.2 1173.3 17.5 58.6
Engineering Services 321.9 4.9 19.4 464.3 6.9 23.2
Embedded Solutions 72.7 1.1 4.3 74.5 1.1 3.7
Product Design Engineering (mechanical, electronics excluding software) 84.4 1.3 5.1 155.0 2.3 7.7
Industrial automation and enterprise asset management 0.9 0.0 0.1 1.1 0.0 0.1
Other Engineering services 163.9 2.5 9.9 233.7 3.5 11.7
Total 1,658.7 25.3 100.0 2003.3 29.9 100.0

Table 3: Organisation-wise Distribution of Software Services Exports
Types of Organisation 2015-16 2016-17
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
Private Limited Company 2,553.3 39.0 44.3 3,203.0 47.8 49.2
Public Limited Company 3,134.1 47.8 54.4 3,275.1 48.8 50.3
Others 75.7 1.2 1.3 31.9 0.5 0.5
Total 5,763.1 88.0 100.0 6,510.0 97.1 100.0

Table 4: Destination of Software Services Exports
Activity 2015-16 2016-17
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
USA & Canada 3,554.7 54.3 61.7 3953.9 59.0 60.3
Europe 1,352.0 20.7 23.5 1516.3 22.6 23.1
    of which UK 684.1 10.4 11.9 729.2 10.9 11.1
Asia 487.0 7.4 8.4 655.6 9.8 10.7
    of which East Asia 412.6 6.3 7.2 483.9 7.2 8.1
                 West Asia 65.7 1.0 1.1 74.8 1.1 1.1
                 South Asia 8.6 0.1 0.2 96.9 1.5 1.5
Australia & New Zealand 198.2 3.0 3.4 216.2 3.2 3.3
Other countries 171.2 2.6 3.0 168.0 2.5 2.6
Total 5,763.1 88.0 100.0 6510.0 97.1 100

Table 5: Currency Composition of Invoice ̶ Software Services Exports
Currency 2015-16 2016-17
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
USD 4,261.0 65.1 73.9 4754.3 70.9 73.0
GBP 539.3 8.2 9.4 519.6 7.8 8.0
EUR 438.0 6.7 7.6 466.6 7.0 7.2
AUD 177.5 2.7 3.1 191.0 2.8 2.9
INR 75.0 1.1 1.3 234.9 3.5 3.6
Other Currencies 272.3 4.2 4.7 343.6 5.1 5.3
Total 5,763.1 88.0 100.0 6510.0 97.1 100.0

Table 6: Software Services Exports – Type of Services-wise
Type of Services 2015-16 2016-17
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
On-site Services 1,145.7 17.5 19.9 1121.2 16.7 17.2
Off-site Services 4,617.4 70.5 80.1 5388.8 80.4 82.8
Total 5,763.1 88.0 100.0 6510.0 97.1 100.0

Table 7: Mode-wise Exports of Software Services
Type of Mode Amount (₹ billion) Share in Total (per cent)
2015-16 2016-17 2015-16 2016-17
(1) (2) (3) (4)
Mode 1 (cross-border supply) 4,604.8 5374.5 64.8 66.5
Mode 2 (consumption abroad) 12.6 14.3 0.2 0.2
Mode 3 (commercial presence) 1,339.7 1567.8 18.9 19.4
Mode 4 (presence of natural person) 1,145.7 1121.2 16.1 13.9
Total 7,102.8 8077.8 100.0 100.0

Table 8: Software Business by Foreign Affiliates of Indian Companies ─ Activity Distribution
(₹ billion)
Activity 2016-17
Locally To India Other Countries
(1) (2) (3)
IT services 51.0 5.2 6.0
Software Product Development 0.8 0.6 14.9
BPO Services 70.1 2.3 12.0
Engineering Services 5.6 0.3 0.1
Othe services 1,440.30 93.0 112.1
Total (₹ billion) 1,567.80 101.4 145.1
Total (US$ billion*) 23.4 1.5 2.2

Table 9: Software Business by Foreign Affiliates of Indian Companies - Country Distribution -2016-17
(₹ billion)
Country Share in Total Software business by foreign affiliates (%) Software business by foreign affiliates
Locally To India Other Countries
(1) (2) (3) (4)
USA 65.0 1064.8 73.9 39.8
United Kingdom 6.7 101.3 2.4 18.2
Canada 3.6 62.5 0.0 1.9
Germany 3.3 48.6 7.2 4.0
Singapore 2.9 40.4 1.1 11.9
Netherlands 2.7 40.1 0.1 9.4
Other Countries 15.8 210.1 16.7 59.9
Total 100.0 1567.8 101.4 145.1

1 The previous data release in the series, covering 2015-16 survey round, was put in public domain on October 20, 2016.


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