Survey on Computer Software &
Information Technology Services
Exports: 2010-11*
The Reserve Bank conducts annual survey on
Software and Information Technology Services Exports for
compiling data on various aspects of computer services
exports as well as exports of Information Technology
Enabled Services (ITES) and Business Process Outsourcing
(BPO). The survey collects details on export of software
services as per the activity, type of services (on-site/off-site)
and country of destination along with the four modes of
supply, as per General Agreement on Trade in Services
(GATS).
This article presents the results of 2010-11 round of
the Software and IT Services Exports survey covering 760
companies, including most of the major companies, which
together accounted for nearly 78 per cent of the estimated
total software exports of India. During 2010-11, India’s
total export of software and IT services, as defi ned in IMF’s
BoP Manual, is estimated at around `2,170.1 billion
(US$ 47.6 billion), of which, export of computer services
accounted for 73.7 per cent and ITES/BPO services
accounted for the remaining. Considering all modes of
supply, including the services delivered by foreign affiliates
established abroad, export of software services during 2010-11 stood at around `2,547.8 billion (US$ 55.9 billion)
of which over two-third share was accounted for by the
cross-border supply mode. USA remained the major
destination for software services exports.
Highlights
-
India’s export of software services (computer
services and ITES/BPO services) during 2010-11
was around `2,170.1 billion (US$ 47.6 billion),
which was 18.1 per cent higher than in the
previous year (`1,836.9 billion).
-
While export of computer services recorded 26.2
per cent growth, growth in export of ITES/BPO
services remained flat during 2010-11.
-
Exports of computer services and ITES/BPO
services, respectively, accounted for 73.7 per cent
and 26.3 per cent of the total exports of software
services during 2010-11.
-
Public limited companies accounted for around
61.3 per cent of the total export of software
services.
-
Delivery of software services exports through offsite
mode increased by 19.4 per cent during 2010-11
and accounted for around 79.3 per cent of the total
software exports. On the other hand, on-site mode
delivery continued to record relatively lower
growth (13.6 per cent in 2010-11) and its share in
total software exports reduced to 20.7 per cent.
-
With 63.6 per cent share in India’s total export of
software services in 2010-11, USA remained the
major destination for software exports. European
countries had 23.5 per cent share, of which UK
accounted for 15.0 per cent.
-
US Dollar remained the major invoice currency for
software exports with 75.3 per cent share. Pound
Sterling and Euro had shares of 9.8 per cent and
7.0 per cent, respectively.
-
Total international trade in software services by
India, including the services delivered by foreign
affiliates established abroad, stood at `2,547.8
billion in 2010-11. Mode-1 (cross-border supply
mode) accounted for 67.4 per cent of total
international trade in software services by India.
Introduction
The Reserve Bank has been conducting
comprehensive annual surveys on ‘Software and
Information Technology Services Exports’ since 2002-03 as per the recommendations of the National Statistical
Commission (2001) and subsequent guidance from the
Technical Group on Computer Services Exports (TGCSE)
(2008). The survey collects details of export of computer
services, as defi ned in the Balance of Payments and
International Investment Position Manual – Sixth
Edition (BPM6) of the International Monetary Fund
(IMF) and the GATS Manual on Statistics of International
Trade in Services (MSITS) as well as other select
information on ITES/BPO services exports. The survey
also collects exports data as per the four modes of
supply viz., cross-border supply, consumption abroad,
commercial presence and presence of natural persons
as defined in MSITS. The previous annual round of the
survey was conducted with reference period 2009-10.
Survey Results
For the 2010-11 survey round, the schedule was
canvassed among 6,400 companies of which 760
companies, including most of the large companies,
responded to the survey. Among them 506 companies
were common with the previous round. The responding
companies together accounted for nearly 78 per cent
of the estimated total software exports during the year.
Software exports of the non-responding companies
were estimated using median exports (see Annex I for
methodological details). The Reserve Bank also collects
information on export of non-physical software (offsite)
from Indian companies, in SOFTEX forms.
Reconciliation of survey estimates of software exports
with the estimates of National Association of Software
and Services Companies (NASSCOM) and SOFTEX data
is presented in the Box item.
Software Services Exports from India
during 2010-11
Total software services exports from India during
2010-11 is estimated at `2,170.1 billion, which was 18.1
per cent higher than in the previous year (`1,836.9
billion) (Table 1). These exports are categorised under
two major heads: (i) Computer Services and (ii) ITES/
BPO Services, which had shares of 73.7 per cent and
26.3 per cent, respectively, in total export of software services during 2010-11. The surge in software services
exports during 2010-11 was led by computer services,
which recorded 26.2 per cent export growth to reach
`1,598.4 billion in 2010-11, whereas ITES/BPO services
export remained nearly flat at `571.7 billion. In
accordance, the share of computer services in total
software services exports increased to 73.7 per cent in
2010-11 (69.0 per cent in 2009-10), whereas the share
of ITES/BPO services declined to 26.3 per cent in 2010-
11 (31.0 per cent in 2009-10).
Within computer services, IT services remained
the dominant component which recorded 33.7 per cent
growth in exports, even as exports of the Software
Product Development component recorded a decline.
In the ITES/BPO services category, the decline in
exports of Engineering services during 2010-11was
squared-off by BPO services exports to make the
category export comparable with the previous year’s
level (Chart 1 and Table 1).
Table 1: Software Services Exports from
India – 2010-11 |
(` billion) |
Activity |
2009-10 |
2010-11 |
Growth (%) |
1 |
2 |
3 |
A) Computer Services |
1,266.6 |
1,598.4 |
26.2 |
Of which: i) IT services |
1,115.8 |
1,492.2 |
33.7 |
ii) Software Product
Development |
150.8 |
106.2 |
-29.6 |
B) ITES/BPO Services |
570.3 |
571.7 |
0.2 |
Of which: i) BPO Services |
431.3 |
468.7 |
8.7 |
ii) Engineering
Services |
139.0 |
103.0 |
-25.9 |
Total Export of Software Services
(A+B) |
1,836.9 |
2,170.1 |
18.1 |
Industry-wise Distribution of ITES/BPO
Services Exports
The classification given by the Department of
Information Technology (DIT-2003), Government of
India, was used for compilation of data on export of
ITES/BPO services. Export of Engineering services
declined by 25.9 per cent in 2010-11 from the level in 2009-10, while BPO services exports recorded a growth
of 8.7 per cent (Table 2).
Among the major activities in BPO services,
exports of Customer interaction services (12.2 per cent
share in total ITES/BPO services exports) declined by
32.3 per cent whereas Finance & Accounting related
services ( with 13.4 per cent share) increased by 13.1 per cent during 2010-11. Among the Engineering
services, 184.4 per cent export growth, over a low base,
was recorded in Embedded solutions and 15.7 per cent
in Product Design Engineering, whereas exports of
Industrial automation and Enterprise Asset Management
and Other Engineering Service registered a decline.
Other BPO service (including Legal services, Animation,
Gaming, Pharmaceuticals & biotechnology services etc.),
which constituted more than half of the total ITES/BPO
services exports, recorded a substantial rise of 26.3 per
cent during the year.
Table 2: Activity-wise Distribution of ITES/BPO Services Exports |
Activity |
2009-10 |
2010-11 |
Annual
Growth in
` (%) |
Amount (in billion) |
Share (%) |
Amount (in billion) |
Share (%) |
` |
US$ * |
` |
US$ * |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
BPO Services |
431.33 |
9.10 |
75.6 |
468.64 |
10.28 |
82.0 |
8.7 |
Customer interaction services |
102.74 |
2.17 |
18.0 |
69.60 |
1.53 |
12.2 |
-32.3 |
Finance and Accounting, auditing, book keeping and tax consulting services |
67.63 |
1.43 |
11.9 |
76.49 |
1.68 |
13.4 |
13.1 |
HR Administration |
7.63 |
0.16 |
1.3 |
2.95 |
0.06 |
0.5 |
-61.3 |
Procurements and logistics |
1.51 |
0.03 |
0.3 |
2.75 |
0.06 |
0.5 |
82.1 |
Medical transcription |
2.37 |
0.05 |
0.4 |
3.45 |
0.08 |
0.6 |
45.6 |
Document Management |
1.60 |
0.03 |
0.3 |
3.54 |
0.08 |
0.6 |
121.3 |
Content development, management and publishing |
5.94 |
0.13 |
1.0 |
4.35 |
0.10 |
0.8 |
-26.8 |
Other BPO service |
241.91 |
5.10 |
42.4 |
305.51 |
6.69 |
53.4 |
26.3 |
Engineering Services |
138.98 |
2.93 |
24.4 |
103.03 |
2.26 |
18.0 |
-25.9 |
Embedded Solutions |
4.79 |
0.10 |
0.8 |
13.62 |
0.30 |
2.4 |
184.4 |
Product Design Engineering (mechanical,electronic excluding software) |
42.71 |
0.90 |
7.5 |
49.41 |
1.08 |
8.6 |
15.7 |
Industrial automation and enterprise asset management |
14.61 |
0.31 |
2.6 |
3.13 |
0.07 |
0.6 |
-78.6 |
Other Engineering service |
76.87 |
1.62 |
13.5 |
36.87 |
0.81 |
6.4 |
-52.9 |
Total |
570.33 |
12.03 |
100.0 |
571.67 |
12.54 |
100.0 |
0.2 |
* Using annual average Rupee/Dollar exchange rate. |
Organisation-wise Distribution of
Software Services Exports
The public limited companies accounted for a
higher share of 61.3 per cent of the total software
services exports in 2010-11 (58.1 per cent share in 2009-10). During 2010-11, software services export by public
limited companies increased by 24.7 per cent to
`1,330.7 billion, whereas software exports by private
limited companies recorded a lower growth of 15.8 per
cent to `836.3 billion (Table 3).
Table 3: Organisation-wise Distribution of Software Services Exports |
Types of Organisation |
2009-10 |
2010-11 |
Annual
Growth in ` (%) |
Amount (in billion) |
Share (%) |
Amount (in billion) |
Share (%) |
` |
US$ * |
` |
US$ * |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Private Limited Companies |
722.3 |
15.2 |
39.3 |
836.3 |
18.3 |
38.5 |
15.8 |
Public Limited Companies |
1,066.7 |
22.5 |
58.1 |
1,330.7 |
29.2 |
61.3 |
24.7 |
Others |
47.9 |
1.0 |
2.6 |
3.1 |
0.1 |
0.2 |
-93.5 |
Total |
1,836.9 |
38.7 |
100.0 |
2,170.1 |
47.6 |
100.0 |
18.1 |
* For footnote please refer to Table 2. |
Country-wise Distribution of Software
Services Exports
United States remained the major destination for
software services exports from India. United States and
Canada together accounted for 65.0 per cent of total
software services exports in 2010-11, registering 24.0
per cent growth over the previous year. Though the
share of software services exports to European
countries declined to 23.5 per cent in 2010-11 from 26.5
per cent in 2009-10, it recorded 4.4 per cent rise in value
terms (Table 4 and Chart 2), which was mainly led by
42.3 per cent increase in export of software services to
United Kingdom. Software exports to Asian countries
recorded 24.7 per cent rise in value terms and the share
of the region increased marginally to 5.1 per cent from 4.9 per cent in 2009-10. There was a 15.7 per cent
decline in software services exports to the South Asia.
Software exports to Australia and New Zealand together
registered 40.9 per cent growth in 2010-11 with their
share increased to 2.7 per cent from 2.3 per cent in
2009-10.
Currency Composition of Software
Services Exports
With 75.3 per cent share, the US Dollar (USD)
remained the major currency of invoicing the software
exports while invoicing in terms of Euro accounted for
7.0 per cent. The value of invoicing in USD and Euro
increased by 16.8 per cent and 20.3 per cent, respectively,
in 2010-11. The share of Pound Sterling (GBP) was 9.8
per cent and recorded 11.6 per cent rise in value terms.
Table 4: Destination of Software Services Exports |
Activity |
2009-10 |
2010-11 |
Annual
Growth in ` (%) |
Amount (in billion) |
Share (%) |
Amount (in billion) |
Share (%) |
` |
US$ * |
` |
US$ * |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
USA & Canada |
1,137.8 |
24.0 |
61.9 |
1,410.4 |
30.9 |
65.0 |
24.0 |
Europe |
487.1 |
10.3 |
26.5 |
508.4 |
11.1 |
23.5 |
4.4 |
of which: UK |
228.6 |
4.8 |
12.4 |
325.4 |
7.1 |
15.0 |
42.3 |
Asia |
89.7 |
1.8 |
4.9 |
111.9 |
2.5 |
5.1 |
24.7 |
of which: East Asia |
70.0 |
1.4 |
3.8 |
87.4 |
1.9 |
4.0 |
24.9 |
West Asia |
14.6 |
0.3 |
0.8 |
20.2 |
0.5 |
0.9 |
38.4 |
South Asia |
5.1 |
0.1 |
0.3 |
4.3 |
0.1 |
0.2 |
-15.7 |
Australia & New Zealand |
42.1 |
0.9 |
2.3 |
59.3 |
1.3 |
2.7 |
40.9 |
Other countries |
80.2 |
1.7 |
4.4 |
80.1 |
1.8 |
3.7 |
-0.1 |
Total |
1,836.9 |
38.7 |
100.0 |
2,170.1 |
47.6 |
100.0 |
18.1 |
* For footnote please refer to Table 2. |
The share of Australian Dollar (AUD) and Indian Rupee
(INR) was low but they recorded high growth in 2010-11
(Table 5 and Chart 3).
Table 5: Currency composition of Invoice –
Software Services Exports |
Currency |
2009-10 |
2010-11 |
Annual
Growth
in ` (%) |
Amount
(in billion) |
Share
(%) |
Amount
(in billion) |
Share
(%) |
` |
US$ * |
` |
US$ * |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
USD |
1,398.9 |
29.5 |
76.2 |
1,633.4 |
35.8 |
75.3 |
16.8 |
EUR |
126.4 |
2.7 |
6.9 |
152.0 |
3.3 |
7.0 |
20.3 |
GBP |
190.8 |
4.0 |
10.4 |
212.9 |
4.7 |
9.8 |
11.6 |
AUD |
34.7 |
0.7 |
1.9 |
63.6 |
1.4 |
2.9 |
83.3 |
INR |
20.3 |
0.4 |
1.1 |
28.3 |
0.6 |
1.3 |
39.4 |
Other Currencies |
65.8 |
1.4 |
3.6 |
79.9 |
1.8 |
3.7 |
21.4 |
Total |
1,836.9 |
38.7 |
100.0 |
2,170.1 |
47.6 |
100.0 |
18.1 |
* For footnote please refer to Table 2. |
Software Services Exports – Type of
Service
Software services are exported through both onsite
and off-site routes, the latter accounting for
dominant share (79.3 per cent) in total software
exports. During 2010-11, export growth of on-site services (13.6 per cent) was lower than the growth in
off-site services (19.4 per cent) (Table 6).
Table 6: Software Services Exports –
Type of Services-wise |
Type of
Services |
2009-10 |
2010-11 |
Annual
Growth
in ` (%) |
Amount
(in billion) |
Share
(%) |
Amount
(in billion) |
Share
(%) |
` |
US$ * |
` |
US$ * |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
On-site Services ((Mode 4 |
396.2 |
8.3 |
21.6 |
450.1 |
9.9 |
20.7 |
13.6 |
Off-site Services
(Mode 1 &
(Mode 2 |
1,440.7 |
30.4 |
78.4 |
1,720.0 |
37.7 |
79.3 |
19.4 |
Total |
1,836.9 |
38.7 |
100.0 |
2,170.1 |
47.6 |
100.0 |
18.1 |
* For footnote please refer to Table 2. |
Size-wise Classification of Software
Services Exports
Large companies having export size of `1 billion
and above accounted for the 94.6 per cent of total
software services exports in 2010-11. The share of offsite
services delivered by the large companies was 72.1
per cent of their total software exports, in case of smaller companies, the said share was more than 90
per cent (Table 7).
Table 7: Software Services Exports in 2010-11 – Export Size & Other Characteristics |
(per cent) |
Export Size
(` million) |
Share in Exports |
Destination of Exports |
Types of Exports |
USA & Canada |
European Countries |
Others Countries |
On-site Services |
Off-site Services |
1 |
2 |
3 |
4 |
5 |
6 |
< 10 |
0.1 |
71.6 |
11.9 |
16.5 |
3.3 |
96.7 |
10 – 100 |
0.7 |
64.8 |
18.4 |
16.8 |
6.0 |
94.0 |
100 – 1000 |
4.6 |
65.7 |
23.1 |
11.2 |
2.7 |
97.3 |
>= 1000 |
94.6 |
65.0 |
23.5 |
11.5 |
27.9 |
72.1 |
All Companies |
100.0 |
65.0 |
23.4 |
11.6 |
26.6 |
73.4 |
Software Business as per Modes of Supply
As per MSITS (2002) guidelines, international trade
in services can be conducted through four different
modes, viz.,
(i) transactions between resident and nonresident
covering Mode-1 (cross-border
supply), Mode-2 (consumption abroad) and
Mode-4 (presence of natural person), and
(ii) services provided locally by the affiliates
established abroad, i.e., Mode-3 (commercial
presence).
However, as per the BoP Manual, foreign affiliates
established abroad are treated as the domestic units in
the host economy and hence the services delivered by
them are not considered as the exports of the home
country. To this extent, data on services exports in BoP
differs from those in the Foreign Affiliates Trade
Statistics (FATS).
In the present survey, the software services trade
data are collected on all the four modes of supply. The
total international trade in software services by India
through all modes stood at `2,547.8 billion in 2010-11.
Mode-1 accounted for 67.4 per cent of total international
trade in software services by India whereas the shares
of Mode-4 and Mode-3 were also double-digit but Mode-
2 accounted for a negligible share (Table 8). Small
companies delivered 82.3 to 91.0 per cent of their
software services exports through Mode-1(cross-border
supply). This mode had nearly two-third share in large
companies’ software services exports.
Software Business of Subsidiaries/
Associates Abroad
The survey also collected the information on the
software business of foreign subsidiaries/associates of
Indian companies (foreign affiliates), under the heads
of software business done in host country, locally, to
India and to other countries, for the purpose of Foreign
Affiliates Trade in Services (FATS). Total software
business of the Indian-owned foreign affiliates (excluding the services made available to India) was
valued at `415.8 billion during 2010-11 (Table 9).
Software services provided by the Indian-owned
foreign affiliates were mainly in the respective host
county. Indian companies were classified into four
major activity categories, viz., IT services, Software
product development, BPO services and Engineering
services. Companies providing a combination of these
services were classifi ed under ‘Others’. These multiservice
providing companies remained the major source
for generating software business outside India.
Table 8: International Trade of Indian Software Services in 2010-11 |
Export Size
(` million) |
Amount (` billion) |
Share in Total (per cent) |
Mode 1 |
Mode 2 |
Mode 3 |
Mode 4 |
Total |
Mode 1 |
Mode 2 |
Mode 3 |
Mode 4 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
< 10 |
1.4 |
0.1 |
0.2 |
– |
1.7 |
82.3 |
5.9 |
11.8 |
– |
10 – 100 |
14.8 |
0.2 |
1.3 |
0.5 |
16.8 |
88.1 |
1.2 |
7.7 |
3.0 |
100 – 1000 |
104.7 |
1.3 |
7.3 |
1.9 |
115.2 |
91.0 |
1.1 |
6.3 |
1.6 |
>= 1000 |
1,597.5 |
0.0 |
368.9 |
447.7 |
2,414.1 |
66.2 |
0.0 |
15.3 |
18.5 |
All Companies |
1,718.4 |
1.6 |
377.7 |
450.1 |
2,547.8 |
67.4 |
0.1 |
14.8 |
17.7 |
Mode 1: Cross Border Supply; Mode 2: Consumption Abroad; Mode 3: Commercial Presence; Mode 4: Presence of Natural Persons
–: negligible |
Table 9: Software Business by Foreign Affiliates
of Indian companies in 2010-11
(Activity-wise Distribution) |
(` billion) |
Activity |
Software business by
Foreign Affiliates |
Locally |
To India |
Other
Countries |
1 |
2 |
3 |
IT services |
17.88 |
0.18 |
1.63 |
Software Product Development |
4.70 |
0.01 |
0.64 |
BPO Services |
15.23 |
0.55 |
9.11 |
Engineering Services |
1.71 |
0.26 |
0.00 |
Other services |
338.20 |
4.37 |
26.73 |
Total |
377.72 |
5.37 |
38.11 |
Indian-owned affiliates in USA contributed over
two-third of business done by the foreign affiliates.
Among the remaining, Indian software companies in
United Kingdom, Singapore, Canada and Germany
accounted for 6.8 per cent, 3.4 per cent, 2.7 per cent
and 2.5 per cent, respectively in total software business
of the Indian-owned foreign affiliates (Table 10).
Table 10: Software business by Foreign Affiliates
of Indian Companies in 2010-11
(Country-wise Distribution) |
(` 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 United |
67.6 |
271.93 |
4.40 |
8.17 |
Kingdom |
6.8 |
26.40 |
0.87 |
1.24 |
Singapore |
3.4 |
8.87 |
0.03 |
5.22 |
Germany |
2.5 |
10.17 |
0.00 |
0.50 |
Canada |
2.7 |
11.44 |
0.00 |
0.10 |
Japan |
0.6 |
2.68 |
0.00 |
0.05 |
Malaysia |
0.2 |
0.82 |
0.00 |
0.17 |
Australia |
1.2 |
4.97 |
0.00 |
0.00 |
Other Countries |
15 |
40.44 |
0.07 |
22.66 |
Total |
100 |
377.72 |
5.37 |
38.11 |
Box: Comparison of survey results with NASSCOM and Softex data
The Reserve Bank of India (RBI) collects the
information of software exports through SOFTEX
forms filed by software companies which accounts
for only non-physical offsite software exports. As per
the SOFTEX forms filed by Indian companies to the
RBI, non-physical (off-site) software exports stood at `1,569.6 billion in 2010-11 which does not include
on-site software exports. Adding the on-site software
exports of `450.1 billion, as reported in the survey,
the total software services exports in 2010-11 worked
out to `2,019.7 billion.
RBI publishes the software exports data in BoP
using reporting by Authorised Dealers and STPI
and also the software exports data released by the
NASSCOM. NASSCOM publishes exports of IT-BPO
industry which is based on the global software
business of the Indian software companies, i.e.,
software exports of Indian companies together with
the software business of their overseas subsidiaries.
Accordingly, in order to make the data generated
through the RBI’s survey on Software & ITES/BPO
Services Exports comparable with NASSCOM data,
the software business of overseas subsidiaries of
Indian companies have been added to the estimated
software services exports of India, based on the
survey.
Reconciliation of Software Exports of India during 2010-11 |
(` billion) |
Software exports
as per NASSCOM
(Global business) |
Software Exports based on annual survey |
Software Exports based on annual survey and Softex data |
Indian companies
(Mode 1, Mode 2 &
Mode 4) |
Subsidiaries
abroad (Mode
3 & export of
Subsidiaries other
than India) |
Global business |
Offsite Nonphysical
software
exports based on
Softex data (Mode
1 & Mode 2) |
Onsite software
exports based on
survey (Mode 4) |
Total Software
Exports of India |
1 |
2 |
3 |
4=(2)+(3) |
4 |
5 |
6=(5)+(6) |
2,689.0 |
2,170.1 |
415.8 |
2,585.9 |
1,569.6 |
450.1 |
2,019.7 |
Based on the survey, export of software services from
India in 2010-11 was estimated at `2,170.1 billion
(US$ 47.6 billion) and the software business done
by the Indian subsidiaries abroad in 2010-11 was
estimated at `415.8 billion (US$ 9.1 billion). Thus,
the global software export of India based on the
survey was `2,585.9 billion (US$ 56.7 billion) as
against `2,689.0 billion (US$ 59.0 billion) published by the NASSCOM. The software business done by the
overseas subsidiaries of Indian companies accounted
for 16.1 per cent of the global software business,
estimated through the survey.
The survey results are quite comparable with the
software exports data released by NASSCOM and
also with the software exports data collected through
Softex forms by RBI.
References:
1. International Monetary Fund (2008): Balance of
Payments and International Investment Position
Manual – Sixth Edition (BPM6), Washington, D.C.
2. Government of India (2001): Report of the National
Statistical Commission (NSC), New Delhi, August.
3. Government of India (2003): IT-Enabled Services;
Ministry of Information Technology.
4. Reserve Bank of India (2003): Report of the Technical
Group on Re-examination of Data Reporting System
on Software Exports, Mumbai
5. Reserve Bank of India (2011): Survey on Computer
Software & Information Technology Services
Exports: 2009-10, Reserve Bank of India Bulletin,
June issue.
6. United Nations (2002): GATS Manual on Statistics
of International Trade in Services (MSITS), Geneva.
Annex I: Methodology for estimation of Software Exports of Non-responding companies
In total, 760 companies responded to the annual
comprehensive survey covering all major companies.
So, the non-responded companies were the smaller
companies. Further, it was observed from data
received from the responded companies that onsite
export was mainly reported by the major companies.
So while estimating the exports done by the nonresponded
companies, only offsite export was
considered. As no information was available about
the business activity of the non-responded
companies, these were classified into 4 groups viz.,
IT services, ITES/BPO services, Engineering services
and Software Product Development based on the
observed proportion. Also, the distribution of export
in all the four groups i.e., IT services, BPO, Engineering
and Software Product Development was highly
positively skewed. So median exports done by each
of these groups was used for estimating the exports
done by respective group of business. The detailed
methodology for estimation of exports is given
below. Using the methodology, the software services
exports of non-respondent companies was estimated
to the tune of `479 billion (around 22.0 per cent of
total software services exports). To estimate other
distributional patterns of exports, observed
proportions were used.
Annual survey on Software and IT Services Exports
for the period 2010-11 was launched canvassing
around 6,400 Software and ITES/BPO companies. Of
these, 876 companies responded to the survey which
includes 116 NIL and closed companies. All the major
software and IT/BPO companies responded to the
survey. Using the observed proportion, number of
NIL and closed companies have been estimated from
5,524 non-responded companies and software exports have been estimated for the remaining 4,793
non-responded companies, using the following
method:
I. Based on the ITES/BPO reported activity,
companies have been classified in four groups,
viz.; IT Services, ITES/BPO Services, Engineering
Services and Software Product Services (having
100 per cent business under respective group).
II. For classifying the other companies having
combination of these as their business activity,
reported proportions of their exports done in
IT, BPO, Engineering and Software Product
services have been used.
III. Based on the reported data, it was observed that
'On-site' software export was primarily reported
by the major companies. Therefore, only
offshore software exports component was used
for estimating software export of nonresponded
companies.
IV. As the observed distribution of exports was
highly positively skewed in each of these
groups, median was used for estimating
software exports in each group.
Estimated software exports for ith group of nonrespondent
companies
Then, the total software exports of India has
been compiled as the sum of reported software
exports and the estimated software export for nonresponded
companies in each of the four groups.
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