India’s outsourced software industry grows 9.5 percent to reach $239 billion
Software product development industry shrinks a little, but if AI has dented prospects, it’s not in these numbers
Indian IT services companies reported a 9.5% increase in revenue for the FY 24/25 financial year, reaching a total of $239.3 billion. This growth is 9.5% higher than the previous financial year. According to the Reserve Bank of India's annual Survey on Computer Software and Information Technology Enabled Services, India's software product development sector saw a decline in revenue, earning just $56.5 billion, a reduction of over $1 billion.
However, other categories like IT services and BPO showed growth. The US market was the largest buyer of Indian IT services, purchasing $119.7 billion worth of services, up from $108.3 billion in the previous year. The UK was the second-largest market, with $34 billion in sales, up from $31.8 billion. Most of the services measured (91.7% or $203 billion) were not performed on clients' premises.
India's tech services giants have expressed concerns about potential "AI deflation," but the survey suggests this has not yet occurred. India is ranked as the world's second-largest exporter of IT services, behind only Ireland. The USA, China, and the UK rounded out the top five tech services exporters.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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