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Date : Dec 10, 2018
Survey on Computer Software & Information Technology Enabled Services Exports: 2017-18 – Data Release 1

Today, the Reserve Bank released the results of the 2017-18 round of its annual survey on exports of computer software and information technology enabled services (ITES). 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 2017-18 round of the survey, 7,434 IT companies were approached, of which 1,546 companies (including most of the large companies) with a share of 81.4 per cent in total software exports during the year responded. Exports of the remaining companies were estimated by imposing the distribution pattern of the reporting companies (Table 1).

Highlights:

  • India’s total exports of software services (excluding exports through overseas commercial presence) increased by 11.6 per cent to US $ 108.4 billion in 2017-18. (Table 2)

  • Computer services remained the dominant component of total exports of software services; there has been a marginal increase in the share of BPO services. (Table 3)

  • Exports of software services by private limited companies exceeded those of public limited companies for the first time in the survey’s history. (Table 4)

  • USA and Canada together accounted for 60 per cent of exports of software services, followed by Europe, where the UK was the major export destination. (Table 5)

  • The US dollar was the invoicing currency for nearly three-fourth of the exports of software services, followed by the euro and the pound sterling. (Table 6)

  • The off-site mode remained the preferred mode of delivery; the share of on-site services declined during 2017-18 (Table 7)

  • The share of exports of software services through the cross-border supply mode increased during the year; other three modes of delivery (viz., consumption abroad; commercial presence; and presence of natural persons) together accounted for 30 per cent. (Table 8)

  • Total exports of software services by India (including of services delivered by foreign affiliates of Indian companies, which were mainly present in the US and the UK) during 2017-18 are estimated at US$ 131.3 billion. (Tables 8, 9 and 10)

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1341


Table 1: Survey Response and Final Estimates for 2017-18 – A Snapshot
(₹ billion)
Item Reported * Final Estimates **
(1) (2)
1. No. of companies 1,546 7,434
2.Total Exports of Software Services 5,742.2 7,051.2
2.1 IT services 3,832.0 4,572.8
2.2 Software Product Development 183.7 237.1
2.3 BPO Services 1,303.7 1,739.1
2.4 Engineering Services 422.8 502.2
3. Total Exports of Software Services
(including commercial presence)
7,227.3 8,536.3
3.1 Mode 1 (cross-border supply) 4,832.9 5,934.6
3.2 Mode 2 (consumption abroad) 7.6 9.3
3.3 Mode 3 (commercial presence) 1,485.1 0.0
3.4 Mode 4 (presence of natural person) 901.7 1,107.3
* Response by the largest 20 companies ensured industry representation in the survey coverage.
** Details of estimation methodology are published in the article entitled ‘Survey on Computer Software and Information Technology Enabled Services Exports: 2016-17’ published in March 2018 issue of the RBI Bulletin.

Table 2: Software Services Export from India
Activity 2016-17 2017-18
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
A). Computer Services 4,506.7 67.2 69.2 4,809.9 74.0 68.2
Of which: i) IT services 4,300.0 64.1 66.0 4,572.8 70.3 64.9
               ii) Software Product Development 206.7 3.1 3.2 237.1 3.6 3.4
B). ITES/BPO Services 2,003.3 29.9 30.8 2,241.3 34.5 31.8
Of which: i) BPO Services 1,539.0 23.0 23.7 1,739.1 26.7 24.7
               ii) Engineering Services 464.3 6.9 7.1 502.2 7.7 7.1
Total Export of Software Services (A+B) 6,510.0 97.1 100.0 7,051.2 108.4 100.0
Note: The sum of components may differ from totals, due to rounding off.
* Using annual average Rupee/ Dollar exchange rate.
These footnotes are applicable for all other tables also.

Table 3: Industry-wise Distribution of ITES/BPO Services Exports
Activity 2016-17 2017-18
₹ billion US $ billion Share (%) ₹ billion US $ billion Share (%)
(1) (2) (3) (4) (5) (6)
BPO Services 1,539.0 23.0 76.8 1,739.1 26.7 77.6
Customer interaction services 99.9 1.5 5.0 178.5 2.7 8.0
Finance and Accounting, auditing, book keeping and tax consulting services 206.2 3.1 10.3 275.6 4.2 12.3
HR Administration 12.7 0.2 0.6 14.0 0.2 0.6
Procurements and logistics 7.2 0.1 0.4 8.7 0.1 0.4
Medical transcription 15.7 0.2 0.8 9.1 0.1 0.4
Document Management 7.0 0.1 0.3 8.9 0.1 0.4
Content development and management and publishing 17.0 0.3 0.8 17.0 0.3 0.8
Other BPO services 1,173.3 17.5 58.6 1,227.3 18.9 54.8
Engineering Services 464.3 6.9 23.2 502.2 7.7 22.4
Embedded Solutions 74.5 1.1 3.7 79.5 1.2 3.5
Product Design Engineering (mechanical, electronics excluding software) 155 2.3 7.7 158.8 2.4 7.1
Industrial automation and enterprise asset management 1.1 0.0 0.1 10.5 0.2 0.5
Other Engineering services 233.7 3.5 11.7 253.4 3.9 11.3
Total 2,003.3 29.9 100.0 2,241.3 34.5 100.0

Table 4: Organisation-wise Distribution of Software Services Exports
Types of Organisation 2016-17 2017-18
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
Private Limited Company 3,203.0 47.8 49.2 3,647.1 56.1 51.7
Public Limited Company 3,275.1 48.8 50.3 3,352.2 51.5 47.5
Others 31.9 0.5 0.5 51.9 0.8 0.7
Total 6,510.0 97.1 100.0 7,051.2 108.4 100.0

Table 5: Software Services Exports – Major Destination
Activity 2016-17 2017-18
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
USA & Canada 3,953.9 59.0 60.3 4,330.8 66.6 61.4
Europe 1,516.3 22.6 23.1 1,695.1 26.1 24.0
    of which UK 729.2 10.9 11.1 810.2 12.5 11.5
Asia 655.6 9.8 10.7 595.8 9.2 8.5
    of which East Asia 483.9 7.2 8.1 485.1 7.5 6.9
           West Asia 74.8 1.1 1.1 59.2 0.9 0.8
           South Asia 96.9 1.5 1.5 51.5 0.8 0.7
Australia & New Zealand 216.2 3.2 3.3 239.0 3.7 3.4
Other countries 168.0 2.5 2.6 190.4 2.9 2.7
Total 6,510.0 97.1 100.0 7,051.2 108.4 100.0

Table 6: Software Services Exports - Currency Composition of Invoice
Currency 2016-17 2017-18
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
USD 4,754.3 70.9 73.0 5,125.6 78.8 72.7
EUR 466.6 7.0 7.2 550.1 8.5 7.8
GBP 519.6 7.8 8.0 488.6 7.5 6.9
INR 234.9 3.5 3.6 323.0 5.0 4.6
AUD 191.0 2.8 2.9 209.9 3.2 3.0
Other Currencies 343.6 5.1 5.3 354.1 5.4 5.0
Total 6,510.0 97.1 100.0 7,051.2 108.4 100.0

Table 7: Software Services Exports – Type of Services-wise
Type of Services 2016-17 2017-18
₹ billion US $ billion* Share (%) ₹ billion US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
On-site Services 1,121.2 16.7 17.2 1,107.3 17.0 15.7
Off-site Services 5,388.8 80.4 82.8 5,943.9 91.4 84.3
Total 6,510.0 97.1 100.0 7,051.2 108.4 100.0

Table 8: Mode-wise Exports of Software Services
Type of Mode Amount
(₹ billion)
Share in Total
(per cent)
2016-17 2017-18 2016-17 2017-18
(1) (2) (3) (4)
Mode 1 (cross-border supply) 5,374.5 5,934.6 66.5 69.5
Mode 2 (consumption abroad) 14.3 9.3 0.2 0.1
Mode 3 (commercial presence) 1,567.8 1,485.1 19.4 17.4
Mode 4 (presence of natural person) 1,121.2 1,107.3 13.9 13.0
Total 8,077.8 8,536.3 100.0 100.0

Table 9: Software Business by Foreign Affiliates of Indian Companies during 2017-18 ─ Activity Distribution
(amount in ₹ billion)
Activity Locally To India Other Countries
(1) (2) (3)
IT services 51.0 6.1 20.1
Software Product Development 13.8 0.8 6.2
BPO Services 87.9 1.5 8.9
Engineering Services 5.8 0.0 0.0
Other services 1,326.7 96.2 128.9
Total (₹ billion) 1,485.1 104.6 164.1
Total (US $ billion*) 22.8 1.6 2.5

Table 10: Software Business by Foreign Affiliates of Indian Companies during 2017-18 Country Distribution
(amount in ₹ 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 64.2 1,011.7 77.7 35.5
United Kingdom 7.2 68.7 1.6 56.1
Canada 3.5 57.9 0.3 3.8
Germany 4.0 57.5 7.1 5.1
Singapore 2.6 36.1 1.3 8.5
Netherlands 3.9 50.3 0.8 17.0
Other Countries 14.6 202.9 15.7 38.0
Total 100.0 1,485.1 104.6 164.1

1 The previous data release in the series, covering 2016-17 survey round, was put in public domain on December 08, 2017.


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