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Date : Sep 20, 2021
Survey on Computer Software and Information Technology-Enabled Services Exports: 2020-21

Today, the Reserve Bank released the data related to the 2020-21 round of its annual survey on exports of computer software and information technology enabled services. The survey collects details on India’s exports of software services {computer services and information technology enabled services (ITES)/business process outsourcing (BPO) services} as per type of activity, on-site/off-site nature of services, country of destination and four modes of supply. The survey schedule is given in the Annex.

For 2020-21 round of the survey, 6115 software export companies were contacted, of which 1815 companies responded, which included most of the large companies. The responding companies accounted for 86.5 per cent of the total software services exports2 during the year (Table 1).

Highlights:

  • India’s exports of software services (excluding exports through commercial presence) are estimated at US$ 133.7 billion during 2020-21, registering 4.0 per cent growth over the previous year (Table 2).

  • Computer services and ITES contributed 65.3 per cent and 34.7 per cent, respectively, of the total software services exports (Table 2).

  • BPO services were the dominant component of exports of IT enabled services (Table 3).

  • Over half of the exports of software services were made by private limited companies (Table 4).

  • The United States was the major destination for software exports accounting for 54.8 per cent; Europe had 30.1 per cent share, nearly half of which was in the UK (Table 5).

  • The US dollar was the principal invoicing currency for software exports with 72.0 per cent share; Euro and Pound sterling together accounted for another 15.9 per cent (Table 6).

  • The share of off-site mode of exports of software services has increased gradually to 87.1 per cent in 2020-21 from 80.1 per cent five years ago (Table 7).

  • The share of mode-1 (cross-border supply) in India’s exports of software services increased further to 78.4 per cent in 2020-21: this share of mode-1 has been increasing over the years from 38.8 per cent in 2002-03 to 64.6 per cent in 2009-10 and further to 75.1 per cent in 2019-20, at the cost of the other three modes of delivery {viz., mode-2 (consumption abroad); mode-3 (commercial presence); and mode-4 (presence of natural persons)} (Table 8).

  • Software exports by foreign affiliates through commercial presence, where the USA is a major destination, stood at US$ 14.6 billion in 2020-21 (Tables 9 and 10).

  • Total exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth during 2020-21 and stood at US$ 148.3 billion (Table 8).

Ajit Prasad
Director  

Press Release: 2021-2022/893


Table 1: Survey Response and Final Estimates for 2020-21 – A Snapshot
(₹ crore)
Item Reported^ Final Estimates
(1) (2)
1. No. of companies 1,815 6,115
2. Total Exports of Software Services 858,608 992,141
    2.1 IT services 538,395 614,678
    2.2 Software Product Development 26,958 33,230
    2.3 BPO Services 236,039 278,507
    2.4 Engineering Services 57,216 65,726
3. Total Exports of Software Services (including commercial presence) 966,639 1,100,172
    3.1 Mode 1 (cross-border supply) 746,650 862,661
    3.2 Mode 2 (consumption abroad) 1,029 1,191
    3.3 Mode 3 (commercial presence) 108,031 108,031
    3.4 Mode 4 (presence of natural person) 110,929 128,289
^ Responses by the largest 20 companies ensured industry representation in the survey coverage.

Table 2: Software Services Exports from India
Activity 2019-20 2020-21
₹ crore US $ billion* Share (%) ₹ crore US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
A). Computer Services 607,203 85.7 66.6 647,908 87.3 65.3
Of which: i) IT services 571,712 80.7 62.7 614,678 82.8 62.0
               ii) Software Product Development 35,491 5.0 3.9 33,230 4.5 3.3
B). IT Enabled Services 304,499 42.9 33.4 344,233 46.4 34.7
Of which: i) BPO Services 236,172 33.3 25.9 278,507 37.5 28.1
               ii) Engineering Services 68,327 9.6 7.5 65,726 8.9 6.6
Total Export of Software Services (A+B) 911,702 128.6 100.0 992,141 133.7 100.0
Note: The sum of components may differ from total 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 2019-20 2020-21
₹ Crore US $ billion Share (%) ₹ crore US $ billion Share (%)
(1) (2) (3) (4) (5) (6)
BPO Services 236,172 33.3 77.6 278,507 37.5 81.0
     (i) Business consulting services including public relations services 30,646 4.3 10.1 34,510 4.6 10.0
     (ii) Finance and Accounting auditing book keeping and tax consulting services 41,867 5.9 13.7 43,223 5.8 12.6
     (iii) HR Administration 1,527 0.2 0.5 1,685 0.2 0.5
     (iv) Supply chain and other management services/ logistics 1,211 0.2 0.4 1,139 0.2 0.3
     (v) Medical transcription and document management 4,172 0.6 1.4 5,365 0.7 1.6
     (vi) Content development and management and publishing 2,179 0.3 0.7 1,949 0.3 0.6
     (v) Other BPO services 154,570 21.8 50.8 190,636 25.7 55.4
Engineering Services 68,327 9.6 22.4 65,726 8.9 19.0
     (i) Embedded Solutions 7,198 1.0 2.4 10,550 1.4 3.1
     (ii) Product Design Engineering (mechanical electronics excluding software) 25,350 3.6 8.3 29,996 4.0 8.7
     (iii) Industrial automation and enterprise asset management 1,811 0.3 0.6 1,702 0.2 0.5
     (iv) Other Engineering services 33,968 4.7 11.1 23,478 3.3 6.7
Total 304,499 42.9 100.0 344,233 46.4 100.0

Table 4: Organisation-wise Distribution of Software Services Exports
Types of Organisation 2019-20 2020-21
₹ crore US $ billion* Share (%) ₹ crore US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
Private Limited Company 477,264 67.3 52.3 525,194 70.8 52.9
Public Limited Company 425,027 60.0 46.6 444,682 59.9 44.8
Others# 9,411 1.3 1.1 22,265 3.0 2.3
Total 911,702 128.6 100.0 992,141 133.7 100.0
# Others includes mostly LLPs/proprietor firms.

Table 5: Software Services Exports – Major Destination
Region 2019-20 2020-21
₹ crore US $ billion* Share (%) ₹ crore US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
USA & Canada 529,334 74.7 58.1 557,187 75.1 56.2
Europe 251,812 35.5 27.6 298,932 40.3 30.1
    of which, UK 122,259 17.2 13.4 142,670 19.2 14.4
Asia 64,183 9.1 7.0 66,573 9.0 6.7
    of which, East Asia 54,246 7.7 5.9 59,429 8.0 6.0
                   West Asia 7,202 1.0 0.8 6,747 0.9 0.6
                   South Asia 2,735 0.4 0.3 397 0.1 0.1
Australia & New Zealand 27,625 3.9 3.0 31,054 4.2 3.1
Other countries 38,748 5.4 4.3 38,395 5.1 3.9
Total 911,702 128.6 100.0 992,141 133.7 100.0

Table 6: Software Services Exports - Currency Composition of Invoice
Currency 2019-20 2020-21
₹ crore US $ billion* Share (%) ₹ crore US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
United States Dollar (USD) 652,730 92.1 71.6 714,730 96.3 72.0
Euro (EUR) 85,543 12.1 9.4 92,230 12.4 9.3
British pound sterling (GBP) 66,253 9.3 7.3 65,547 8.8 6.6
Indian Rupee (INR) 44,037 6.2 4.8 54,131 7.3 5.5
Australian Dollar (AUD) 23,685 3.3 2.6 26,364 3.6 2.7
Other Currencies 39,454 5.6 4.3 39,139 5.3 3.9
Total 911,702 128.6 100.0 992,141 133.7 100.0

Table 7: Software Services Exports – Type of Services
Type of Services 2019-20 2020-21
₹ crore US $ billion* Share (%) ₹ crore US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
On-site services 138,120 19.5 15.1 128,289 17.3 12.9
Off-site services 773,582 109.1 84.9 863,852 116.4 87.1
Total 911,702 128.6 100.0 992,141 133.7 100.0

Table 8: Mode-wise Exports of Software Services
Type of Mode 2019-20 2020-21
₹ crore US $ billion* Share (%) ₹ crore US $ billion* Share (%)
(1) (2) (3) (4) (5) (6)
Mode 1 (cross-border supply) 772,967 109.0 75.1 862,661 116.2 78.4
Mode 2 (consumption abroad) 616 0.1 0.1 1,191 0.2 0.1
Mode 3 (commercial presence) 117,662 16.6 11.4 108,031 14.6 9.8
Mode 4 (presence of natural person) 138,120 19.5 13.4 128,289 17.3 11.7
Total 1,029,365 145.2 100.0 1,100,172 148.3 100.0

Table 9: Software Business by Foreign Affiliates of Indian Companies during 2020-21 ─ Activity Distribution
(Amount in ₹ crore)
Activity Locally To India Other Countries
(1) (2) (3)
IT services 12,641 548 3,104
Software product development 448 62 149
BPO services 14,756 515 1,533
Engineering services 2,534 19 186
Other services 77,652 31,342 13,927
Total (₹ crore) 108,031 32,486 18,899
Total (US $ billion*) 14.6 4.4 2.5

Table 10: Software Business by Foreign Affiliates of Indian Companies during 2020-21 ─ Country Distribution
(Amount in ₹ crore)
Country Share in Total Software business by foreign affiliates (%) Software business by foreign affiliates
Locally To India Other Countries
(1) (2) (3) (4)
United State of America 44.9 51,341 16,811 3,462
United Kingdom 15.2 9,039 14,208 999
Canada 4.9 7,070 11 808
Netherlands 4.3 5,530 22 1,329
Germany 4.2 5,981 139 507
Singapore 3.9 4,681 267 1,246
Other Countries 22.6 24,389 1,028 10,548
Total 100.0 108,031 32,486 18,899

1 The previous data release in the series, covering 2019-20 survey round, was published on March 16, 2021 on the RBI website.

2 Exports of relatively small non-responding companies were estimated as per the 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.


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