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9.25 Over the last six years, IT services has constituted the majority share (over 50 per cent)
of the IT-BPM sector (Figure 3), with about US$ 97 billion in revenues in 2019-20. Software
& Engineering Services has witnessed a consistent growth each year, constituting a share of 21
per cent in the sector and US$ 40.2 billion in revenue in 2019-20. BPM Services has maintained
its share at 19.8 per cent, while the Hardware services has been declining in share each year but
maintaining growth in revenues.

Figure 3: Sub-Sector Breakdown of IT-BPM Sector in 2014-15 to 2019-20

Source: NASSCOM. Note: E: Estimate.
9.26 A significant part (about 84 per cent) of the IT-BPM industry (excluding hardware and
e-commerce) continues to be export driven, with export revenues in excess of US$ 146 billion in
2019-20 (Table 8). During 2019-20, the revenue growth for IT-BPM sector (excluding hardware
and e-commerce) made a recovery to reach 7.9 per cent up from 6.8 per cent in 2018-19. This
was driven primarily by a significant boost in domestic revenue growth (6.6 per cent in 2019-20
from -0.3 per cent in 2018-19).

Table 8: Exports and Domestic Market Size of Indian IT-BPM Industry
(Excluding Hardware & E-Commerce)

USD billion Per cent (YoY)
Year Domestic Exports Total Domestic Exports Total

2015-16 21.58 107.83 129.41 3.2 10.3 9.1
2016-17 23.84 116.06 139.90 10.4 7.6 8.1

2017-18 26.33 125.08 151.40 10.4 7.8 8.2
2018-19 26.25 135.51 161.76 -0.3 8.3 6.8

2019-20E 27.99 146.55 174.53 6.6 8.1 7.9
Source: NASSCOM. Note: E: Estimate.

9.27 Out of the total US$ 146.55 billion in exports of the IT-BPM sector in 2019-20, IT
services contributed US$ 79.1 billion, accounting for 54 per cent of the exports. BPM and
Software Products & Engineering services accounted for the remaining 46 per cent with