ITeS, MSMEs set for stable growth amid global slowdown, shows report

The information technology enabled services (ITeS) industry, which is estimated to have grown 10 per cent in dollar terms to $46 billion in FY23, is expected to maintain its trajectory with 7-9 per cent growth this financial year.
 

The growth will ride on healthy order book despite the global slowdown as spending in this industry is mostly non-discretionary. 

That augurs well for micro, small and medium enterprises (MSMEs), which account for 30-40 per cent of the industry and play a pivotal role in segments such as customer relationship management (CRM), transaction services and knowledge process outsourcing (KPO). 

The industry’s growth is likely to be led by accelerated adoption of premium services, including a shift to non-voice services in the CRM segment, a surge in digital payments in the transaction services segment and evolution of analytics-based offerings in the KPO segment. 

More tailwind is expected from the travel segment, which is poised for double-digit revenue growth, further augmenting ITeS growth. The ITeS employee base, though, is expected to grow 0-1 per cent as companies adopt a cautious approach due to deferred discretionary projects, with firms prioritising internal programmes for cost optimisation and efficiency improvement, emphasising skill-based additions over scale.