Editor-DN
Micro, small and medium enterprises (MSMEs) in the information technology-enabled services (ITeS) industry are estimated to grow by 7-9% in rupee terms to Rs 4.2 trillion this fiscal, which is Driven by a robust order pipeline and minimal impact. The global economic slowdown that affected the last financial year.
Growth will be supported by revival of deferred projects and new orders from key segments such as banking, financial services and insurance and manufacturing.
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MSMEs, which comprise 30-40 percent of the industry, are mostly involved in customer relationship management (CRM) services, which account for three-quarters of revenue and are poised to benefit from the shift towards non-voice revenue.
Elsewhere in ITES, transaction services will expand on the back of growing digital payments. Knowledge services, too, are evolving with a greater focus on analytics-based offerings.
Employment growth in the industry is expected to remain modest at 0-1 percent this fiscal as companies adopt a cautious approach, delaying discretionary projects and focusing on internal programs aimed at improving cost efficiency.
and skill development rather than mass hiring.
Next fiscal year, the industry is expected to grow by 8-10% due to increased global outsourcing and offshoring for cost savings. Additionally, the healthcare and travel segments are expected to witness double-digit revenue growth, further boosting the industry.
First Publication: 30 September 2024 | 11:08 PM I.S
