The micro, small, and medium enterprises (MSMEs) in the information technology-enabled services (ITeS) sector are projected to grow by 7-9% in rupee terms to reach Rs 4.2 trillion this fiscal year. This growth is driven by a strong order pipeline and minimal impact from the global economic slowdown that affected the sector last year.
Key drivers of this growth include the revival of deferred projects and new orders from crucial sectors such as banking, financial services, insurance, and manufacturing. MSMEs, which make up 30-40% of the industry and primarily focus on customer relationship management (CRM) services—accounting for 75% of revenue—are set to benefit from the shift toward non-voice revenue streams.
In other ITeS areas, transaction services are expected to grow due to the rise in digital payments, while knowledge services are evolving with a greater emphasis on analytics-based offerings.
Employee growth in the sector is forecasted to remain modest at 0-1% this fiscal year, as companies adopt a cautious stance, delaying discretionary projects and prioritizing cost efficiency and skill development over large-scale hiring.
Looking ahead, the sector is expected to grow by 8-10% next year, driven by increased global outsourcing and offshoring for cost savings. The healthcare and travel sectors are also anticipated to experience double-digit revenue growth, further boosting the industry.