Snap-shot Pack

IT Services

1
 Though global IT industry has been growing at 5.9% CAGR,
IT services segment growth has been muted.

GLOBAL SIZE AND SEGMENTATION

Source: Nasscom
2
 US and EMEA account for 80% of the global IT spending.

IT/ITES REGION-WISE SPENDING

Source: Crisil Research

3
 Size of Indian IT industry is $166 bn and exports constitute
76%.

Indian IT industry Overview

Source: Nasscom, Crisil Research

4
 Though the proportion of onsite billing is maintained, several
factors have made Indian IT companies to hire locals for their
onsite roles.
• Players face several issues in
SHARE OF ONSITE IN THE OVERALL MIX onsite front:
 'Protect And Grow
American Jobs Act‘ to
increase jobs for locals.
 Proposal to increase
minimum wage for H-1B
workers from $60,000 to
$100,000.
 Barring the spouse of H1B
visa workers from seeking
employment.
• Indian IT players are expected
to increase local hiring as short-
term solution.
• Thus, Infosys has already
announced plans to hire around
Source: Company reports, CRISIL Research 10,000 local employees in the
5 United States.
 Employee costs of Tier-1 companies are lower than that of the
mid-tier companies due to economies of scale.

Employee Costs as % of Revenues

Source: Crisil Research

6
 Exports growth are expected to be in the range of 7-8% CAGR
between 2018 to 2022.

EXPECTED EXPORTS GROWTH

Source: Crisil Research

7
 About 70% of all incremental growth in IT exports is expected to
be in digital services.

IMPORTANCE OF DIGITAL SERVICES

Source: Nasscom, Crisil Research

8