India well poised on the digitalization journey with consistent

growth across all industry segments

• The trio of New Age Digital, Domestic Technology Adoption and Technology Services - key
building blocks for the trillion dollar digital economy
• Software and Services revenue cross USD 150 billion in FY 2018

Positive outlook for the year ahead, based on global economic growth and
growth trends of digital spending

20th February, 2018, Hyderabad: On the sidelines of the special edition of the NASSCOM India
Leadership Forum, in conjunction with the World Congress on Information Technology, the National
Association of Software & Services Companies (NASSCOM) today announced the key trends of the
industry performance for the year 2017-18.

As digital technologies reshape businesses, government and consumers, NASSCOM reiterated the
need to capture the value and impact across all components of the digital economy in the country.
The stated vision to build a trillion dollar digital economy by 2022 would require growth across all
sectors, established and new age companies, technology service companies and product companies,
consumer internet as well as the increased adoption of digital across enterprise, government and
MSME in India.

The year 2017-18 began on a muted note, but driven by a better growth in the second half of the year
is expected to clock revenues of USD 167 billion, representing a growth of 7.8% for export revenues
and 10% in domestic revenues. E-commerce sector is expected to grow by 17 % in GMV terms.

NASSCOM stated that the industry continues to grow
steadily and establish itself as a “Digital Partner” for the
world. Key themes for the year included solutions across
AI, IoT, RPA, Blockchain and Digital transformation.
Indian SaaS companies were also a growth driver with
growth in vertical and horizontal SaaS. The year also saw
domestic technology services grow at 10%+ driven by
enterprise digital adoption and increased focus on
customer experience initiatives.
Key Highlights FY 2018:
• USD 167 billion revenues in FY 2018;
Largest export sector for the country;
24% of India’s exports
• Digital fastest growing at 30%
followed by ER&D at 13% and BPM at
8%+
• Accelerating influx of new GICs; 1140+
nos.

NASSCOM expects that the future of the industry will lie New Age Digital
in ‘Digital at Scale’ as global digital spending is growing at (Start-ups + eCommerce + Products +
20% annually. India’s digital revenues grew at 30% in FY Digital Payments)
2018, demonstrating the base for a solid foundation in • Start-ups: 700+ advanced tech start-
digital capabilities built by the sector. ups, growing at 25-30%
• Products: 50%+ firms implementing
Sharing his views, Mr. Raman Roy, Chairman, AI into their products; SaaS is
NASSCOM, said, “It’s a great milestone for the software preferred model for 50%+ product
companies
and services industry to cross USD 150 billion – tripling in
• eCommerce: 17% YoY growth, Focus
size in less than a decade. The growth of the B2B startup
across etail and etravel
sector also represents a unique opportunity for India to • Payments: Mobile wallet transactions
build innovative solutions for India and the world. grew from INR 532 Bn in 2017 to INR
However what lies ahead is even more exciting. From 793 Bn
small digital pilots, to POCs with product players, we are witnessing industrialization of digital as the
wave ahead”.

Mr. R Chandrashekhar, President, NASSCOM, said, “While 2017 started on the backdrop of
uncertainties across Protectionism, Brexit, slowdown in technology spend decision making, the current
outlook is one of cautious optimism. There is still some turbulence and it is not clear how some of the
known uncertainties will play out, however FY 2019 is likely to be a better year, based on our current
assessment”.

As per the outlook, the industry will further expand its digital footprint, with growth of 7-9% for
Technology Services, 10-12% for Domestic Technology and New age digital to grow 1.5-2X of industry
growth. Hiring is expected to be similar to FY 2018 with technology jobs in non-technology sectors
expected to grow faster. Growth of the Indian economy, rapid technology adoption and progressive
policies are key to accelerate job creation in the country.

About NASSCOM

NASSCOM® is the premier trade body and the chamber of commerce of the IT-BPM industry in India.
NASSCOM is a global trade body with more than 2400 members, which include both Indian and
multinational companies that have a presence in India. NASSCOM's member and associate member
companies are broadly in the business of IT Services, BPM, Products, ER&D. NASSCOM’s membership
base constitutes over 95% of the industry revenues in India and employs over 3.96 million
professionals.