ITeS MSMEs To Grow 7-9 Per Cent In FY2024-25

ENA MSME 2024-10-01 15:55:21 New Delhi, Oct 1 (KNN) The micro, small and medium enterprises (MSMEs) in India's information technology-enabled services (ITeS) sector are forecasted to experience robust growth in the current financial year, according to industry analysts. The sector is expected to expand by 7-9 per cent in rupee terms, reaching an estimated value of Rs 4.2 trillion. This growth projection comes despite the global economic slowdown that affected the industry in the previous fiscal year. Experts attribute this positive outlook to a strong order pipeline, the resumption of previously deferred projects, and new contracts from key sectors such as banking, financial services, insurance, and manufacturing. MSMEs, which constitute approximately 30-40 per cent of the ITeS industry, are predominantly engaged in customer relationship management (CRM) services. These services account for roughly three-quarters of the sector's revenue. Industry observers note that these enterprises are well-positioned to benefit from an ongoing shift towards non-voice revenue streams. Beyond CRM, other ITeS segments are also showing promise. Transaction services are expected to grow, propelled by the increasing adoption of digital payment solutions. Knowledge services are evolving as well, with a greater emphasis on analytics-driven offerings. However, employment growth in the sector is anticipated to remain modest, with projections ranging from 0-1 per cent for the current financial year. This conservative approach to hiring reflects companies' focus on improving cost efficiency and developing existing talent rather than large-scale recruitment. Looking ahead to the next financial year, the ITeS MSME sector is projected to grow by 8-10 per cent. This optimistic forecast is based on an expected increase in global outsourcing and offshoring activities as international companies seek cost-saving measures. Additionally, the healthcare and travel segments within the ITeS sector are predicted to experience double-digit revenue growth, further bolstering the industry's prospects. As the ITeS MSME sector navigates these evolving market dynamics, its ability to adapt to changing client needs and technological advancements will be crucial in realising these growth projections. (KNN Bureau) 39463 https://knnindia.co.in/news/newsdetails/msme/ites-msmes-to-grow-7-9-per-cent-in-fy2024-25 2024-10-01 15:55:21 knnindia.co.in ITeS MSMEs To Grow 7-9 Per Cent In FY2024-25