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IT and BPM

IT and BPM

IT and BPM


  • IT-BPM sector accounts for the largest share in total Indian services export (45%).
  • IT-BPM sector accounts for 56% of the total global outsourcing market.
  • 640 offshore development centres in more than 80 countries.
  • Indian IT & BPM industry is expected to grow to USD 300 billion by 2020.
  • IT-BPM sector constitutes ~ 9.3% of India's GDP.
  • IT-BPM is the largest private-sector employer - delivering 3.7 million jobs.



  • The tax rate on royalty and fee for technical service payable to non-residents has been reduced from 25% to 10%.
  • The National Optical Fibre Network Programme (NOFNP) to be further speeded up by allowing willing states to execute on reimbursement of cost basis as determined by the Department of Telecom.
  • Supporting technology-driven start-ups - Creating of innovation Promotion Platform and Techno-financial and facilitation support scheme
  • Self-Employment and Talent Utilization (SETU) to establish as techno-financial, incubation and facilitation programme to support all aspects of a start-up business.
  • Transfer Pricing - Increase in Domestic Transfer pricing threshold from USD 769,230 to USD 3.07 million.
  • Reduction in the tax rate on Royalty and Fees from Technical services from 25% to 10%
  • CENVAT credit time limit for availing increased from 6 months to 1 year.
  • General Anti-Avoidance Rule (GAAR) deferred by another two years and will be implied prospectively.
  • 2 days’ time for service tax/ excise duty registration; electronic filing including a digital signature.
  • Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of USD 3.07 billion, and credit guarantee corpus of USD 461.53 million aiming to infuse funding among the new generation entrepreneurs.


  • The setting up of IT services, BPM, software product companies, shared service centres.
  • Fast-growing sectors within the BPM domain – knowledge services, data analytics, legal services, Business Process as a Service (BPaaS), cloud-based services.
  • IT Services and fast-growing sectors within it such as solutions and services around SMAC, IS outsourcing, IT consulting, software testing.
  • Engineering and R&D within which the fastest growing sectors are – telecom & semiconductors.