Analysing the external and domestic determinants of Indian IT services’ exports and prediction of its future export potential

Abstract

In recent times, IT industry which comprises of IT services, IT enabled services (ITes) and Business process outsourcing services (BPO) has emerged as one of the most dynamic and vibrant sectors in India’s economy. IT industry with its inception in 80s has now grown into a sizeable industry. In general, IT industry caters services for domestic market and foreign markets (exports). IT exports account for around 75% of total IT services. Indian IT exports showed a significant contribution to the GDP of India and growing considerably year-on-year. The factors that determine its growth can be easily stated qualitatively as seen in many existing literatures. But, still there is no detailed study conducted on the quantitative explanation of the factors that determines the IT exports.