During the first four months (July-October) of fiscal year 2023-24, the export remittances from the Information Technology (IT) and IT-enabled Services (ITeS) sector, including computer services and call center services, saw a notable increase of approximately 4.4%.
The total reached $893 million, compared to the $855 million recorded in the same period of the previous fiscal year.
Official data further revealed that in October 2023, ITeS export remittances experienced a significant month-on-month (MoM) surge of around 15%, totaling $238 million in contrast to the $206 million recorded in September 2023. On a year-on-year (YoY) basis, the sector’s export remittances demonstrated a growth of about 7.6% compared to October 2022, reaching $238 million.
It’s noteworthy that the Ministry of Information Technology and Telecommunication has identified various constraints hindering the export potential of the country’s information technology sector, aiming for a target of $15 billion. These constraints include policy inconsistencies, taxation issues, and banking hurdles.
Official documents disclosed that over the past five years, the IT and ITeS exports have witnessed an impressive growth of 178%, with a compound annual growth rate (CAGR) of 30%. This growth rate surpasses that of all other local service industries, even outpacing the textile sector, which stands at 148%.
Despite this growth, the sector faces challenges such as policy inconsistency, causing concerns among local and international investors, customers, partners, trade bodies, and government entities. The frequent changes in taxation policies on IT and ITeS export proceeds are cited as an example of these challenges.
