Share of digital services in IT export to double to 30% by FY20: Crisil Ratings

30 Jan 2018 Evaluate

With the digital services segment growing at a healthy 30-35% annually, credit ratings agency, Crisil Ratings in its latest report has expected that the share of digital services in the export revenue of Indian information technology (IT) service companies to double to around 30% by fiscal year 2020. It added that this will be supported by initiatives like large-scale re-skilling of the tech workforce and more of mergers and acquisitions (M&A) in the digital space. On the other hand, the share of traditional IT services, which account for the bulk of the $140 billion-a-year Indian IT industry, will decline given the flaccid 2-4% annual growth currently. It also said that the overall IT revenue is expected to grow at 8% per annum until FY20, mainly due to digital services.

According to the report, with the late entry of domestic firms into digital services segment, the share of digital services revenue in India's IT export is currently around 15%. However, the segment also grew a little more than 25% in FY17 as Indian IT firms won digital deals, on the back of re-skilling of employees and this trend is set to accelerate. Besides, revenue growth slowed to below 10% between fiscals 2015 and 2017, from a very strong 27% compounded annual growth rate seen in the two decades through FY14. It also elaborated that with bulk of the revenue coming from exports of services, lower IT spend by major global clients and a shift in demand towards digital services have led to the decline.

Crisil Ratings also noted that the share of digital services in new global outsourcing contracts is estimated to have doubled to about 40% in FY17 from three years back, and will drive revenue growth going forward. It added that for major global IT players, more than a third of revenue already comes from digital services. It also foresees an increase in moderate-sized acquisitions in the digital space by both large and small firms to expand digital offerings and build scale. For smaller firms, acquisition activity will also be driven by the need to diversify existing offerings, an area of strength for larger firms already.

Create stable, long-term investment portfolio with strong, consistent stocks.

Start Research-backed Investing ...Now. Subscribe to Sapphire

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.