Software Exports = $180.6B, Listed IT Firms = $69.6B, Why? 6 Points

India’s Software Exports Hit $180.6 Bn, But Listed IT Firms Lag at $69.6 Bn — GCCs Take the Lead

1. Export Boom vs Listed IT Slowdown

• Total Software Exports (FY25): $180.6 billion

  • Growth: 12.7% YoY (RBI data)

• Revenues of 64 Listed IT Firms: $69.6 billion

  • Growth: Only 3.8% YoY

• Gap Driver: Rise of unlisted IT firms + GCCs + BoP vs company reporting differences

📊 Table: Export Growth vs Listed IT Firms

2. GCCs Grabbing Market & Talent Share

• Global Capability Centres (GCCs) in India: ~1,700

  • Share of Global GCCs: ~50%

  • Nature: Mostly cost centres (not revenue/profit focused)

• Tech Roles FY25: 200,000 total

  • GCC Share: ~120,000 roles

  • Growth: 10–15% YoY

Key Financial Impact

• GCCs are cannibalising IT services market share

• Businesses and engineering talent shifting directly to MNCs’ in-house units

3. Why GCCs Are Winning

a) Cost + Talent Advantage

• India still preferred for low-cost, high-volume tech talent

• Same benefit that fuelled IT services boom is now empowering GCCs

b) Salary Stagnation at IT Firms

• Broader and specialised skill demands

• Compensation not keeping pace, pushing talent to GCCs

c) Industry Diversification

• Started with tech firms, now attracting:

  • Retail: JCPenney, Saks Fifth Avenue, Victoria’s Secret

  • Travel: Airlines, hotels, car rentals

  • BFSI: Lloyds, Barclays, RBL Bank

4. GCCs Move From Support to Strategy

• GCCs now drive:

  • Innovation

  • Product development

  • Core banking and financial tech

• Engineers increasingly pivoting to finance and banking GCCs

⚙ Hiring Trends

• Lloyds: 2,500+ engineers (14 months), 95% tech-focused

• Barclays India: In-house tech share ↑ from 33% to 66% in 10 years

• RBL Bank: Shift from 35:65 (in-house:outsourced) → 60:40 in 6 months

5. IT Majors Under Pressure

• As per ICICI Securities, top challenges include:

  • GCCs eroding traditional outsourcing demand

  • Talent drain from IT services to in-house units

• Raises zero-sum concern:

  • GCC gains = IT services slowdown?

6. City-Level Competition Heating Up

• Indian metros now competing to attract GCCs

• Business incentives, talent pools, and infrastructure are differentiators

✅ Summary Snapshot