The leading software service exporters of India are gradually expanding their activities in areas other than North America and Europe. This new development is occasioned by the fact that business entities have to constantly adapt for their growth in an ever dynamic global environment in Technology. Organizations like Tata Consultancy Services (TCS), Infosys, Wipro and others are now targeting the markets like Japan, Middle East, Australia, and the APAC region apart from the Indian market. This change has been brought about by the fact that many firms want to manage risks and seize value creation opportunities in dynamically evolving geographies.
Moving from US and Europe Markets
Over the years, the major growth driver of information technology exports from India has been North America and Europe, especially the US, which currently absorbs over 50% of the $254 billion software service export market in India. But over the last few years, business originating from North American clients has reduced and some firms have reported a drop of up to 2 percent in their business from this continent. They have blamed this decline on a slowing down in technology spending and macroeconomic conditions especially during the post COVID era.
However, there has been consistent export of IT to other regions of the world through exports. For instance, in the fiscal quarter of July-September 2025, TCS witnessed a stupendous 95.2% rise in revenue from India primarily because of the deal signed with BSNL. India’s revenue share of TCS increased to 8.9 % which was the maximum in the last three years while Middle East & Africa rose by 7.9% and APAC by 7.5%. Meanwhile, its North America business fell by 2.1% and Europe rose only by 1.8%.
Similarly, Infosys has posted a higher growth in India at 16% while there has been a mere 4% in the “Rest of the World” while it has also experienced a decline of 2.7% in North America. These figures support the argument that globalization is making the balance of India’s information technology exports more diverse with other regions assuming a greater proportion of the business.
Long term growth and the concept of diversification
The industry’s leaders agree that diversification of information technology exports is crucial to its sustainable development. “The US and Europe markets are now fully grown for IT services and the future growth will come from other geographies,” said Pareekh Jain, CEO of IT research firm EIIR Trend. Many countries in APAC, Middle East and Latin America are now going for digital transformation and this is opening up new IT possibilities for Indian companies.
Specifically, the CEO of TCS, K. Krithivasan, discussed the company’s plan to turn to the emerging markets as one of the main directions of its future development. “We are putting a lot of capital into developing a big market in places such as India, APAC, Latin America, and the Middle East.” These regions are likely to become significant sources of growth in the future decades, he said. TCS believes that these emerging markets are less profitable in the short run than other more mature markets, but if volumes of business increase and operating costs come down, these markets will prove to be more profitable.
Growing Demand in New Regions
Indian IT exports have already had some impact in several areas, particularly in the Middle East, APAC and Africa. For instance, Infosys has recently secured 21 large bids with three in India and one in the Rest of the World segment. At the same time, Wipro’s business in the APMEA has also stabilised, with a robust deal pipeline across these regions besides a good business momentum in the Americas.
Some players such as HCLTech have not been much affected by the slow market in the US and Europe. But regional changes are likely to be more significant in contributing to the overall increase in the value of information technology exports since firms seek greater regional diversification.
A Look Ahead
As Indian information technology exports expand beyond their traditional markets, companies are also focusing on the growing opportunities created by disruptive technologies like generative artificial intelligence (GenAI). The shift in focus is not only a response to short-term economic pressures but a strategic move to capture future growth. With digital transformation underway in several regions, India’s IT service giants are positioning themselves to thrive in these emerging markets.
In conclusion, while the US and Europe will continue to drive growth for Indian information technology exports in the near term, long-term success will depend on diversifying into other regions like India, APAC, the Middle East, and Latin America. By tapping into these rapidly transforming markets, Indian IT companies can ensure continued growth and competitiveness in a dynamic global marketplace.
source:: business-standard.com
