IT Enabled Service Providers (ITES)
Index : 1,446 | 1Yr : +3.94% | 1Mo : +2.66%
Category : Sectoral Trackers
Min Investment : 5,662
The large IT & IT services companies in India have been largely responsible for the rapid economic growth of India and especially in certain pockets like Bangalore, Hyderabad and Chennai. It contributes more than 9% of India's GDP.
In this industry there are various revenue sources like setup fees, subscriptions, white label licensing, upgradations, APIs and customer service. Exports constitute more than 75% of the total revenue and it employs more than 10 million people both directly and indirectly.
As the IT industry is evolving fast to digital technologies, there is expected to be a structural change going forward. The consolidation via acquisitions & startup funding show that the large players are looking address niche needs and offer end-to-end solutions. Since these companies are mostly debt-free / less debt and have large cash reserves, it gives them the ability to evolve fast and re-invest their surplus funds in the most profitable opportunities. Invest in the most promising companies with relatively good valuation and sound financial position.