Dun and Bradstreet India is pleased to release its inaugural edition of ‘Emerging IT SMEs of India 2007’. The publication is an endeavor to provide a platform for the IT SMEs in the country and underscore some of their key achievements, thus highlighting their role in the economy. The publication aims to bring into focus the IT SME segment, which has played a vital role in the growth of the industry, but may have not received the requisite acknowledgment.

India has emerged as one of the fastest growing economies in the world, having clocked an average GDP growth rate of over 9% over the past two years. The Government of India has continuously emphasized the role of SMEs in order to sustain the current high economic growth rate. SMEs contributed more than 15% to India’s GDP in FY06 and employed more than 29 million people. Moreover, SMEs account for around 95% of industrial units and contribute around 40% of the country’s industrial output. In addition, the SME segment also contributes around 35% of India’s total exports. It has been universally accepted that SMEs are the stepping stones for entrepreneurship development, innovation and risk taking behaviour and provide the foundation for long term growth.

The Indian IT industry is one of the most prominent driving factors towards achieving high rates of economic growth. The sector’s contribution to India’s GDP has gone up from 2.01% in FY01 to 5.41% in FY07. The Indian IT industry, which today employs 1.6 million people, is likely to see its revenues to cross US$ 100 billion by 2011, with increasing focus on the export market. The Indian IT industry is fragmented and SMEs play a vital role to gain from the global offshore momentum. Although, the top four players account for more than 25% of the revenue, several SMEs have also witnessed rapid growth. The Government has taken several policy initiatives for small players to enhance their visibility and revenue earnings. Of late, it has been observed that small sized IT companies have been intensely following the route of inorganic growth, as several companies have started acquiring similar sized companies. Booming domestic and export markets are providing increasing opportunities for SMEs in the IT sector. In FY07, the IT-ITeS industry witnessed a strong growth in export revenue to reach US$ 31.3 billion, out of the total industry revenue of US$ 47.8 billion.

The publication would facilitate opportunities for the IT SMEs by helping them reach out to their current and prospective clients globally. D&B has drawn on its time-tested expertise in business information to the benefit of the small and medium companies, as this publication adequately reflects.

I hope you will enjoy reading ‘Emerging IT SMEs of India 2007’ and look forward to receiving your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet