RSM India

Information technology (IT) and IT enabled services (ITeS)

Information technology (IT) and IT enabled services (ITeS)

Our service offerings for the IT and ITES industry

India is regarded as the back office of the world owing mainly to its IT and ITES industry. The sector in India grew at a Compound Annual Growth rate (CAGR) of 15 per cent over 2010-15, which is 3-4 times higher than the global IT-ITES spend, and is estimated to expand at a CAGR of 9.5 per cent to US$ 300 bn by 2020.  India is also the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 bn market.

Opportunities and Challenges:

The changing economic and business conditions, rapid technological innovation, proliferation of the internet and globalization are creating an increasingly competitive environment. The role of technology has evolved from supporting corporations to transforming them. Global companies are increasingly turning to offshore technology service providers in order to meet their need for high quality and cost competitive technology solutions.

We understand that being in the IT and ITES industry, your company can encounter a wide variety of risks and challenges in their endeavor to create and maintain a seamless, successful, sustainable and scalable business. Some of the challenges faced include:

  • Ability to create and maintain a truly world class proven global delivery model which would allow your organization to provide services to customers on a best shore basis. This would require round the clock execution capabilities across multiple time zones, access to a large pool of highly skilled technology professionals and a knowledge management system to reuse solutions where appropriate
  • Develop and expand a strong, comprehensive, best in class end to end solutions and service offerings in order help your clients gain market differentiation or competitive advantage and thus capture a greater share of your client’s technology budgets
  • Ability to scale when the opportunity arises. This would require constant investment in infrastructure and rapidly recruit, train and deploy new professionals
  • Manage revenue and expenses during economic downturn, enhance your organization’s capacity to withstand pricing pressures, commoditization of services and decreased utilization rates
  • Manage exchange rate volatility and counter party risk in treasury operations
  • Expand your client list across business verticals to reduce over dependency and risk of losing substantial market share
  • Maintain superior and sophisticated project management methodology in line with global quality standards and ensure timely, consistent and accurate execution to achieve highest client satisfaction
  • Ensuring successful integration of inorganic growth opportunities that your organization may undertake from time to time across geographies

How we can help

Some of the key services being offered to this industry include:

  • Internal and management audits
  • Enterprise risk management (ERM)
  • Information system audits
  • Corporate advisory
  • Financial due diligence and structuring services
  • Tax and regulatory services

Advantage RSM:

  • RSM in India is consistently ranked amongst India’s top six accounting and consulting groups and globally RSM is the seventh largest audit, tax and consulting network
  • To meet our clients’ challenges, our IT and ITES practice teams have honed the means and resources to assist both established and emerging enterprises alike to succeed in dynamic markets
  • RSM in India caters to some of the leading IT and ITES companies having global presence across the US, UK and South East Asia
  • Our professionals have the necessary vision, experience, industry insights and innovative approaches to provide clear and practical advice to companies in this sector to help them navigate in markets that are rapidly consolidating
  • Extensive experience in advisory, taxation and accounting matters across various functions, sectors and geographies
  • Multi-disciplinary team of professionals comprising of Chartered Accountants, MBAs, Engineers, Company Secretaries, CISA / DISA, Cost Accountants and Law graduates

IND AS NOTES: Revenue / Income Recognition in the Software Sector - Key Changes in IND AS

6 January 2016
This article deals with changes under Ind AS that significantly affect the accounting of revenue by Indian software/technology (IT/ITeS) companies. In addition to revenue recognition, it also deals with recognition of investment income.

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