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

Newsflash – Karnataka State Budget 2016-17

29 March 2016
Karnataka Value Added Tax  KVAT, 18 March 2016  Entertainment Tax Click here to download  

Newsflash – Central Excise Duty on Articles of Jewellery - Certain key aspects of the Finance Bill, 2016

28 March 2016
Through its Finance Budget, 2016, the Government of India has re-introduced Excise Duty on articles of jewellery with effect from 1 March 2016. This newsflash attempts to summarise some of the significant implications, on account of the said levy on the manufacture and sale of Jewellery.

Newsflash-Maharashtra State Budget 2016-17 - Key Highlights

23 March 2016
On 18 March 2016 Maharashtra Finance Minister has presented the State budget for the year 2016-17. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified . This newsflash brings to you certain key aspects of the Maharashtra State Budget 2016-17.

White Paper - Base Erosion and Profit Shifting

23 March 2016
The integration of national economies and market has increased substantially in recent years putting a strain on the international taxes, which were devised many years ago.

Newsflash – State VAT Updates

10 March 2016
Various States have issued VAT notifications and during the period February and March 2016.  This newsflash summarises certain relevant circulars / notifications issued by various States in respect of their VAT laws, for the period 1 February 2016 till 8 March 2016.

Budget buzz on Dalal Street: Investors fear changes in STT, DDT, capital gains tax

17 February 2016
Views of Dr. Suresh Surana (Founder, RSM Astute Consulting) Government is committed to reducing litigation and has recently taken certain measures, such as setting up of tax simplification committee and acceptance of the judicial rulings in the case of Vodafone/Shell, etc. 

Budget Expectations 2016 – Corporate Taxes

17 February 2016
Article by Dr. Suresh Surana (Founder, RSM Astute Consulting)  

Non-filing of income tax return invites penalty

17 February 2016
In today’s busy life, many people may fail to file income tax returns. However, it is imperative that every person who has taxable income above the basic exemption files tax return in time.

This is how you can save tax this year

17 February 2016
With the end of financial year just around the corner, it is time to save certain amount of taxes by investing in prescribed instruments which are eligible for deductions. Chapter VI-A of the Income-tax Act primarily provides for deduction on certain payments and deduction on certain incomes.

Companies Act 2013 – Summary Note on Borrowings by Private Companies

9 February 2016
The objective of this summary note is to give an indicative list of persons / entities whom a private limited company generally approaches to raise funds by way of borrowings and the terms and restrictions on making such borrowings as prescribed under the Companies Act, 2013.

Newsflash – Section 135 of the Companies Act, 2013 - FAQs on Corporate Social Responsibility

1 February 2016
Section 135 of the Companies Act, 2013, Schedule VII of the Act and Companies CSR Policy Rules, 2014 read with General Circular dated 18 June 2014    issued by the Ministry of Corporate Affairs (MCA), provide the broad contour within which eligible Companies are required to formulate their CSR policies  including activities to be undertaken and implement the same i

Newsflash – Significant Highlights of Draft Recommendations of Income Tax Simplification Committee

28 January 2016
On 27 October, 2015, the Government of India had constituted a 10-member Committee under the Chairmanship of Justice R.V Easwar, former Judge of the Delhi High Court with a view to simplify the provisions of the Income Tax Act, 1961.

Newsflash – Startup Revolution in India

28 January 2016
Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design.

Taxpayers should not worry about the tighter PAN norms

20 January 2016
The income-tax department, recently, changed the regulations that require individuals to quote their permanent account number (PAN) for certain high value transactions. The rules, applicable from 1 January 2016, rationalises the earlier law and benefits taxpayers in many ways.   This write-up includes Dr. Suresh Surana’s views on the same.

Why this POEM spooks corporate India

20 January 2016
The Finance Act, 2015, amended the provisions of the provisions of income tax act relating to determination of residence of a company. According to the amended provisions, a company would be said to be resident in India in any previous year, if it is an Indian company, or its Place of Effective Management (POEM) in that year is in India.

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