India Now - page 21

S E R V I C E S E X P O R T S
COVE R S TORY
tion of delivering state-of-the-art work
at low cost, especially in the area of
international television programming.
The cost of animation production
in India is one-fourth to that of
North America. Further, the
competitive position in terms
of labour cost has made India a
preferred outsourcing destina-
tion hub.” According to a NASS-
COM study
Strategic Review 2014
,
entry level salaries in India are 8
to 10 times lower than the source
countries. North America, Aus-
tralia and Western Europe are some
of the prominent regions outsourcing
animation and VFX work to India.
The small and medium enterprises
(SME) services sector is playing an
important role in the overall industry.
SMEs account for a substantial contri-
bution to the services sector. According
to CII, the SME segment contributes
7 per cent towards manufacturing, but
nearly 31 per cent to the services sector.
Among the services sectors, SMEs have
the highest concentration of manpower-
intensive services like security agencies,
housekeeping, and facility manage-
ment, in addition they are also present
in education services, logistics services,
media-advertising and IT services. These
industries provide job opportunities to
skilled as well as semi-skilled manpower.
SMEs play a significant role in exports
in primarily two services sectors—IT-
BPM and professional services. The
sector contributes almost US$ 18 billion
to the IT-BPM sector and is estimated to
contribute to close to 30 per cent of IT
exports from India. With the demand
for new and niche services, especially
in the data analytics domain, SMEs are
under traditional Ayurveda, Yoga, Unani
and Siddhi (AYUSH) medicinal systems,
also known as holistic or naturopathy
treatments. The Indian healthcare sec-
tor is also evolving at a rapid pace and
is expected to fuel the demand for spe-
cialised diagnosticians and healthcare
services administrators.
The media and entertainment pavil-
ion at GES 2015 was one of the most
exciting showpieces on display, render-
ing India as a talent house in showbiz.
Being hailed as the sunrise sector of the
Indian economy, the media & entertain-
ment industry is expected to double its
size to around US$ 30 billion by 2020
driven by a host of factors, including
demand for local content by an increas-
ing overseas diaspora, a maturing televi-
sion and movie industry, and the growth
of digital media, as per a KPMG analysis.
However, a CII-PwC report titled
India
Entertainment &Media Outlook 2014
, fore-
casts that the sector will grow in excess of
US$ 36.49 billion by 2018, growing at a
compound annual growth rate (CAGR)
of 15 per cent between 2013 and 2018. The
overall entertainment and media indus-
try was estimated at US$ 18.01 billion in
2013 and grew by 19 per cent over 2012.
Mr Wahi, talking from an export per-
spective, says, “India holds the reputa-
Insurance
Software
Services
Business
Services
Financial
Services
Communication
Services
“Ample supply of
skilled labour at
relatively lower
prices enables
companies to
cater offshore
clients with
relative ease.”
Dripto Mukhopadhyay
Chief Economist & Head-
Microeconomics, Indicus
Analytics (A Nielsen
Company)
0.50
16.48
65.86
62.21
55.46
49.70
46.30
7.26
28.44
25.91
24.05
11.32
18.60
1.72
4.94
5.96
6.50
3.69
4.42
0.63
1.68
1.60
1.56
1.22
2.29
2.22
2.63
1.94
1.59
1.42
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