The Indian Information Technology (IT) and Information Technology enabled Services (ITeS) sectors go hand-in-hand in every aspect. The industry has not only transformed India's image on the global platform, but also fuelled economic growth by energising higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and hence, has contributed a lot to social transformation in the country.
Furthermore, Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes most efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries.
With global BFSI (banking, financial services, insurance) clients accounting for over 40 per cent of Indian IT vendors' revenues, the industry is poised to go beyond US$ 100 billion mark in 2012. Moreover, industry body Nasscom predicts that the ITeS industry will bring in around US$ 225 billion by 2020, wherein 80 per cent of the growth would come from the presently untapped sectors and regions.
Between April 2000 and May 2012, the computer software and hardware sector attracted cumulative foreign direct investment (FDI) of US$ 11,262 million, according to the Department of Industrial Policy and Promotion (DIPP).
Certain other developments pertaining to the sector are discussed below-
Cloud computing is the most contemporary technology developed on the IT & ITeS landscape. A public cloud is a proposition that allows service providers to make their offerings (like applications, software solutions, data storage packages, etc.) accessible to the general public over the internet. Most of such services entail pay-as-you-use model. The total Indian market for cloud computing (both public and private) has been pegged at US$ 860 million - US$ 912 million in 2011, according to an independent research firm Zinnov Management Consulting.
Zinnov's study, focussed on 'Public Cloud Opportunity in India', states that Indian public cloud computing market is projected to grow to US$ 685 million by 2014. The report further states that the public cloud, which is anticipated to expand by 55 per cent compounded annual growth rate (CAGR), would become an obvious choice for new IT investments, especially in the small and medium business (SMB) segment.
Cloud computing, as a concept, is at a very nascent stage in India and hence, provides a great potential for future growth. Global and domestic cloud space has many Indian start-ups and 20 per cent of the total Indian public cloud market is acknowledged by Indian firms. Industry experts believe that with such strong demand and supply forces, it would not be surprising if cloud accounts for more than 20 per cent of the total Indian IT spend in the years to come.