Last Updated: July 02, 2018
Last Updated: June, 2018
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is theleading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world.
More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, cost savings of 60–70 per cent over source countries, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India.
India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country.
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by fast adoption of digital technology, according to a report by National Association of Software and Services Companies (NASSCOM).
Indian IT exports increased to US$ 126 billion in FY18 while domestic revenues (including hardware) advanced to US$ 41 billion.
Indian IT and BPM industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.
Total spending on IT by banking and security firms in India is expected to grow 8.6 per cent year-on-year to US$ 7.8 billion by 2017!!.
India’s Personal Computer (PC) shipment advanced 11.4 per cent year-on-year to 9.56 million units in 2017 on the back of rise in the quantum of large projects.
Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.
Indian IT's core competencies and strengths have attracted significant investments from major countries. The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows US$ 29.825 billion from April 2000 to December 2017, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain, artificial intelligence to clients using innovation hubs, research and development centres, in order to create differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:
Some of the major initiatives taken by the government to promote IT and ITeS sector in India are as follows:
India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Export revenue of the industry is expected to grow 7-9 per cent year-on-year to US$ 135-137 billion in FY19.
Exchange Rate Used: INR 1 = US$ 0.016 as of FY2018
References: Media Reports, Press Information Bureau (PIB), Department of Industrial Policy and Promotion (DIPP) statistics, Department of Information and Technology, Union Budget 2017-18
Notes: ! - as per a survey by Capgemini and LinkedIn, @- as per a report by Indian Staffing Federation (ISF), $ - according to the MoneyTree India Report by PricewaterhouseCoopers, @@ - according to investment bank Morgan Stanley, ^^ - As per IT industry body National Association of Software and Services Companies (NASSCOM), ^^^ - as per a report by the Confederation of Indian Industry and Deloitte Touche Tohmatsu India LLP, ## - as per a report by NASSCOM and Zinnov Management Consulting Pvt Ltd titled "Start-up India - Momentous Rise of the Indian Start-up Ecosystem"
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Last Updated: July 02, 2018
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