Includes summarized information on the ICT boom in India. The structure of the ICT industry in India, development in ICT sector, the current situation and upcoming technological trends, opportunities, effects of ICT development and the risks involved are discussed

1. ICT BOOM IN INDIA
GROUP PRESENTATION
GROUP 7 – 122081, 122139, 122143

2. 2
Introduction
• India and Indian economy
• Indian ICT sector
IT-ITES,BPO
Electronic Hardware
Telecommunication

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Indian IT-ITES, BPO
• IT, ITES & Business Process Outsourcing sectors
have shown tremendous growth in the past decade
• It is estimated that India has:
- 62% share of USD 68 bn global technology
service market(IT services, Engineering,
R&D)
- 32% share of USD 37 bn global business
outsourcing market

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Electronics Hardware
• The electronics industry include
• semiconductor design
• high-tech manufacturing
• electronic components
• EMS
• electronic systems design for consumer
electronic products
• telecommunication products, etc.

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• The electronic hardware industry in India
is still orientated towards the domestic
market.
• The market is fragmented, lacks a
component base and has infrastructural
barriers with high cost of finance and high
technological obsolescence.

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Telecommunication
• India is the world’s second-largest telecom
market.
• The telecom market can be classified as:
• Wireless
• Landline (wired line)
• Internet and broadband
• Value added services
• ILD/NLD enterprise data
• Telecom equipment
• Infrastructure

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ICT Research & Development
• The entry of R&D centers into India started in the mid-
1980s
• Today, over 600 Multinational Companies are sourcing
product development and engineering services from their
centers in India
• Multinational firms dominate the innovation space through
their Indian R&D centers

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• Large domestic players also provide ‘engineering
services and R&D and software products’ wherein they
undertake product development activities performed for
external clients
• Over 74% of engineering services, R&D and software
products revenue is from exports.

9. 9
Government Policies and
Initiatives
• By encouraging foreign participation in most sectors of
the economy, policy makers in India have placed
following initiatives.
- Copyright protection and cyber laws were
included in the comprehensive Information
Technology (IT) Act introduced in 2000
- Creation of software parks, Special economic
zones and knowledge sector industrial
estates with relaxed regulatory and tax
structures

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• Introduction of Information Technology Investment
Regions (ITIRs) schemes in 2008 under which
each state in India can set up an integrated
township for facilitating growth of IT / BPO, with
provision of world-class infrastructure, supported
by investor-friendly policies

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Emerging Technologies
• Emerging technologies are,
Cloud computing
Business intelligence
Mobility
Social media
• They are transforming businesses and sparking
a new wave of wealth creation, particularly in
the emerging world.

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Cloud Computing
• Cloud Computing is a concept newly developed
in the IT domain and is growing at a very fast
pace across the world
• This technology allows for much more efficient
computing by centralizing storage, memory,
processing and bandwidth

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• Under the cloud computing concept, services can
be availed under following three categories,
1. Software as a Service (SaaS)
2. Platform as a Service (PaaS)
3. Infrastructure as a Service (IaaS)
• The major challenges that the cloud companies
have to face in India are around data security and
reliability, lack of customization, lack of training and
support and poor market reach

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Business Intelligence
• India is the fastest growing Business
Intelligence (BI) Platforms market in Asia
Organizations are turning into BI as a vital tool
for smarter, more agile and efficient business
• They increase the current usage scenario from
just an information delivery mechanism

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• In a booming economy, business intelligence offers
value over and above the natural growth rate, and this is
where a huge untapped market lies in India
• While the market poses a huge opportunity, the lack of
definition or agreement of what and how to
measure/analyze the business will continue to inhibit
successful deployments, discouraging organizations
from further investing in BI
• Right pricing, awareness and customization of BI
Solutions especially for SMEs would be key challenges
for solution providers

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Mobility
• Enterprise mobility (EM) is the biggest single trend
across the tech industry investment
• EM market in India is set to witness a major boom
in its adoption in the ensuing years
• Rapid change in the business models of
organizations and demand to engage a better and
competent mobile workforce is primarily propelling
adoption of EM in the market

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• Adoption of EM applications in the intra-
enterprise space is low but gaining momentum
• India is still at a stage where only a few sectors
like retail and BFSI are using mobility apps for
conventional areas like sales force automation
and transaction management
• Other early adopter market segments include
Pharmaceuticals, Transportation and Logistics
sectors

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Social Media
• The social media marketing has shown a tremendous
growth in the recent time with majority of companies
adopting business models around social media,
using the platform to market events, generate sales,
introduce innovative concepts and even create a new
market for their brands online
• A survey by Nielsen found that 70% of social media
users in India accessed a social networking site
every day

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• 89% of 15-20 year old users accessed a social
networking site every day and 60% of them
spend at least half an hour on it daily
• 37% of heavy social media users in India (who
use it multiple times a day) fall in the age group
of 21-30 years
• The world top sites for social media in India are:
Facebook, Twitter, Blogger, YouTube and
Wikipedia

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India’s Current Growth
Potential and opportunities
in IT sector

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• Indian domestic market is still heavily dominated by
voice-based services
• ICT-enabled solutions in healthcare, education,
financial services and public services can drive socio-
economic inclusion
• India is one of the leading offshore destinations in
delivering engineering research and development
(ER&D) services with a market share of 22 per cent
• The information technology (IT) and business process
outsourcing (BPO) sector of India is expected to
register a growth of 11 per cent

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• The public cloud services market in India is projected to
grow
• India has become a key contributor in global research and
of growth in the Asia-Pacific (APAC) region
• With more attractive and investor-friendly industrial
policies and foreign direct investment (FDI) policies, India
has become one of the favorite destinations for ICT
investment portfolios.

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Investment Opportunities
in Indian ICT Sector
• Investment is being done in four key sectors They
are,
Software merchandise
Information technology based services
Information technology services
Online businesses
• The constant rise in investment by Small and Medium
Enterprises
• Investment for good quality and efficient mobile
broadband services with enhanced speed in order to
satisfy internet users

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Government Initiatives to
Encourage Foreign
Investment in ICT Sector

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• The Public Private Partnership and several government initiatives
have helped to curtail the gap between Research & Development
and Infrastructure segments in ICT industry
• The important fiscal incentives offered by the Indian government
in this sector are Software Technology Parks (STP), Export-
Oriented Units (EOUs) and Special Economic Zones (SEZ)
• Recently, R&D promotion has been encouraged by the
government in very aggressive and efficient way
• Apart from the current scheme of financing R&D projects, the
government has also put in place two more schemes – Multiplier
Grants Scheme (MGS) and Support International Patent
Protection in Electronics & IT (SIP-EIT)

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• Indian government is planning to modify foreign direct
investment norms by permitting 100% FDI in Indian
telecom sector. Currently, FDI of up to 100% is permitted
in following sectors –
Internet Service Providers not offering gateways
Infrastructure Providers offering Dark Fiber
Electronic Mail
Voice Mail
• The Cabinet has given approval to National Policy on IT
2012 which is projected to leverage the ICT to deal with
developmental and economic challenges of the country.

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• The objectives of the National Policy on Information
Technology include:
- To transform India into a global hub for the expansion of
language technologies
- To develop a pool of 10 million skilled manpower in the
Indian ICT sector
- To achieve significant market share in global
technologies and services
- To offer fiscal benefits to foreign investors and Small
Medium Enterprises (SMEs)
- To promote adoption of ICTs in strategic and economic
sectors to enhance the productivity and competitiveness
of ICT

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Effects of ICT boom in
India

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 Promote innovation and R&D in cutting edge technologies
and develop applications and solutions in location based
services, mobile value added services, cloud computing,
social media and utility models
 has triggered a chain of growth in all sectors of the
Industry
 massive educated and technology focused workforce
which is leading India to become one of the top economies
of the world by 2020

30. 30
Risks
Economic Risks
 Economic uncertainty
The economy has shown correlation with global sentiment
 Inflation
The inflation has been high in the last years
 Currency
The Indian Rupee continues to be volatile. Significant
fluctuations have created uncertainties for import-export
oriented businesses.

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Land and Infrastructure
 The projections of further expansion in key areas will have a
further impact on the strained lines of transportation.
 The key problems include power demand shortfall, port traffic
capacity mismatch and poor road conditions
Energy Risks
• Inefficient power
• Import Dependency

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National Risks
 Political stability
In past several decades no single party has been able to gain
the majority of seats in general elections and therefore coalition
governments have ruled the nation
 Regional sources of Instability
The situation in the state of Jammu Kashmir and relationship of
India with the neighbor Pakistan is one of the major sources of
instability in the region.
 Increased number of terrorist incidents

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