The document analyzes India's Information Technology (IT) and IT-enabled services industry, highlighting its significant contributions to the economy, with employment of approximately 3.97 million people and projected growth to $350 billion by 2025. It outlines growth drivers such as rising demand for exports, urban infrastructure development, and a large talent pool, while detailing various segments of the IT sector, including IT services and business process management. Additionally, it emphasizes the supportive role of government initiatives, leading companies, and the evolving landscape of the Indian IT industry.

1. Presented by :
Sanjay Mishra M
Siva Sagar M
Bhaskar M
I n d u s t r y A n a l y s i s
Information Technology
&
Information Technology Enabling Services

2. I n d u s t r y A n a l y s i s
C o n t e n t
Table of Content:
Information Technology
Information Technology Enabling Services
Executive Summary
Market Overview
Recent Trends and Strategies
Growth Drivers and Opportunities
Revenue growth of IT companies over years
Sources

3. I n d u s t r y A n a l y s i s
Information Technology
Information technology is playing an important role in India today &
has transformed India’s image as a land of innovative entrepreneurs.
The IT sector in India is generating 2.5 million direct employment.
India is now one of the biggest IT capitals of the modern world and all
the major players in the world IT sector are present in the country.
It is estimated that the Indian IT industry would grow to
about $300 billion by 2020, with software services and e-commerce
leading the race. Government of India has taken several initiatives to
promote the industry and several of the states have extended several
benefits to the industry members.

4. I n d u s t r y A n a l y s i s
IT Growth factors
1. Strong growth in demand for exports from new verticals.
2. Rapidly growing urban infrastructure has fostered several IT centers in the country.
3. Expanding economy to propel growth in local demand.
4. Indian IT firms have delivery centers across the world.
5. IT & ITeS industry is well diversified across verticals such as BFSI (Banking, Financial Services & Insurance), telecom and
retail.
6. Increasing strategic alliance between domestic and international players to deliver solutions across the globe.
7. Cost savings of 60–70 per cent to source countries.
8. Availability of cheap and skillful labor make India a preferred destination for IT & ITeS in the world, continues to be a leader
in the global sourcing industry with 55 per cent market share.
9. Tax exemption of three years in a block of seven years to start-ups under ‘Startup India’.
10.More liberal system for raising global capital, funding for seed capital and growth and ease of doing business, etc. have
been addressed.

5. I n d u s t r y A n a l y s i s
Executive Summary
Large contribution to the Indian economy
India’s IT industry contributed around 7.7 per cent to the country’s GDP. IT industry employs
nearly 3.97 million people in India of which 175,000 were added in FY17. The industry added
around 1,05,000 jobs in FY18 and is expected to add over 100,000 jobs in FY19.
IT industry is fueling the growth of startups in India, with the presence of more than 5,200
startups in India.
Leading sourcing destination
India is the leading 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.
India acquired a share of around 38 per cent in the overall Business Process Management (BPM)
sourcing market.

6. I n d u s t r y A n a l y s i s
Executive Summary Cont..
Largest pool of ready to hire talent
India’s highly qualified talent pool of technical graduates is one of the largest in the world,
facilitating its emergence as a preferred destination for outsourcing, computer
science/information technology accounts for the biggest chunk of India' fresh engineering talent
pool, with more than 98 per cent of the colleges offering this stream.
Most lucrative sector for investments.
Export and employment growth
Indian IT exports are projected to grow at 7-8 per cent in 2017-18. IT-BPM sector accounts for
largest share in total Indian services export, which is 45 per cent.

7. I n d u s t r y A n a l y s i s
EVOLUTION OF THE INDIAN IT SECTOR
Pre-1995
By early 90s, US-based companies began to outsource work on
low-cost and skilled talent pool in India.
1995-2000
With increased investment in R & D, India became a product
development destination.
2000-05
Firms in India grew in terms of their size and scope of services
offered as more and more western companies setup their bases in
the country.

8. I n d u s t r y A n a l y s i s
EVOLUTION OF THE INDIAN IT SECTOR
2005-2016
Firms in India became multinational companies with delivery
centers across the globe
India’s IT sector is at an inflection point, moving from enterprise
servicing to enterprise solutions
2017
The US$ 167 billion Indian IT industry employs nearly four million
people.
India ranks third among global start-up ecosystems with more than
5,200 start-ups.
Indian IT and BPM industry is expected to grow to US$ 350 billion
by 2025

9. I n d u s t r y A n a l y s i s
SEGMENTS OF INDIA’S IT SECTOR
IT services
Market Size: US$ 86 billion during FY18.
Over 81 per cent of revenue comes from the export market.
BFSI continues to be the major vertical of the IT sector.
IT services had around 51.7 per cent share in total Indian IT sector
revenues in FY18.
Business Process Management
Market size: US$ 32 billion during FY18.
Around 87 per cent of revenue comes from the export market.
Market size of BPM industry to reach US$ 54 billion by FY25.
BPM segment had around 19.2 per cent share in Indian IT sector
revenues in FY18.

10. I n d u s t r y A n a l y s i s
SEGMENTS OF INDIA’S IT SECTOR
Software products and engineering services
Market size: US$ 33 billion during FY18.
Over 83.9 per cent of revenue comes from exports.
The software products and engineering services segment grew 10.5
per cent in FY17.
It had around 19.8 per cent share in Indian IT sector revenues in FY18.
Hardware
Market size: US$ 15.4 billion in FY18.
The domestic market accounts for a significant share.
The segment had around 9.3 per cent share in Indian IT sector
revenues in FY18.

11. I n d u s t r y A n a l y s i s
INDIA’S IT MARKET SIZE GROWING
IT BPM industry revenues (excluding hardware) was estimated at around US$ 154 billion in FY 2016-17 and
grew to US$ 167 billion in FY 2017-18.
The contribution of the IT sector to India’s GDP stood at 7.9 per cent in 2017-18.
The top 5 IT firms contribute over 25 per cent to the total industry revenue Rs 8.4 lakh crore (US$ 131.11
billion) as of 2017, indicating the market is competitive.
The domestic revenue of the IT industry is estimated at US$ 41 billion and export revenue is estimated at US$
126 billion in FY 18.
Export revenue of the IT industry grew to US$ 126 billion in FY18 from US$ 117 billion in FY17. It is further
expected to increase 7-9 per cent y-o-y to US$ 135-137 billion in FY19.

12. I n d u s t r y A n a l y s i s
INDIA’S IT MARKET SIZE GROWING
The market size of India’s IT-BPM sector is expected to grow
to US$ 350 billion by 2025.
Spending on Information Technology in India is expected to
grow over 9 per cent to reach US$ 87.1 billion in 2019.*

13. I n d u s t r y A n a l y s i s
IT AND BPM ACCOUNT FOR 79.7 PER CENT OF INDIA’S IT & ITeS EXPORTS
Total exports from the IT-BPM sector (including hardware) were estimated to have been US$ 126 billion during
FY18; exports rose at a CAGR(Compound annual growth rate ) of 12.26 per cent during FY09–18.
Export of IT services has been the major contributor, accounting for 55.56 per cent of total IT exports
(including hardware) during FY18.
Exports from the sector are expected to reach US$ 135-137 billion in FY19.
The government has identified Information Technology as one of 12 champion service sectors for which an
action plan is being developed. Also, the government has set up a Rs 5,000 Cr (US$ 745.82 million) fund for
realizing the potential of these champion service sectors.
 As a part of Union Budget 2018-19, NITI Aayog is going to set up a national level program that will enable
efforts in AI* and will help in leveraging AI* technology for development works in the country.
Latest Government Initiatives

14. I n d u s t r y A n a l y s i s
Global Distribution of IT & Ites

15. I n d u s t r y A n a l y s i s
Top Best IT- Companies in India:
1. TCS – Tata Consultancy Services
2. Infosys
3. Wipro
4. HCL Technologies
5. Tech Mahindra
6. Oracle Financial Services
7. Mind tree

16. I n d u s t r y A n a l y s i s
T C S
Established in 1968, Tata Consultancy Services (TCS) is an
Information Technology (IT) services, consulting and business
solution company. The company’s business is spread across the
Americas, Europe, Asia-Pacific and Middle East and Africa (MEA).
TCS accounts for nearly half of the Indian IT industry’s combined
market capitalization. In April 2018, the company became the first
Indian company to cross US$ 1 billion in market capitalization.

17. I n d u s t r y A n a l y s i s
T C S c o n t .
Became the first Indian company to cross US$ 100 billion in market capitalization in
2018.
Present CEO and managing director: Rajesh Gopinathan
Chairman: N. Chandrasekaran
As of 2017, it is ranked 10th on the Fortune India 500 list.
In 2015, TCS is ranked 64th overall in the Forbes World's Most Innovative
Companies ranking, making it both the highest-ranked IT services company and the
top Indian company.It is the world's 2nd largest IT services provider.
Became the first software company in India to cross US$ 1 billion revenue; Issued
IPO in the market in India and raised US$ 1.2 billion in 2004

18. I n d u s t r y A n a l y s i s
In f o s y s
Infosys, founded in the year 1981 has been headquartered in
Bengaluru, India.
1. CEO: Salil Parekha
2. Founded: July 2, 1981, Pune
3. Headquarters: Bengaluru
Founders: N. R. Narayana Murthy, K. Dinesh, Nandan Nilekani,
Ashok Arora, S. D. Shibulal, Kris Gopalakrishnan, N. S. Raghavan
,Subsidiaries: Infosys BPO Limited, Panaya, Lodestone
Management Consultants, Infosys China, Infosys Australia

19. I n d u s t r y A n a l y s i s
In f o s y s C o n t . .
It is a home to more than 175000 people with many famous Indian personalities coming from its
structure like Mr. Narayan Murthy, Nandan Nilekani to name a few. It is a major powerhouse that
operates into business consulting, information technology, software engineering and outsourcing
services.
Presently headed by Vishal Sikka, Infosys has signed an MOU with local Chinese provincial to open first
overseas campus in China. Infosys has nearly 890 clients across 50 countries according to latest data
known till 31st March, 2014. It can boast of world’s largest corporate university in Mysore. It get ranked
constantly in the world’s top 20 most innovative companies list brought out by Forbes and green
companies ranking by Newsweek.

20. I n d u s t r y A n a l y s i s
Thank You