The IT & ITeS sector in India has grown significantly over the past decade and is expected to continue expanding rapidly. It is currently a $160 billion industry that exports over $100 billion annually, with the US being the largest importer of Indian IT services. The sector is dominated by a few large players that generate around half of total revenues. Important trends in the industry include the growth of global delivery centers, increased focus on R&D and engineering services, a shift to non-linear business models, and the adoption of new technologies. The industry is transforming from traditional outsourcing to offering broader digital solutions.
The IT & ITeS sector in India has grown significantly over the past decade and is expected to continue expanding rapidly. Some key points:
- The sector grew at a CAGR of 13.7% from 2010-2016 and is estimated to reach $350 billion by 2025, making it one of the largest sectors in India.
- India has become a leading global sourcing destination, accounting for 56% of the global services sourcing market in 2015 due to its large talent pool and cost advantages.
- The top segments are IT services, BPM, software products & engineering services, which together generated an estimated $160 billion in revenues in FY2016.
The document provides an overview of the IT & ITeS sector in India. Some key points:
- The sector has grown at a CAGR of 13.7% over 2010-2016 and is estimated to reach $350 billion by 2025, making it one of the largest sectors in India.
- India has become a leading global sourcing destination, accounting for 56% of the global services sourcing market share in 2015. It is also a major exporter, with the US being the largest importer at over 62% of Indian IT exports.
- The sector employs over 3.7 million people directly and over 10 million indirectly as of 2016. It ranks among the top sectors for FDI and
The IT & ITeS sector in India is large and growing, with the market size expected to reach USD350 billion by 2025. India has a strong advantage in the sector due to its large talent pool and competitive costs. The key segments of the sector are IT services, business process management, software products and engineering services, and hardware. Major trends in the sector include India maintaining its position as a global sourcing hub, a shift to newer technologies and business models, and growth in engineering offshoring and the startup ecosystem.
The document provides an overview of India's IT & ITeS sector. It highlights that the sector has grown at a CAGR of 13.7% over 2010-2016, outpacing global growth. India is a leading sourcing destination globally, accounting for 56% of the global services outsourcing market. The sector contributes significantly to India's GDP and exports. It is also the largest private sector employer and most attractive sector for foreign investment. Emerging technologies are further driving growth opportunities in the industry.
The document discusses recent trends in India's IT & ITeS sector. It notes that India has a large global delivery model with over 670 global delivery centers across 78 countries. India has a 56% market share in global services sourcing and a 38% share of the BPM sourcing market, making it a leading sourcing destination worldwide. The IT & ITeS sector also attracts significant foreign investment, ranking 4th in India's total FDI and accounting for 37% of private equity investments in the country.
The document discusses key trends in India's IT & ITeS sector:
1. India maintains a leading position as a global sourcing hub with 56% of the market share and 670 global delivery centers across 78 countries.
2. Large players are gaining an advantage by expanding from simple maintenance to full service offerings including infrastructure and consulting.
3. New technologies like cloud, analytics, and social media are providing new growth avenues for IT companies, with the SMAC market expected to reach $225 billion by 2020.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT-BPM sector grew at a CAGR of 13.7% from 2010-2016, higher than global growth, and is estimated to reach $350 billion by 2025.
- India has a large talent pool of technical graduates and is a leading global sourcing destination, accounting for 56% of the global services sourcing market.
- The sector contributes significantly to India's GDP and FDI, and is a major job creator in the country. Key verticals include BFSI, telecom, and manufacturing.
The IT & ITeS sector in India has grown significantly over the past decade. Some key points:
- The size of the Indian IT & ITeS sector was estimated to be US$ 155 billion in FY17, growing at a CAGR of 11.14% from 2009-10.
- India has emerged as a global sourcing leader, accounting for 55% of the global services sourcing market in 2016-17.
- The IT & ITeS sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people.
The IT & ITeS sector in India has grown significantly over the past decade and is expected to continue expanding rapidly. Some key points:
- The sector grew at a CAGR of 13.7% from 2010-2016 and is estimated to reach $350 billion by 2025, making it one of the largest sectors in India.
- India has become a leading global sourcing destination, accounting for 56% of the global services sourcing market in 2015 due to its large talent pool and cost advantages.
- The top segments are IT services, BPM, software products & engineering services, which together generated an estimated $160 billion in revenues in FY2016.
The document provides an overview of the IT & ITeS sector in India. Some key points:
- The sector has grown at a CAGR of 13.7% over 2010-2016 and is estimated to reach $350 billion by 2025, making it one of the largest sectors in India.
- India has become a leading global sourcing destination, accounting for 56% of the global services sourcing market share in 2015. It is also a major exporter, with the US being the largest importer at over 62% of Indian IT exports.
- The sector employs over 3.7 million people directly and over 10 million indirectly as of 2016. It ranks among the top sectors for FDI and
The IT & ITeS sector in India is large and growing, with the market size expected to reach USD350 billion by 2025. India has a strong advantage in the sector due to its large talent pool and competitive costs. The key segments of the sector are IT services, business process management, software products and engineering services, and hardware. Major trends in the sector include India maintaining its position as a global sourcing hub, a shift to newer technologies and business models, and growth in engineering offshoring and the startup ecosystem.
The document provides an overview of India's IT & ITeS sector. It highlights that the sector has grown at a CAGR of 13.7% over 2010-2016, outpacing global growth. India is a leading sourcing destination globally, accounting for 56% of the global services outsourcing market. The sector contributes significantly to India's GDP and exports. It is also the largest private sector employer and most attractive sector for foreign investment. Emerging technologies are further driving growth opportunities in the industry.
The document discusses recent trends in India's IT & ITeS sector. It notes that India has a large global delivery model with over 670 global delivery centers across 78 countries. India has a 56% market share in global services sourcing and a 38% share of the BPM sourcing market, making it a leading sourcing destination worldwide. The IT & ITeS sector also attracts significant foreign investment, ranking 4th in India's total FDI and accounting for 37% of private equity investments in the country.
The document discusses key trends in India's IT & ITeS sector:
1. India maintains a leading position as a global sourcing hub with 56% of the market share and 670 global delivery centers across 78 countries.
2. Large players are gaining an advantage by expanding from simple maintenance to full service offerings including infrastructure and consulting.
3. New technologies like cloud, analytics, and social media are providing new growth avenues for IT companies, with the SMAC market expected to reach $225 billion by 2020.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT-BPM sector grew at a CAGR of 13.7% from 2010-2016, higher than global growth, and is estimated to reach $350 billion by 2025.
- India has a large talent pool of technical graduates and is a leading global sourcing destination, accounting for 56% of the global services sourcing market.
- The sector contributes significantly to India's GDP and FDI, and is a major job creator in the country. Key verticals include BFSI, telecom, and manufacturing.
The IT & ITeS sector in India has grown significantly over the past decade. Some key points:
- The size of the Indian IT & ITeS sector was estimated to be US$ 155 billion in FY17, growing at a CAGR of 11.14% from 2009-10.
- India has emerged as a global sourcing leader, accounting for 55% of the global services sourcing market in 2016-17.
- The IT & ITeS sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT-BPM sector expanded at 11.14% annually to US$ 155 billion in FY17, and is estimated to reach US$ 350 billion by 2025.
- India has approximately 55% share of the global IT services sourcing market and 38% share of the BPM sourcing market, making it a prominent sourcing destination.
- The IT sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT-BPM sector expanded at 11.14% annually to US$ 155 billion in FY17, and is estimated to reach US$ 350 billion by 2025.
- India has approximately 55% share of the global IT services sourcing market and 38% share of the BPM sourcing market, making it a prominent global sourcing destination.
- The IT sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people.
India remains a preferred destination for information technology (IT) and information technology enabled services (ITeS) in the world. The Indian IT- business process management (BPM) sector is estimated to expand at a compounded annual growth rate (CAGR) of 9.5 per cent to reach US$ 300 billion by 2020. Over 2000-13, the sector has increased at a CAGR of 25 per cent.
Total exports from the IT- BPM sector (excluding hardware) are estimated at US$ 76 billion during FY13. Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports.
Demand from emerging countries is expected to show strong growth going forward. Tax holidays are also extended to IT sector for software technology parks of India (STPI) and special economic zones (SEZs). Further, the country is providing procedural ease and single window clearance for setting up facilities. The country’s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market.
Disruptive technologies present an entire new gamut of opportunities for IT firms in India. Cloud represents the largest opportunity under Social, Mobility, Analytics and Cloud (SMAC), increasing at a CAGR of approximately 30 per cent to around US$ 650–700 billion by 2020. Social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020.
The IT & ITeS sector in India is growing rapidly and is expected to reach $350 billion by 2025. India has become a global leader in IT & ITes exports, accounting for approximately 55% of the global sourcing market. The country has a large talent pool of technical graduates and is a preferred destination for outsourcing. The IT & ITeS industry contributes significantly to India's GDP and is one of the largest job creators in the country.
- The IT-BPM sector in India has expanded at a CAGR of 11.14% from 2010-2017, reaching US$ 155 billion in FY2017. It is estimated to reach US$ 350 billion by 2025.
- India has approximately 55% of the global sourcing market share and 38% of the overall BPM sourcing market, making it a leading destination for outsourcing.
- The IT sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people. It is one of the largest sectors for FDI and fuels growth of startups in India.
The document provides an overview of the IT & ITeS sector in India. Some key points:
- The size of the Indian IT-BPM sector grew from US$ 74 billion in FY10 to US$ 167 billion in FY18 and is estimated to reach US$ 350 billion by 2025.
- India has emerged as a preferred destination for outsourcing, with over 55% of the global services sourcing market share in FY18. It also accounts for 38% of the global BPM sourcing market.
- The computer software and hardware sector attracted $32.23 billion in FDI between April 2000-June 2018, making it one of the most lucrative sectors for investment in
The IT & ITeS sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% from 2010-2018 to reach $167 billion in size. India has emerged as a global leader in the IT & ITeS sector, accounting for 55% of the global sourcing market. Key factors driving growth include India's large talent pool of technical graduates and the sector's ability to attract significant foreign investment. The sector employs over 3.97 million people and contributes around 7.7% to India's GDP. IT & ITeS exports from India have also grown rapidly and are expected to reach $135-137 billion in FY2019.
The IT & ITeS industry in India has seen strong growth and is poised for further expansion. Some of the key points from the document are:
- The Indian IT-BPM sector expanded at a CAGR of 10.71% from 2010-2018 to reach US$ 167 billion, and is estimated to reach US$ 350 billion by 2025.
- India has a 55% share of the global services sourcing market and 38% share of the overall BPM sourcing market, making it the leading destination for outsourcing.
- The sector contributes around 7.7% to India's GDP and employs nearly 4 million people. Exports are projected to grow 7-8%
The IT & ITeS sector in India has grown significantly over the past decade. Some key points:
- The size of the Indian IT-BPM industry was estimated at US$ 154 billion in FY17 and is projected to reach US$ 350 billion by 2025.
- India has a large talent pool that allows it to be one of the leading destinations for outsourcing. The sector employs around 3.9 million people.
- Exports are a major part of the industry, estimated at US$ 117 billion in FY17. The key export segments are IT services and BPM.
The IT & ITeS sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% from $74 billion in FY10 to $167 billion in FY18. India has emerged as the leading destination for outsourcing, accounting for 55% of the global services sourcing market. The country's large talent pool of technical graduates supports the growth of the sector. The IT industry employs nearly 4 million people and contributes around 7.7% to India's GDP. Exports from the sector have also grown substantially, increasing at a CAGR of 12.26% between FY09-18.
The document discusses India's IT & ITeS sector. It highlights that the sector has grown at a CAGR of 10.71% from 2010 to 2018. India is the leading sourcing destination globally, accounting for 55% of the global IT services market share. The country's large talent pool and low costs have made it an attractive outsourcing hub. The sector employs over 3.97 million people and contributed around 7.7% to India's GDP in 2018. Exports from the sector are projected to reach $135-137 billion in 2018-19, growing at a CAGR of 12.26% from 2009 to 2018. Banking and financial services is a major vertical. The US accounts for
The IT & ITeS sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% from US$74 billion in 2010 to US$167 billion in 2018. India has emerged as a global outsourcing hub, accounting for 55% of the global sourcing market. The sector employs over 3.97 million people and is expected to add over 100,000 new jobs in 2019. New technologies such as cloud, analytics and mobility offer significant growth opportunities for the sector.
The IT-BPM sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% between FY10-FY18 to reach a size of US$ 167 billion. India has become the leading destination for IT and BPM services globally, accounting for 55% of the global sourcing market. Some key factors that have driven this growth include India's large talent pool in technical skills, low costs compared to other countries, and strong focus on exports. The IT industry is expected to continue growing and contribute significantly to India's GDP, employing millions of professionals.
The document discusses India's IT & ITeS sector. Some key points:
- The Indian IT-BPM sector grew at a CAGR of 10.71% from 2010-2018 to reach $167 billion, and is estimated to reach $350 billion by 2025.
- India is the leading sourcing destination globally, with 55% market share of the $185-190 billion global services outsourcing business.
- India's large talent pool of technical graduates and low costs make it an attractive destination for outsourcing. The sector contributes significantly to GDP and employment.
The Indian IT-ITes industry grew at 32% in FY2007-2008, clocking revenues of $52 billion. It is projected to reach $60 billion in exports by FY2009-2010. The industry employs over 2 million people directly and is expected to employ 4 million directly and 12 million indirectly by 2015. Key segments include IT services, ITES-BPO services, and software development. The industry faces challenges from economic slowdowns, currency appreciation, and over-reliance on the US market.
The document provides an overview of the IT and ITES sector in India from an economic perspective. It discusses key aspects of the sector such as its economic activity and contribution to GDP, industry landscape, geographical distribution, and challenges. The IT and ITES sector is a major contributor to India's economy, accounting for over 5% of GDP and employing millions of workers. While the sector has grown significantly in recent decades, it faces challenges from increasing global competition and costs that threaten its continued growth.
The IT & ITeS industry in India has grown significantly in recent years. It expanded at a CAGR of 10.71% from FY10 to FY18 to reach US$ 167 billion. India is the leading sourcing destination globally, accounting for 55% of the global IT services market. The industry is expected to continue growing rapidly and reach US$ 350 billion by 2025. It contributes around 7.7% to India's GDP currently.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT industry grew at a CAGR of 10.71% from 2010-2018 and is estimated to reach $350 billion by 2025, making it a strong growth opportunity.
- India is the leading global sourcing destination, accounting for 55% of the $185-190 billion global services market in 2017-18.
- The sector employs nearly 4 million people in India and added over 105,000 jobs in 2018.
The IT & ITeS sector in India has grown significantly over the past decade. It is estimated to reach $350 billion by 2025, growing at a CAGR of 10.71%. India has emerged as a global outsourcing hub, accounting for 55% of the global sourcing market. The sector employs nearly 4 million people and contributes around 7.7% to India's GDP. Key verticals include BFSI, telecom and retail. Exports have grown at 12.26% annually and were estimated at $126 billion in FY2018 with the US as the largest importer.
Indian IT and ITeS Industry Presentation 010709Workosaur.com
The IT & ITeS industry in India grew at 33% in FY2008. It contributed an estimated 5.5% to India's GDP in FY2008, up from 1.2% in FY1998. The industry was on track to earn $64 billion in revenues in FY2008, a CAGR of 31% over the past 5 years. India has emerged as a global leader in the IT & ITeS industry, topping various indices due to its breadth of service offerings, quality processes, cost advantages, and strong talent pool. The country is well-positioned to move further up the value chain from back-office services to become a global innovation hub.
The IT & ITeS sector in India has grown significantly over the past decade and is expected to continue expanding rapidly. Some key points:
- The sector grew at a CAGR of 13.7% from 2010-2016, much higher than the global average, and is estimated to reach $350 billion by 2025.
- India has become a leading global sourcing destination, accounting for 56% of the global services market in 2015. It is also the top location for engineering offshoring.
- The sector employs over 3 million people directly and over 10 million indirectly, making it one of the largest job creators in the economy.
The document provides an overview of India's IT & ITeS sector. Some key points:
- The sector is growing rapidly, with revenues estimated to reach $160 billion in FY2016 and projected to reach $350 billion by FY2025.
- India has become a leading global sourcing destination, accounting for around 56% of the global services sourcing market.
- The IT & ITeS sector employs over 3 million people directly and over 10 million indirectly and supports thousands of startups.
- Key segments of the sector include IT services, business process management, software products & engineering services, and hardware. IT services account for the largest share.
- Exports are the major driver of
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT-BPM sector expanded at 11.14% annually to US$ 155 billion in FY17, and is estimated to reach US$ 350 billion by 2025.
- India has approximately 55% share of the global IT services sourcing market and 38% share of the BPM sourcing market, making it a prominent sourcing destination.
- The IT sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT-BPM sector expanded at 11.14% annually to US$ 155 billion in FY17, and is estimated to reach US$ 350 billion by 2025.
- India has approximately 55% share of the global IT services sourcing market and 38% share of the BPM sourcing market, making it a prominent global sourcing destination.
- The IT sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people.
India remains a preferred destination for information technology (IT) and information technology enabled services (ITeS) in the world. The Indian IT- business process management (BPM) sector is estimated to expand at a compounded annual growth rate (CAGR) of 9.5 per cent to reach US$ 300 billion by 2020. Over 2000-13, the sector has increased at a CAGR of 25 per cent.
Total exports from the IT- BPM sector (excluding hardware) are estimated at US$ 76 billion during FY13. Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports.
Demand from emerging countries is expected to show strong growth going forward. Tax holidays are also extended to IT sector for software technology parks of India (STPI) and special economic zones (SEZs). Further, the country is providing procedural ease and single window clearance for setting up facilities. The country’s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market.
Disruptive technologies present an entire new gamut of opportunities for IT firms in India. Cloud represents the largest opportunity under Social, Mobility, Analytics and Cloud (SMAC), increasing at a CAGR of approximately 30 per cent to around US$ 650–700 billion by 2020. Social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020.
The IT & ITeS sector in India is growing rapidly and is expected to reach $350 billion by 2025. India has become a global leader in IT & ITes exports, accounting for approximately 55% of the global sourcing market. The country has a large talent pool of technical graduates and is a preferred destination for outsourcing. The IT & ITeS industry contributes significantly to India's GDP and is one of the largest job creators in the country.
- The IT-BPM sector in India has expanded at a CAGR of 11.14% from 2010-2017, reaching US$ 155 billion in FY2017. It is estimated to reach US$ 350 billion by 2025.
- India has approximately 55% of the global sourcing market share and 38% of the overall BPM sourcing market, making it a leading destination for outsourcing.
- The IT sector contributes around 7.7% to India's GDP and employs nearly 3.9 million people. It is one of the largest sectors for FDI and fuels growth of startups in India.
The document provides an overview of the IT & ITeS sector in India. Some key points:
- The size of the Indian IT-BPM sector grew from US$ 74 billion in FY10 to US$ 167 billion in FY18 and is estimated to reach US$ 350 billion by 2025.
- India has emerged as a preferred destination for outsourcing, with over 55% of the global services sourcing market share in FY18. It also accounts for 38% of the global BPM sourcing market.
- The computer software and hardware sector attracted $32.23 billion in FDI between April 2000-June 2018, making it one of the most lucrative sectors for investment in
The IT & ITeS sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% from 2010-2018 to reach $167 billion in size. India has emerged as a global leader in the IT & ITeS sector, accounting for 55% of the global sourcing market. Key factors driving growth include India's large talent pool of technical graduates and the sector's ability to attract significant foreign investment. The sector employs over 3.97 million people and contributes around 7.7% to India's GDP. IT & ITeS exports from India have also grown rapidly and are expected to reach $135-137 billion in FY2019.
The IT & ITeS industry in India has seen strong growth and is poised for further expansion. Some of the key points from the document are:
- The Indian IT-BPM sector expanded at a CAGR of 10.71% from 2010-2018 to reach US$ 167 billion, and is estimated to reach US$ 350 billion by 2025.
- India has a 55% share of the global services sourcing market and 38% share of the overall BPM sourcing market, making it the leading destination for outsourcing.
- The sector contributes around 7.7% to India's GDP and employs nearly 4 million people. Exports are projected to grow 7-8%
The IT & ITeS sector in India has grown significantly over the past decade. Some key points:
- The size of the Indian IT-BPM industry was estimated at US$ 154 billion in FY17 and is projected to reach US$ 350 billion by 2025.
- India has a large talent pool that allows it to be one of the leading destinations for outsourcing. The sector employs around 3.9 million people.
- Exports are a major part of the industry, estimated at US$ 117 billion in FY17. The key export segments are IT services and BPM.
The IT & ITeS sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% from $74 billion in FY10 to $167 billion in FY18. India has emerged as the leading destination for outsourcing, accounting for 55% of the global services sourcing market. The country's large talent pool of technical graduates supports the growth of the sector. The IT industry employs nearly 4 million people and contributes around 7.7% to India's GDP. Exports from the sector have also grown substantially, increasing at a CAGR of 12.26% between FY09-18.
The document discusses India's IT & ITeS sector. It highlights that the sector has grown at a CAGR of 10.71% from 2010 to 2018. India is the leading sourcing destination globally, accounting for 55% of the global IT services market share. The country's large talent pool and low costs have made it an attractive outsourcing hub. The sector employs over 3.97 million people and contributed around 7.7% to India's GDP in 2018. Exports from the sector are projected to reach $135-137 billion in 2018-19, growing at a CAGR of 12.26% from 2009 to 2018. Banking and financial services is a major vertical. The US accounts for
The IT & ITeS sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% from US$74 billion in 2010 to US$167 billion in 2018. India has emerged as a global outsourcing hub, accounting for 55% of the global sourcing market. The sector employs over 3.97 million people and is expected to add over 100,000 new jobs in 2019. New technologies such as cloud, analytics and mobility offer significant growth opportunities for the sector.
The IT-BPM sector in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% between FY10-FY18 to reach a size of US$ 167 billion. India has become the leading destination for IT and BPM services globally, accounting for 55% of the global sourcing market. Some key factors that have driven this growth include India's large talent pool in technical skills, low costs compared to other countries, and strong focus on exports. The IT industry is expected to continue growing and contribute significantly to India's GDP, employing millions of professionals.
The document discusses India's IT & ITeS sector. Some key points:
- The Indian IT-BPM sector grew at a CAGR of 10.71% from 2010-2018 to reach $167 billion, and is estimated to reach $350 billion by 2025.
- India is the leading sourcing destination globally, with 55% market share of the $185-190 billion global services outsourcing business.
- India's large talent pool of technical graduates and low costs make it an attractive destination for outsourcing. The sector contributes significantly to GDP and employment.
The Indian IT-ITes industry grew at 32% in FY2007-2008, clocking revenues of $52 billion. It is projected to reach $60 billion in exports by FY2009-2010. The industry employs over 2 million people directly and is expected to employ 4 million directly and 12 million indirectly by 2015. Key segments include IT services, ITES-BPO services, and software development. The industry faces challenges from economic slowdowns, currency appreciation, and over-reliance on the US market.
The document provides an overview of the IT and ITES sector in India from an economic perspective. It discusses key aspects of the sector such as its economic activity and contribution to GDP, industry landscape, geographical distribution, and challenges. The IT and ITES sector is a major contributor to India's economy, accounting for over 5% of GDP and employing millions of workers. While the sector has grown significantly in recent decades, it faces challenges from increasing global competition and costs that threaten its continued growth.
The IT & ITeS industry in India has grown significantly in recent years. It expanded at a CAGR of 10.71% from FY10 to FY18 to reach US$ 167 billion. India is the leading sourcing destination globally, accounting for 55% of the global IT services market. The industry is expected to continue growing rapidly and reach US$ 350 billion by 2025. It contributes around 7.7% to India's GDP currently.
The document provides an overview of India's IT & ITeS sector. Some key points:
- India's IT industry grew at a CAGR of 10.71% from 2010-2018 and is estimated to reach $350 billion by 2025, making it a strong growth opportunity.
- India is the leading global sourcing destination, accounting for 55% of the $185-190 billion global services market in 2017-18.
- The sector employs nearly 4 million people in India and added over 105,000 jobs in 2018.
The IT & ITeS sector in India has grown significantly over the past decade. It is estimated to reach $350 billion by 2025, growing at a CAGR of 10.71%. India has emerged as a global outsourcing hub, accounting for 55% of the global sourcing market. The sector employs nearly 4 million people and contributes around 7.7% to India's GDP. Key verticals include BFSI, telecom and retail. Exports have grown at 12.26% annually and were estimated at $126 billion in FY2018 with the US as the largest importer.
Indian IT and ITeS Industry Presentation 010709Workosaur.com
The IT & ITeS industry in India grew at 33% in FY2008. It contributed an estimated 5.5% to India's GDP in FY2008, up from 1.2% in FY1998. The industry was on track to earn $64 billion in revenues in FY2008, a CAGR of 31% over the past 5 years. India has emerged as a global leader in the IT & ITeS industry, topping various indices due to its breadth of service offerings, quality processes, cost advantages, and strong talent pool. The country is well-positioned to move further up the value chain from back-office services to become a global innovation hub.
The IT & ITeS sector in India has grown significantly over the past decade and is expected to continue expanding rapidly. Some key points:
- The sector grew at a CAGR of 13.7% from 2010-2016, much higher than the global average, and is estimated to reach $350 billion by 2025.
- India has become a leading global sourcing destination, accounting for 56% of the global services market in 2015. It is also the top location for engineering offshoring.
- The sector employs over 3 million people directly and over 10 million indirectly, making it one of the largest job creators in the economy.
The document provides an overview of India's IT & ITeS sector. Some key points:
- The sector is growing rapidly, with revenues estimated to reach $160 billion in FY2016 and projected to reach $350 billion by FY2025.
- India has become a leading global sourcing destination, accounting for around 56% of the global services sourcing market.
- The IT & ITeS sector employs over 3 million people directly and over 10 million indirectly and supports thousands of startups.
- Key segments of the sector include IT services, business process management, software products & engineering services, and hardware. IT services account for the largest share.
- Exports are the major driver of
The IT & ITeS industry in India has grown significantly over the past decade. It expanded at a CAGR of 10.71% between FY10-FY18 to reach US$ 167 billion. India has emerged as the leading sourcing destination globally with a 55% market share of the US$ 185-190 billion global services sourcing business in 2017-18. The domestic market is also growing with increased adoption of new technologies. Exports from the industry are expected to reach US$ 135-137 billion in FY19, driven primarily by growth in IT services exports. Banking and financial services remains the largest vertical.
HR Presentaion of the IT and ITES Sector - 2016Supriyo Das
The document provides information about India's IT sector, including:
- India is the largest sourcing destination for IT, accounting for 67% of the $124-130 billion global market. The industry employs around 10 million workers.
- The IT-BPM sector is valued at around $160 billion and expected to grow at 8.3% annually. It contributes 9.5% to India's GDP.
- The major segments of India's IT sector are IT services, business process management, software products and engineering services, and hardware.
- Major Indian IT companies include Tata Consultancy Services, Infosys, Wipro, HCL and Tech Mahindra. Recruitment processes
Information Technology - Industrial AnalysisSanjay Mishra
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.
The Microsoft Certified Systems Engineer (MCSE) certification demonstrates expertise in designing and implementing Windows infrastructure solutions. The Cisco Certified Network Associate (CCNA) certification validates fundamentals of networking including IP addressing and OSI models. Cisco's CCNP certification focuses on advanced routing and switching skills needed for building converged network infrastructure.
Information Technology and Information Technology Enabled Services SectorVibrant Gujarat
Highlighting the value proposition of the ever growing IT-ITes Sector in India, this presentation gives an overall idea about the future of the sector in India as well as Gujarat. It mentions the various initiatives, incentives and schemes launched by the Government of India and the Government of Gujarat to promote business and investment in the sector.
This document is a report summarizing Shovit Das's summer internship with Max Secure Software. It includes an acknowledgments section thanking those who guided the internship. The report then provides details about Max Secure's products, pricing, distribution channels, and competitors. It also outlines the objectives, methodology, findings, and learnings from Das's project analyzing dealer preferences for antivirus software and conducting a competitor analysis of Max Secure in Kolkata.
India has emerged as a global IT hub due to its strengths in software services and IT outsourcing. The IT industry has experienced tremendous growth, with exports increasing over 30% annually and its contribution to India's GDP rising from 1.2% to 4.8%. Major global tech companies are establishing large R&D centers in India to tap into the talent pool, with investments in these facilities reaching billions of dollars. The rapid growth and spread of the IT industry across India's cities has fueled economic and infrastructure development nationwide.
India has emerged as a global IT hub due to its strengths in software services and IT outsourcing. The IT industry has experienced tremendous growth, with exports increasing over 30% annually and its contribution to India's GDP rising from 1.2% to 4.8%. Major global tech companies are establishing large R&D centers in India to tap into the talent pool, with investments in these facilities reaching billions of dollars. The rapid growth and spread of the IT industry across India's cities has fueled economic and infrastructure development nationwide.
The document provides an executive summary of trends in India's IT & BPM sector:
1. Large Indian IT companies generate around half of total export revenue and employ over a third of the sector's workforce.
2. Emerging technologies like cloud computing, analytics, AI and blockchain are driving new opportunities for growth. India is becoming a leader in data annotation.
3. Key sectors like banking and finance are increasing their adoption of digital technologies and outsourcing of IT services.
This training program aims to impart skills to individuals wishing to become web developers. Upon successful completion and passing an assessment, participants will receive a certificate qualifying them for entry-level IT roles. The document provides an overview of the objectives, which include explaining the purpose and scope of the IT industry in India. It discusses the evolution and growth of the Indian IT sector, highlighting its advantages and the opportunities in newer geographies and verticals. The growing market size of the Indian IT industry is also presented, expected to reach $350 billion by 2025.
Similar to IT and ITeS Sector Report May 2017 (14)
Tamil Nadu has a strong and growing economy, as evidenced by its GSDP which grew at a CAGR of 11.46% between 2011-12 and 2018-19, reaching Rs. 16.06 trillion (US$ 222.58 billion) in 2018-19. The state has a diversified industrial base and thriving services sector, especially in IT/ITeS. It also has robust infrastructure including roads, ports, airports, and an emphasis on further infrastructure development. With various initiatives like Vision 2023, Tamil Nadu aims to boost its economy and attract significant domestic and foreign investments over the coming years.
India has become the second largest steel producer in the world in 2018. Steel production and capacity in India have grown rapidly over the past decade, with capacity reaching 137.98 million tonnes in 2017-18. Consumption has also increased steadily, driven by growth in infrastructure, automotive, and other sectors. The government has implemented policies like the National Steel Policy to encourage further capacity growth to 300 million tonnes by 2030-31. Low per capita consumption compared to other countries also provides significant potential for further demand growth.
The document provides an overview of India's services sector, including:
1) The services sector contributes over 50% of India's GDP and grew at 12.75% in 2018-19, demonstrating its importance as the key driver of India's economic growth.
2) India has a large skilled workforce and is a global outsourcing hub, commanding a 55% share of the global sourcing market, which has helped establish the country as a leading provider of technology and digital services.
3) The government is working to further develop the services sector through initiatives like 'Startup India' and reforms that make India an attractive investment destination for both domestic and foreign investors.
The document provides an overview of the real estate sector in India. It discusses that the real estate sector is expected to reach $1 trillion by 2030 and contribute 13% of India's GDP by 2025. Rapid urbanization is driving demand for residential and commercial real estate space. The residential segment contributes around 80% of the sector currently. Government policies like Housing for All and Smart Cities are further boosting growth.
Rajasthan has experienced strong economic growth in recent years. Between 2011-12 and 2018-19, the state's Gross State Domestic Product grew at a compound annual growth rate of 11.37% to reach $128.1 billion. The tourism industry in Rajasthan is thriving, with over 47.5 million tourist arrivals in 2017, and the state is a leading producer of agro-based products. Rajasthan also has immense potential for renewable energy generation from solar and wind sources.
Indian Railways is the third largest rail network in the world by size. It saw strong revenue growth over the past decade, with freight accounting for over 65% of revenues in FY19. Freight and passenger traffic have both increased steadily in recent years. Various modernization initiatives are underway to upgrade infrastructure and technology. Private sector participation is being encouraged to augment rail connectivity and capacity.
India has the third largest installed power capacity in the world at 356.10 GW as of March 2019. It is the third largest producer and consumer of electricity globally. India has achieved 100% household electrification and aims to increase renewable energy capacity to 175 GW by 2022. Thermal energy accounts for over 63% of total installed capacity, while renewable sources account for 21.8%. The power sector in India is growing rapidly and offers many opportunities for investment and development.
Nagaland has a Gross State Domestic Product (GSDP) of around 0.24 trillion Indian rupees in 2017-18, growing at a CAGR of 11.83% between 2011-12 and 2017-19. The per capita GSDP in 2017-18 was 113,549 rupees, growing at a CAGR of 10.66% in the same period. Nagaland's Net State Domestic Product (NSDP) in 2016-17 was 0.19 trillion rupees, growing at 15.72% between 2011-12 and 2016-17. The per capita NSDP in 2016-17 was 90,168 rupees, growing at 12.
Meghalaya has the highest rainfall in India and diverse soil types that support agriculture. The state has strong potential in floriculture, bamboo processing, and medicinal plants due to its biodiversity. Meghalaya also has large hydroelectric power potential and abundant mineral resources. The state aims to promote industries like agro-processing, horticulture, minerals and tourism to create opportunities for its population.
- The Indian infrastructure sector is experiencing significant growth due to rising government investments and initiatives such as allocating Rs 4.56 lakh crore for infrastructure in the FY 2019-20 budget.
- Private sector participation is increasing across segments like roads, power and airports. Infrastructure sectors like power transmission and renewable energy will drive future investments.
- Improving connectivity through initiatives like Bharatmala Pariyojana and Sagarmala will boost infrastructure growth. 100% villages connectivity through roads is expected by 2019 under PMGSY.
The document provides an overview of the media and entertainment industry in India. Some of the key points from the document are:
- The Indian media and entertainment industry is growing rapidly at a CAGR of 12-13% and is expected to reach Rs. 3.73 lakh crore by 2022.
- Television is the largest segment with a market size of Rs. 740 billion in 2018, expected to reach Rs. 955 billion by 2021. Digital media, animation and VFX, and online gaming are among the fastest growing segments.
- Advantages for the industry in India include rising incomes, evolving lifestyles, a large young population, increasing digitization, and government support through
- The manufacturing sector is a major employer in India and aims to provide 25% of GDP and 100 million new jobs by 2022. It has grown at a CAGR of 4% between FY12-19 and contributes significantly to India's exports.
- The document discusses India's advantage in manufacturing including a large domestic market, favorable demographics, and government initiatives like Make in India. Key sub-sectors, growth drivers and the evolution of the sector are also outlined.
- Recent trends show growth in production, IIP, capacity utilization and exports, indicating the sector is expanding. The government has implemented various policies to develop manufacturing and make India a global hub.
Manipur has a flourishing bamboo processing industry as it is one of India's largest bamboo producing states. It also has a strong handicrafts industry, being home to the highest number of handicraft units and artisans in North East India. Handlooms is the largest cottage industry in Manipur. The state has strong potential for border trade opportunities through Moreh town, which is India's only land route for trade with Myanmar and Southeast Asia. Manipur is also home to the Ema Bazaar, one of India's largest markets run exclusively by women. Due to its natural beauty and biodiversity, Manipur is a popular tourist destination known as the "Switzerland of the East".
The document provides an overview of the economy of Himachal Pradesh, India. Some key points:
- Himachal Pradesh has a strong economic growth rate, with its GSDP reaching Rs. 1.52 trillion (US$21.04 billion) in 2018-19 growing at 11.09% annually.
- The state has a diverse economy with key sectors being tourism, agriculture, and hydroelectric power. Agricultural production and tourism visitor numbers are increasing.
- Himachal Pradesh has a large hydroelectric power potential and is becoming a major hub for hydroelectricity in India, though only around 40% of its potential has been harnessed so far.
Gujarat has experienced high economic growth rates in recent years.
- Gujarat's GSDP grew at a CAGR of 13.55% from 2011-12 to 2016-17, reaching Rs. 11.62 trillion (US$ 173.24 billion) in 2016-17.
- The state's per capita GSDP increased from Rs. 101,075 (US$ 2,108) in 2011-12 to Rs. 178,043 (US$ 2,654) in 2016-17, registering a CAGR of 11.99%.
The document provides an overview of India's gems and jewellery sector. Some key points:
- India is a major player in global gems and jewellery trade, contributing about 7% to India's GDP and employing over 4.6 million people.
- India is the world's largest cut and polished diamond exporter, exporting over 75% of global polished diamonds. It also processes over $23 billion worth of diamonds annually.
- Exports of cut and polished diamonds and gold jewellery have registered steady growth in recent years. Imports have also increased at a CAGR of nearly 8% between 2004-2018.
- The sector is adopting strategies like expanding retail networks, providing financing options
The engineering and capital goods industry in India is growing rapidly. The turnover of the capital goods industry reached $70 billion in 2017 and is forecasted to reach $115.17 billion by 2025. Electrical equipment production is also growing and is expected to reach $100 billion by 2022, up from $27.3 billion in 2017-18. The engineering research and design segment is also expanding, with revenues projected to increase from $28 billion in FY18 to $42 billion in FY22. Growth is being driven by increasing industrialization, infrastructure development, and capacity expansion across various core sectors in India.
Major e-commerce players in India have adopted strategies like expanding into new categories like groceries and used goods, acquiring analytics startups to improve pricing and positioning, and launching ancillary services like payments, logistics and video streaming. They have also introduced subscription models and personalized experiences to provide extra benefits and tailor their offerings to individual customer needs and interests.
Delhi has experienced strong economic growth, with its gross state domestic product increasing at a compound annual growth rate of 12.41% between 2011-12 and 2018-19. The real estate sector has been an important contributor to the state's economy. Delhi also has a growing tourism industry, owing to its historical and cultural attractions. The state government is working to improve infrastructure and implement policies to facilitate industrial development and attract investment across various sectors.
Chhattisgarh has a strong mineral production base and is a leading producer of coal and iron ore in India. It is the only state that produces tin concentrates. The state has emerged as a preferred investment destination and has witnessed strong growth in the agriculture sector. Key sectors driving growth include minerals, power, agriculture and tourism. Chhattisgarh aims to further develop its infrastructure, promote industries and boost skill development to achieve its vision of becoming an industrialized state.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
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BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
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IT & ITeS
MAY 2017 (As of 25 May 2017)
2. 22
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
❖ Executive Summary………………..……..…..3
❖ Advantage India…………………………..........4
❖ Market Overview and Trends………..…........6
❖ Porters Five Forces Analysis………….........17
❖ Strategies Adopted ………………..…..…....19
❖ Growth Drivers………………………….........21
❖ Opportunities... …..........................................33
❖ Success Stories………………………..…….39
❖ Useful Information…………...........................49
IT & ITeS
MAY 2017
3. 33
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY
Strong growth
opportunities
• The IT-BPM sector in India expanded at a CAGR of 13.7 per cent over 2010–16, which is 3–4
times higher than the global IT-BPM growth & is estimated to expand at a CAGR of 9.1 per cent
to USD350 billion by 2025
Leading sourcing
destination
• As of 2015, India is a prominent sourcing destination across the world, accounting for
approximately 56 per cent market share in the global services sourcing business.
• India acquired a share of around 38 per cent in the overall Business Process Management (BPM)
sourcing market
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
• The sector ranks 4th in India’s total FDI share & accounts for approximately 37 per cent of total
Private Equity & Venture investments in the country
Source: NASSCOM, TechSci Research
Notes: BPM – Business Process Management, USP – Unique Selling Proposition
Cash Cow
• In FY16, revenues of Indian IT-BPM market is estimated to touch USD160 billion
• In 2015, Indian IT companies have helped clients to save USD200 billion in the last 5 years.
• India’s IT-BPM sector includes 670 offshore development centres around 78 countries.
5. 55
IT & ITeS
MAY 2017
• The engineering sector is
delicensed; 100 per cent FDI is
allowed in the sector
• Due to policy support, there was
cumulative FDI of USD14.0 billion
into the sector over April 2000 –
February 2012, making up 8.6 per
cent of total FDI into the country
in that period
Growing demand
For updated information, please visit www.ibef.org
ADVANTAGE INDIA
Source: Nasscom, TechSci Research
Notes: SEZ stands for Special Economic Zone, BFSI stands for Banking, Financial Services and Insurance, E stands for Estimate, F stands for Forecast
FY16E
Industry
value:
USD160
billion
FY25F
Industry
value:
USD350
billion
Advantage
India
Global footprints
• IT firms in India have delivery centres across
the world; as of 2015, IT firms had a total of
670 centres in >78 countries
• India’s IT industry amounts to 12.3 per cent
of the global market, largely due to exports
• IT & ITeS industry is well diversified across
verticals such as BFSI, telecom & retail
• Increasing strategic alliance between
domestic & international players to deliver
solutions across the globe
Growing demand
• Strong growth in demand for exports
from new verticals
• Rapidly growing urban infrastructure
has fostered several IT centres in the
country
• Expanding economy to propel growth
in local demand
Policy support
• Tax holidays extended to the IT sector
• More liberal system for raising global capital,
funding for seed capital and growth & ease of
doing business, etc. have been addressed
• USD0.17 billion have been allocated for raising
global capital, start ups
• Income Tax cut on royalty fee on tech services
to 10 per cent
• Cumulative FDI inflow in computer software
and hardware is USD22.83 billion from April
2000 to December 2016
Competitive
advantage
• Cost savings of 60–70 per cent over
source countries
• 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
• The Indian IT industry has saved clients
USD200 billion in the past 5 years
7. 77
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
EVOLUTION OF INDIA’S IT SECTOR
• By early 90s, US-
based companies
began to outsource
work on low-cost &
skilled talent pool in
India
• IT industry started to
mature
• Increased
investment in R&D &
infrastructure started
• India increasingly
seen as a product
development
destination
• The number of firms in
India grew in size &
started offering
complex services such
as product
management & go-to
market strategies
• Western firms set up a
number of captives in
India
• Firms in India became multinational
companies with delivery centres
across the globe (670 centres in >78
countries, as of 2015)
• Indian IT-BPM revenue is likely to
reach USD160 billion in FY16
• Employment in IT sector is expected to
increase & reach 3.7 million people
directly & over 10 million indirectly, as
of FY16
• India’s IT sector is at an inflection
point, moving from enterprise servicing
to enterprise solutions
• The industry is 3rd largest start up base
• In FY16, the IT industry supported over
4,200 new start ups
Pre-1995
1995-2000
2000–05
2005-16
8. 88
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
SEGMENTS OF INDIA’S IT SECTOR
IT & ITeS sector
IT services
Business Process
Management (BPM)
Hardware
• Market Size: USD75
billion during FY16E
• Over 81 per cent of
revenue comes from
the export market
• BFSI continues to be
the major vertical of
the IT sector
• Market size: USD28
billion during FY16E
• Around 87 per cent
of revenue comes
from the export
market
• Market size of BPM
industry is estimated
to rise from USD41
billion in FY20 to
USD54 billion by
FY25
• Market size:
USD13.3 billion
during FY16E
• The domestic market
accounts for a
significant share
• The domestic market
is experiencing
growth as the
penetration of
personal computers
is rising in India
Software products &
engineering services
• Market size: USD27
billion during FY16E
• Over 83.9 per cent
of revenue comes
from exports
Source: Nasscom, TechSci Research
Notes: FY16E – Figures for FY16 are estimated
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IT & ITeS
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24 29 32 32 32
48 52
50
59
69 76 86
98.5
108
FY10 FY11 FY12 FY13 FY14 FY15 FY16E
Domestic Export
For updated information, please visit www.ibef.org
INDIA’S IT MARKET SIZE GROWING; TCS THE MARKET LEADER
India’s technology & BPM sector (including hardware) is
likely to generate revenues of USD160 billion during
FY16 compared to USD146.5 billion in FY15, implying a
growth rate of 9.5 per cent
The contribution of the IT sector to India’s GDP rose to
approximately 9.3 per cent in FY15
TCS is the market leader, accounting for about 10.4 per
cent of India’s total IT & ITeS sector revenue in FY16
The top 5 IT firms contribute over 25 per cent to the total
industry revenue, indicating the market is fairly
competitive
Source: Nasscom, TechSci Research
Note: E - Estimates
Market size of IT industry in India (USD billion)
10. 1010
IT & ITeS
MAY 2017
25.8 25.8 33.5 39.9 43.9 52.0 55.5 61.09.9 11.7
14.1
15.9
17.8
20.0
23.0
24.4
8.8 10.0
11.4
13.0
14.1
14.0
20.0
22.4
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
IT Services BPM Software Products and Engg. Services
56.59%
22.63%
20.78%
IT Services
BPM
Software Products and
Engg. Services
For updated information, please visit www.ibef.org
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 USD108 billion during FY16;
exports rose at a CAGR of 61.68 per cent during FY09–16
Export of IT services has been the major contributor, accounting for 56.59 per cent of total IT exports (including
hardware) during FY16
BPM accounted for 22.63 per cent of total IT exports during FY16
Growth in export revenue (USD billion) Sector-wise breakup of export revenue FY16
Source: Nasscom, Make in India, TechSci Research
Note: E – Estimated
CAGR 61.68%
11. 1111
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
BFSI - A KEY BUSINESS VERTICAL FOR IT-BPM INDUSTRY
BFSI is a key business vertical for the IT-BPM industry. It is expected to generate export revenue of around USD58.32 billion by
the end of 2016, accounting for 54 per cent of total IT-BPM exports from India
Approximately 79 per cent of total IT-BPM exports from India is across 4 sectors: BFSI, telecom, manufacturing & retail. The
hitherto smaller sectors are expected to grow
With introduction of new policies for healthcare & retail, these sectors are expected to grow at a faster pace in coming years, thus
accelerating revenue of IT enabled services for the sectors
Distribution of export revenue across verticals (FY16)
Source: MoRTH, TechSci Research, Department of Electronics and IT Annual Report
Notes: BFSI - Banking, Financial Services and Insurance, *Emerging- Retail, Utilities & Construction, Retail, Healthcare, Services, Transportation
The figures mentioned are for IT and BPM only and do not include engineering services and hardware exports
54%
16%
6%
4%
3%
2%
4% 11%
BFSI
Hi-Tech/Telecom
Manufacturing
Healthcare
Retail
Construction & Utilities
Travel & Transportation
Others
12. 1212
IT & ITeS
MAY 2017
42
12
8
5
2
52
15
10
7
2
61
17
11
8
2
67
18
12
9
2
US UK Europe (Excl.
UK)
APAC RoW
2012 2014 2015 2016
62%
17%
11%
8%
2%
United States
United Kingdom
Continental Europe
Asia Pacific
Rest of World
(RoW)
For updated information, please visit www.ibef.org
WITH OVER 62 PER CENT SHARE, US IS MAJOR IMPORTER OF IT SERVICES
US has traditionally been the biggest importer of Indian IT exports; over 62 per cent of Indian IT-BPM exports were
absorbed by the US during FY16
Non US-UK countries accounted for just 21.0 per cent of total Indian IT-BPM exports during FY16
Europe, one of the fast growing IT markets in 2015, is expected to emerge as a potential market as higher inclination
towards offshoring firms would increase demand for IT services
Being the low cost exporter of IT services, India is going to attract more markets in other regions in the same manner it
tapped US markets
Geographic breakup of export revenue
(USD billion) (March 2016)
Distribution of export revenue across geographies
(FY16)
Source: Nasscom, TechSci Research, Department of Electronics and IT Annual Report
Note: ROW is Rest Of the World, APAC is Asia Pacific
13. 1313
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
IT-BPM SECTOR DOMINATED BY LARGE PLAYERS
Category
Number of
players
Percentage of
total export
revenue
Percentage of
total employees
Work focus
Large 11 47-50% ~35-38%
• Fully integrated players offering complete range
of services
• Large scale operations & infrastructure
• Presence in over 60 countries
Medium 120-150 32-35% ~28-30%
• Mid tier Indian and MNC firms offering services
in multiple verticals
• Dedicated captive centres
• Near shore & offshore presence in more than
30-35 countries
Emerging
~1,000-
1,200
9-10% ~15-20%
• Players offering niche IT-BPM services
• Dedicated captives offering niche services
• Expanding focus towards sub Fortune
500/1,000 firms
Small ~15,000 9-10% ~15-18%
• Small players focussing on specific niches in
either services or verticals
• Includes Indian providers & small niche
captives
Source: Nasscom, TechSci Research
14. 1414
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
NOTABLE TRENDS IN INDIA’S IT & ITES SECTOR … (1/3)
• Indian software product industry is expected to reach the mark of USD100 billion by 2025.
In India, the number of global delivery centres in the IT-BPM sector reached 670,
spreading out across 78 countries, as of 2015
• New business models, technologies & addition of new markets is pushing growth; Infosys
has opened a shop in Shanghai; TCS already has a big set-up in Uruguay
Global sourcing hub • India continues to maintain a leading position in the global sourcing market. Its market
share increased to 55 per cent in 2015. India’s IT industry amounts to 7 per cent of the
global market
Engineering offshoring
• In 2015, India continued to be the most preferred location for global R&D outsourcing, with
a share of 56 per cent
• The sector includes 670 Offshore Development Centres (ODCs) around 78 countries
Most lucrative sector
for investments
• Increased focus on R&D by IT firms in India resulted in rising number of patents filed by
them. In 2016, Indian IT-BPM sector is expected to grow 9.2 per cent since last year &
reach USD160 billion
• In May 2017, the government approved the proposal of Twin Star Technologies with an
FDI investment of USD1.34 billion, through a combination of equity, compulsory
convertible preference shares and debentures. The investment is likely to generate
indirect and direct employment for around 30,000 people.
Global delivery
model
1 - conducted by Nasscom
15. 1515
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
Changing business
dynamics
• India’s IT market is experiencing a significant shift from a few large-size deals to multiple small-size
ones
• The number of start-ups in technology is expected to reach 50000, adding to around 2 per cent of
GDP
• Delivery models are being altered, as the business is moving to capital expenditure (capex) based
models from operational expenditure (opex), from a vendor’s frame of reference
Large players gaining
advantage
• Large players with a wide range of capabilities are gaining ground as they move from being simple
maintenance providers to full service players, offering infrastructure, system integration &
consulting services
• Of the total revenue, about 80 per cent is contributed by 200 large & medium players
New technologies
• Disruptive technologies, such as cloud computing, social media & data analytics, are offering new
avenues of growth across verticals for IT companies
• The SMAC (social, mobility, analytics, cloud) market is expected to grow to USD225 billion by 2020
Growth in non-linear
models
• India’s IT sector is gradually moving from linear models (rising headcount to increase revenue) to
non-linear ones
• In line with this, IT companies in India are focusing on new models such as platform-based BPM
services and creation of intellectual property
NOTABLE TRENDS IN INDIA’S IT & ITES SECTOR … (2/3)
16. 1616
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
Consumerisation of IT
• Global outsourcing is being used to drive fundamental re-engineering of end-to-end
processes
• Increased emphasis on beyond cost benefits
• IT firms in the current phase have moved up the value chain, providing innovation-led
growth to clients from SLA satisfaction & RoI calculations
Emergence of Tier II
cities
• Tier II & III cities are increasingly gaining traction among IT companies, aiming to establish
business in India
• Cheap labour, affordable real estate, favourable government regulations, tax breaks &
SEZ schemes facilitating their emergence as a new IT destination
• Giving rise to the domestic hub & spoke model, with Tier I cities acting as hubs & Tier II, III
& IV as network of spokes
SMAC technologies, an
inflection point for
Indian IT
• Social, Mobility, Analytics & Cloud (SMAC), a paradigm shift in IT-BPM approaches
experienced until now, is leading to digitisation of the entire business model
Notes: SLA - Service Level Agreement; RoI - Return on Investment
NOTABLE TRENDS IN INDIA’S IT & ITES SECTOR … (3/3)
Rural Development • The National Optical Fibre Network (NOFN) is being laid down in phases to connect all the
250,000 gram panchayats in the country
Make in India
• In May 2017, the central government announced to launch a policy named as Phased
Manufacturing Programme (PMP), which was developed by the Ministry of Electronics &
Information Technology (MeitY) with an aim to boost the manufacturing of cell phones in
the country. In 2016-17, the total value of cell phones to be produced in India is expected
to reach USD13.39 billion as compared to USD 8.03 billion in 2015-16.
18. 1818MAY 2017 For updated information, please visit www.ibef.org
PORTERS FIVE FORCES ANALYSIS
Competitive Rivalry
• Intense competitive rivalry exists due to low switching costs
• Most of the bigger Indian firms offer same services and there is little
product differentiation
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• Easy entry as the capital
required is low
• Large players, however,
toughen prospects of small and
medium players to win large
deals
• Bargaining power of suppliers
is less as most of their
businesses come from the
same geographies
• Price taker rather than price
maker
• Bargaining power is high as
many IT firms fight for a similar
project
• Firms are mostly dependent on
same geography, which
increases customer power
• Threat is medium as new
centres, such as Philippines
and China, are fast gaining
ground among investors due to
their low cost advantages
Competitive
Rivalry
(High)
Threat of New
Entrants
(Medium)
Substitute
Products
(Medium)
Bargaining
Power of
Customers
(High)
Bargaining
Power of
Suppliers
(Low)
IT & ITeS
20. 2020MAY 2017 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED
IT & ITeS
• Companies are expanding their business to Tier II & III cities to have low cost advantage
• In 2016, Infosys bought 2 office space in Pune & Bengaluru India. TCS is planning to expand in
Mumbai
• Companies are expanding their business towards emerging economies of East Europe & Latin
American countries
• Social Computing, Mobility, Analytics & Cloud (SMAC) is taking significant leaps
• Companies are getting into this field by offering big data services, which provides clients better
insights for future cases
• Most of the IT companies have been offering similar products & services to their clients
• The companies are working towards product differentiation through various other services by
branding themselves, e.g. Building Tomorrow's Enterprise by Infosys
• Indian IT firms have started to adopt pricing strategies to compete with Global firms like IBM &
Accenture
• Companies are now investing a lot in R&D and training employees to create an efficient workforce,
enhancing productivity & quality
• R&D forms a significant portion of companies’ expenses, which is critical when margins are in
pressure, to promote innovations in the changing landscape
Expanding in Tier II & III
cities and externally
Movement to SMAC &
digital space
Product and Pricing
differentiation
Promotion of R&D
• Knowledge services, data analytics, legal services, Business Process as a Service (BPaaS),
cloud-based services
Fast-growing sectors
within the BPM domain
22. 2222
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
IT SECTOR TO BE DRIVEN BY STRONG DEMAND AND INDIAN EXPERTISE
Growth
drivers
Talent
pool
Domestic
growth
Infrastructure
Global
demand
Policy
support
• Computer penetration expected to
increase
• Increasing adoption of technology &
telecom by consumers & focused
government initiatives leading to
increased ICT adoption
• 6 million graduates are estimated to have been
added to India’s talent pool in FY16, wherein, IT-
BPM employees are estimated to reach 3.7 million.
• Strong mix of young & experienced professionals
• Global BPM spending estimated to
rise & reach to USD233 billion by
2020
• Tax holidays for STPI and SEZs
• More liberal system for raising
capital, seed money & ease of doing
business.
• As a part of Union Budget 2016-17,
the government has made changes
in custom & excise duty of IT
hardware products
• Robust IT infrastructure across
various cities in India such as
Bengaluru
• Technology mission for services in
villages & schools, training in IT
skills & E-Kranti for government
service delivery & governance
scheme
Source: Nasscom, TechSci Research
Notes: STPI stands for Software Technology Park of India, SEZ stands for Special Economic Zone,
ICT - Information and communications technology, IT-BPM – Information Technology Business Process Management
23. 2323
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
TECHNOLOGY – A KEY INFLUENCER FOR DOMESTIC IT SERVICES … (1/2)
IT Sector Segmental Breakup - By Companies (FY15)
Indian IT companies like TCS, Tech Mahindra Ltd.,
Mphasis, HCL Technologies Ltd., L & T Infotech Ltd., Wipro
Technologies Ltd., Oracle Financial, Infosys Technologies
Ltd. are expanding their footprint in order to meet client’s
requirements globally.
Indian firms have started adopting the global delivery model
to cater to local market & for taking advantage of low cost
In April 2017, Google has launched an app “Areo” to
aggregate food delivery & home services start-ups in India.
The app is operational in Bangalore & Mumbai only. It has
partnered with Faasos, Box8, Freshmenu, Zimmber &
Urbanclap.
Dentsu Aegis Network acquired SVG Media Pvt. Ltd. in
April 2017.
Subscriber base of local language users in smartphones in
India has increased over the past few years, with 90 per
cent of new internet users are opting for non-English
language. As per the Google, the number of non-English
users will surpass those using English by 2021.
Tech Mahindra has entered into a strategic alliance with
Metric Stream, a US-based firm, with an aim to provide
governance, risk & compliance solutions across the world
Source: Nasscom, Assorted News Articles, TechSci Research
68.0%
18.0%
14.0%
Indian Service Providers
(TCS, Infosys, Wipro,
HCL, etc)
Global inhouse centers
(EMC, Fordm Boeing,
Honeywell, etc)
Multinational
Corporations (IBM,
Accenture, HP,
Microsoft, etc)
24. 2424
IT & ITeS
MAY 2017
48 52
100
FY15 FY16E FY20F
For updated information, please visit www.ibef.org
TECHNOLOGY – A KEY INFLUENCER FOR DOMESTIC IT SERVICES … (2/2)
Domestic revenue from IT and BPM (USD billion)Introduction of large e-Governance projects to provide
better services through IT & focus on the formation of the
cyber policy led to higher demand for IT & hardware from
the government
The Central Government & State/UT Government
allocated 0.9–1.2 per cent & 2.8–3 per cent,
respectively, of total budget for IT spend under the
12th Five Year Plan
Strong consumer demand for IT service & products:
Advent of smartphones, tablets & iPads
Industry leaders are stressing the need for
promoting support start-ups
Rising computer literate population
Enhanced internet & mobile penetration
Growing disposable income strengthening consumer
purchasing power
Emerging verticals (retail, healthcare, utilities) are
driving growth above 14 per cent
Source: Nasscom, TechSci Research
Notes: UT - Union Territory, E:Estimated F - Forecasts
25. 2525
IT & ITeS
MAY 2017
86
99
108
FY14 FY15 FY16E
For updated information, please visit www.ibef.org
EXPORTS TO REMAIN ROBUST AS GLOBAL IT INDUSTRY MAINTAINS GROWTH
Export revenue from IT and BPM (USD billion)In FY16 the estimated revenue from exports of IT & BPM
sector was USD108 billion. Global IT-BPM spending
(excluding hardware) has grown 0.4 per cent over 2015 to
nearly USD1.2 trillion
India’s IT industry amounts to 4.26 per cent of the global
market, largely due to exports as of 2015. In 2015 India
comprised of around 500 BPM players generating a
revenue of USD23 billion, which is expected to reach 50
billion in 2020
During FY17 the country’s revenue growth in IT exports is
expected at 10 per cent
Emergence of SMAC would provide USD1 trillion market by
2020
Emerging economies are likely to be a major contributor to
IT spend growth
IT spend in emerging economies to grow 3-4 times
faster than advanced economies
The BRIC IT market is estimated at USD380–420
billion by 2020
Stable tax regime, reducing litigation related to tax &
providing conducive environment for start-ups will improve
the business environment
Source: Nasscom, TechSci Research, Budget 2015-16
Notes: UT- Union Territory, E - Estimated
Core and non core segment’s growth prospects
22 11 1.2 7.6
3.2 3.1
35 15 2 13
5.5 5.5
CADM ER&D IT consulting IS-
sourcing
Knowledge
services
Software
testing
FY13E FY16F
Core segments Emerging segments
17%
10%
20% 20% 21%
19%
26. 2626
IT & ITeS
MAY 2017
3.7
4.0
4.4
4.7
5.3
5.8 6.0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
For updated information, please visit www.ibef.org
INDIAN TALENT POOL READY TO TAKE IT SECTOR TO THE NEXT LEVEL … (1/2)
Graduates addition to talent pool in India (in millions)Availability of skilled English speaking workforce has
been a major reason behind India’s emergence as a
global outsourcing hub
During FY10-16, number of graduates addition to talent
pool in India grew at a CAGR of 8.39 per cent
India added more than 6 million graduates to the talent
pool during FY16
Growing talent pool of India has the ability to drive the
R&D & innovation business in the IT-BPM space
According to India Hiring Intent Survey 2017, 5 to 10 per
cent increase in hiring by BPO/KPO & ITES companies in
Karnataka, is anticipated in the coming year
Source: Nasscom, TechSci Research
Note: Graduates includes both graduates and post graduates
27. 2727
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
INDIAN TALENT POOL READY TO TAKE IT SECTOR TO THE NEXT LEVEL … (2/2)
About 2 per cent of the industry revenue is spent on training employees in the IT-BPM sector
USD1.6 billion is spent annually on training workforce and growing R&D spend
Forty per cent of total spend on training is spent on training new employees
Numerous firms have forged alliances with leading education institutions to train employees
28. 2828
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
NASSCOM’S PLAN TO INCREASE EMPLOYABILITY OF INDIA’S TALENT POOL
Source: Nasscom, TechSci Research
Notes: NAC – Nasscom Assessment of Competence, IIIT - Indian Institutes of Information Technology
Objectives Initiatives
• Enhance overall yield of employees
• Improve employability
• Expand to Tier II cities to reduce operating
costs
• Low skill dependence
• Industry to enhance investment in training
• Use NAC & NAC – Tech to assess
employability of talent pool
• Identified new tier II locations
• Reduce investment on training
• Develop specialist & project management
expertise
• Develop a robust & credible information
repository
• Launched the National Faculty Development
Programme to increase suitability of faculty
• Aiding industry access to specialist
programmes offered by independent agencies
• NASSCOM, in partnership with the industry,
has developed a unique initiative ’National
Skills Registry’ a national database of
registered & verified knowledge workers in the
industry
• Expand education capacity
• Promote reforms in education
• Expansion of higher education infrastructure;
20 new IIITs to be set up by the government
• Programme to increase PhDs in technology
Short term
Medium term
Long term
29. 2929
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
SEZ’S TO DRIVE IT SECTOR; TIER II CITIES EMERGE AS NEW CENTERS … (1/2)
Characteristics of STPI and SEZ in India
IT-SEZs have been initiated with an aim to create zones
that lead to infrastructural development, exports &
employment
As on 31st March 2017, there were over 218 operational
SEZs across the country
Parameters STPI SEZ
Term • 10 years • 15 years
Fiscal
benefits
• 100 per cent
tax holiday on
export profits
• Exemption
from excise
duties &
customs
• 100 per cent
tax holiday on
exports for 1st
5 years
• Exemption
from excise
duties and
customs
Location &
size
restrictions
• No location
constraints
• 23 per cent
STPI units in
tier II & III
cities
• Restricted to
prescribed
zones with a
minimum area
of 25 acres
Source: Nasscom, TechSci Research,
STPI (Software Technology Parks of India)
30. 3030
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
IT sector employment distribution
in Tier I and Tier II/III cities
Cost in newer cities is expected to be 28 per cent lower than that in
leading cities
Lower cost & attrition, affordable real estate & support from local
government, such as tax breaks, STPI & SEZ schemes, are
facilitating this shift of focus
Over 50 cities already have basic infrastructure & human resource to
support the global sourcing & business services industry
Some cities are expected to emerge as regional hubs supporting
domestic companies
In December 2016, vocational education programme was introduced
in Odisha’s 208 secondary schools. The programme includes 4
vocational streams, including IT & ITeS, Travel, Retail & Tourism,
Banking, Financial Services & Insurance.
Odisha Government signed a MoU with Software Technology Parks
of India (STPI) for setting up 4 software technology centres
To encourage cash less economy, the government to distribute free
Wi-fi service to more than 1000 gram panchayats in remote areas
In February 2017, Persistent Systems, a Pune-based company,
secured development rights to a number of patented innovations for
enhancing security of financial services from The United Services
Automobile Association (USAA)
Trends in tier II and III cities
1,821 1,615
175
3,230
2008 2018
Tier I locations Tier II/III locations
Source: Nasscom, E&Y, TechSci Research
SEZ’S TO DRIVE IT SECTOR; TIER II CITIES EMERGE AS NEW CENTERS … (2/2)
31. 3131
IT & ITeS
MAY 2017
180
460
710
760
790
825
1025 1050
2000 2005 2010 2012 2013 2014 2015 2016
For updated information, please visit www.ibef.org
TREMENDOUS GROWTH OF GLOBAL IN–HOUSE CENTRES
Number of GIC’s in India
Global In-House Centres (GIC), also known as captive
centres, are one of the major growth drivers of the IT-BPM
sector in India. They also operate in engineering services &
software product development.
In March 2016, there were over 1050 GICs operating out of
India, contributing almost 20 per cent share in exports. The
total GICs in the country generated a revenue of almost
USD22 billion & employed a total of more than 0.79 million
manpower
The impact of the segment goes beyond revenue &
employment, as it helped in developing India as a R&D hub
& create an innovation ecosystem in the country
Within the captive landscape, Engineering Research &
Development/Software Product Development (ER&D/SPD)
is the largest sub-segment
Companies from North America & Europe are major
investors in the captive segment in India, accounting for
over 90 per cent of captives in the country
Key highlights
Source: Zinnov, Nasscom, TechSci Research
32. 3232
IT & ITeS
MAY 2017
0.8
1.9
3.2
2.2
5
9
5
2008 2011 2012 2013 2014 2015 2016
104
137
161
262
235
294
38.38 40.9 40.76 50.38 53 43.2
FY11 FY12 FY13 FY14 FY15 FY16
Number of Deals Share of IT-BPM
For updated information, please visit www.ibef.org
IMPRESSIVE GROWTH PROSPECTS SUSTAIN PE AND VC INTEREST
PE-VC investments in IT & BPM (USD billion)
Total P/E investments in FY16 were observed to be USD5 billion, which increased at a CAGR of 25.7 per cent from USD0.8
billion in FY08
Total number of P/E investment deals increased from 235 in FY15 to 294 in FY16
Source: Venture Intelligence, Nasscom, TechSci Research
Notes: CAGR – Compound Annual Growth Rate
Share of IT-BPM in PE-VC investments
34. 3434
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
NEWER GEOGRAPHIES AND VERTICALS PROVIDE HUGE OPPORTUNITIES
Source: All the figures are taken from International Data Corporation (IDC)
and Nasscom and are FY10 estimates
Note: SMB - Small and Medium Businesses
• BRIC nations, continental Europe,
Canada & Japan have IT spending of
approximately USD380–420 billion
• Adoption of technology & outsourcing
is expected to make Asia the 2nd
largest IT market
• Government, healthcare, media &
utilities together have IT spend of
approximately USD190 billion, but
account just 8 per cent of India’s IT
revenue
• Non-linear growth due to platforms,
products & automation
• Emerging verticals (retail, healthcare,
utilities) are driving growth
• SMBs have IT spend of approximately
USD230–250 billion, but contribute just
25 per cent to India’s IT revenue
• The emergence of new service
offerings and business models would
aid in tapping market profitably &
efficiently
New
verticals
New
customer
segments
New
geographies
35. 3535
IT & ITeS
MAY 2017
76
86
99
108
119-121
FY13 FY14 FY15 FY16E FY17P
13.0
4.0 4.0
13.0 14.0
55.0
23.0
20.0
0.5
IT services BPM Packaged
software,
ER&D and
product
development
Hardware eCommerce
Domestic
Exports
For updated information, please visit www.ibef.org
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH … (1/4)
IT-BPM Exports Revenue (USD Billion)
Traditional verticals, i.e. BFSI, telecommunication & manufacturing, continue to remain the largest in terms of IT adoption & are
expected to grow at an average of 15 per cent
Implementation of cloud environment & mobility is the way forward for traditional verticals
Emphasis on other emerging verticals (e.g. education, healthcare & retail) to aid growth in IT firms in India
Shift from IT adoption infrastructure, automation & digitisation to smart IT marks future trend of services in emerging verticals
Other untapped sectors like Education & utilities has a huge potential for IT & ITes to grow into
Source: Nasscom, TechSci Research
Note: E – Estimated, P – Projected
Indian IT-BPM (Domestic and Export)
Revenues (2015)
36. 3636
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH … (2/4)
Market size of other progressing verticals by 2020
(USD billion)
Govt. sectors have a huge potential for IT enabled services, as IT
penetration is low in the sector. Increasing digitalisation will lead to
growth in revenues for IT sector in coming years
Technologies, such as telemedicine, health, remote monitoring
solutions & clinical information systems, would continue to boost
demand for IT service across the globe
IT sophistication in the utilities segment & the need for standardisation
of the process are expected to drive demand
Digitisation of content & increased connectivity is leading to a rise in
IT adoption by media
Companies to focus on local problems & find engineering solutions
RBI is executing a plan to reduce online transaction costs to
encourage digital banking in India
In March 2017, the government set a target of achieving 25 billion
digital transactions for banks with the help of PoS machines,
transactions enabled & merchants, which have been added in firms.
In March 2017, Samsung launched a mobile payment service, through
which it facilitates the customers to make payments at numerous retail
locations instead of using mobile wallets, credit or debit cards.
In 2017, ICICI Bank announced plans to create 600 digital villages in
India by the year end, to motivate use of digital transactions in remote
areas. Also, the government launched Bharat Interface for Money app
which helps customers to transact through mobile phones.
Source: Nasscom, TechSci Research
Note: Small and Medium Business
250
90
58
25
17
SMB
Government
Healthcare
Utilities
Media
37. 3737
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH … (3/4)
Growing technologies future growthEmerging technologies present an entire new gamut of
opportunities for IT firms in India
SMAC provide USD1 trillion opportunity
Cloud represents the largest opportunity under SMAC,
increasing at a CAGR of approximately 30 per cent to
around USD650–700 billion by 2020
Social media is the 2nd most lucrative segment for IT
firms, offering a USD250 billion market opportunity by
2020
Source: Nasscom, TechSci Research
Note: Size of bubble indicates market size, *CAGR and market size for
Big data/analytics is till 2015
Cloud
Social Media
Enterprise
mobility
Big
data/analytics*
10%
20%
30%
40%
50%
60%
0 200 400 600 800
38. 3838
IT & ITeS
MAY 2017 For updated information, please visit www.ibef.org
Emerging geographies would drive the next growth phase for IT firms in India
BRIC would provide USD380–420 billion opportunity by 2020
Focus on building local credible presence, high degree of domain expertise at competitive costs & attaining operational
excellence hold key to success in new geographies
Emphasis on export of IT services to current importers of other products & services
Source: Nasscom, TechSci Research
Countries offering growth potential to IT firms
Country IT spend India’s penetration Key segments
Canada USD63 billion ~1.5 per cent Enterprise applications, cyber security, healthcare IT
Europe USD230 billion <1.5 per cent IT sourcing, BPM, IS outsourcing, CAD
Japan USD235 billion <1 per cent CRM, ERP, Salesforce automation, SI
Spain USD26 billion <1.5 per cent IT sourcing, SI
Mexico USD29 billion ~4 per cent IT sourcing, BPM
Brazil USD47 billion ~2 per cent Low level application management, artificial intelligence, R&D
China USD105 billion <1 per cent Software outsourcing, R&D
Australia USD48 billion ~4 per cent Procurement outsourcing, infrastructure software & CAD
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH … (4/4)
40. 4040
IT & ITeS
MAY 2017
40%
17%
15%
12%
9%
5%
3%
Application development and
maintenance
(ADM)
Enterprise solutions (ES) &
consulting
Infrastructure services (IS)
Business process services
(BPS)
Assurance services
Engineering and industrial
services (EIS)
Asset leveraged solutions
For updated information, please visit www.ibef.org
TCS: AN EMERGING GLOBAL IT MAMMOTH … (1/3)
Segment-wise revenue breakdown (FY16)
Established in 1968, Tata Consultancy Services (TCS) is an
Information Technology (IT) services, consulting & business
solution company. The company provides end-to-end
technology & technology-related services to global
enterprises. The company’s business is spread across the
Americas, Europe, Asia-Pacific & Middle East & Africa
(MEA)
In April 2017, TCS has approved a buyback plan for
US$2.38 billion. The shares represent 2.85 per cent in the
buyback of the total equity capital at US$42.39 per share.
Achievements:
2016: Won 3 Silver Stevies at 14th Annual American
Business Awards
2015: Gold, Silver & Bronze Stevie® Winner at the
American Business Awards
2014: Gold & Silver Stevie® Winner at the American
Business Awards
2013: Won Best Performing Consultancy Brand Award in
Europe
2013: Received Red Hat North America Awards for System
Integrator Partner of the Year
Source: TCS website and Annual Report, TechSci Research
41. 4141
IT & ITeS
MAY 2017
638
290
211
121
52
17
714
354
231
136
53
24
791
381
261
162
68
29
829
429
298
173
73
37
USD1 Mn+ USD5 Mn+ USD10
Mn+
USD20
Mn+
USD50
Mn+
USD100
Mn+
FY13 FY14 FY15 FY16
6 6.3
8.2
10
12
13
15
16.6
1.4 1.7 2.3 2.8 3.1
3.9 4.1 4.4
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Revenue Operating Profit
For updated information, please visit www.ibef.org
TCS: AN EMERGING GLOBAL IT MAMMOTH … (2/3)
Source: TCS website and Annual Report, TechSci Research
TCS accounts for nearly half of the Indian IT industry’s
combined market capitalisation
During the second quarter of FY 2016-17, the company
reported a net profit of USD 989 million, showing a
growth of 8.4 per cent.
Leading IT players by revenue (FY16)
Company name Revenue (USD billion)
TCS 16.6
Infosys 9.5
Wipro 7.8
HCL Tech 4.7
Tech Mahindra 4.04
Financial performance (USD Billion) Number of Customers
42. 4242
IT & ITeS
MAY 2017
FY12
Acquired
microDAT
A GIS
For updated information, please visit www.ibef.org
TCS: AN EMERGING GLOBAL IT MAMMOTH … (3/3)
Source: TCS website and Annual Report, TechSci Research
Energy resources
& utilities
Life sciences &
healthcare
Manufacturing
Media &
entertainment
Retail & consumer
packaged goods
BFSI
Consolidation of
market position
through CMC
acquisition
Issued IPO in the
market in India &
raised USD1.2
billion in 2004
Acquisition of IT
service firm Alti in
France in 2013
Expanded of
geographic
presence
1968
India’s 1st
software service
company
FY03
Became the 1st
software company
in India to cross
USD1 billion
revenue
FY15
USD15.7
Billion
revenue
FY13
Active client
base: 1,156
New clients:
153
FY16
USD16.60
Billion
revenue
1968 2001 2003 2005 2007 2010 2013 2015 2016
With a brand
value of over
USD1 billion,
consolidated its
position as one
of the largest IT
players
FY14
USD13.5
Billion
revenue
43. 4343
IT & ITeS
MAY 2017
39.9%
36.2%
18.7%
5.2%
Application
Services
Infrastructure
Services
Engineering and
R&D Services
Business Services
For updated information, please visit www.ibef.org
HCL: GROWING BY LEAPS AND BOUNDS … (1/3)
Segment-wise revenue breakdown (March 16)
Established in 1991, HCL Technologies Ltd is an IT
services company providing enterprise & custom
application, business transformation, infrastructure
management, business process outsourcing & engineering
services. The company’s network of 26 offices is spread
across the US, Europe & Asia Pacific
Achievements:
2015: Won Golden Peacock Award for Occupational Health
& Safety
2015: Winner of CII - National Award for Excellence in
Energy Management
2015: Wins 2 CA Technologies Partner Awards
2014: Received Best Governed Company Award from Asian
Centre for Corporate Governance & Sustainability
2013: Won IT Europa, European IT Excellence Awards &
Asia Pacific Enterprise Leadership Award 2013
Source: HCL Technologies website and Investor Presentation,
TechSci Research
45. 4545
IT & ITeS
MAY 2017
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
For updated information, please visit www.ibef.org
Life sciences &
healthcare
Media
Retail & consumer
packaged goods
Telecom
Manufacturing
Financial services
FY16
Revenue
reached
USD4.7
Billion
USD100 million+
clients reached 5
Organic growth
through prudent
strategies
Adoption of non-
linear strategy;
formation of JVs
and alliances
Acquisition of
Capitalstream &
AXON Group
Diversification of
business &
geography mix
1997
Established with
spun-off HCL’s
R&D business
FY06
Signed the
biggest ever
software
service deal
with DSG
FY09
Launched
IPO
Source: HCL Technologies website and Annual Report, TechSci Research
HCL: GROWING BY LEAPS AND BOUNDS … (3/3)
FY15
HCL
Technologies
came in joint
venture
agreement
with CSC
FY14
HCL forays
into healthcare
with the
launch of HCL
Healthcare
FY15
Revenue
crossed
USD5.5 Billion
46. 4646
IT & ITeS
MAY 2017
33%
23%
19%
17%
8%
Financial Services and
Insurance (FSI)
Manufacturing (MFG)
Energy & Utilities,
Communication and
Services (ECS)
Retail, Consumer,
Packed Goods and
Logistics (RCL)
Life Sciences and
Healthcare (LSH)
For updated information, please visit www.ibef.org
INFOSYS: EMERGENCE OF AN INDIA-BASED MNC … (1/3)
Segment-wise revenue breakdown (FY16)
Established in 1981, Infosys Ltd. is engaged in consulting,
engineering, technology & outsourcing services. The company’s
end-to-end services include consulting & system integration.
Infosys operates through 30 offices across India, the US, China,
Australia, the UK, Canada & Japan
Achievements:
FY16: Revenue crosses USD9.5 billion
FY15: Revenue crosses USD8.7 Billion
2016: Infosys was recognised with “Corporate Citizen of the Year”
at 2015 Economic Times Award
2015: Infosys would offer software solutions on Verizon Cloud for
the U.S. Bank
2015: Infosys completed the implementation of Smart Oilfield
Services Solutions for FTS International
2014: Infosys secured the “Green Energy Award” & “Gold Award”
at the International Ashden Awards Ceremony
2013: Ranked 1st in the annual Euromoney Best Managed
Companies in Asia survey
Source: Infosys website and Annual Report, TechSci Research
In November 2016, Infosys invested around USD4.89
million in a venture fund, Stellaris Venture Partners,
so as to gain access to new & innovative technology
offered by upcoming enterprises.
48. 4848
IT & ITeS
MAY 2017
1981 1992 1995 1998 2002 2008 2012 2016
For updated information, please visit www.ibef.org
Logistics and
distribution
Industrial
manufacturing
Healthcare,
pharmaceuticals &
biotech
Financial service
Automotive
Aerospace, defence
& airlines
Organic growth
Expansion across
the world and
offshore business
Acquisition of
Lodestone Holding
AG
Strong
diversified
client base of
890 clients in
FY14
Large client
acquisitions
1981
Founded in
Pune with an
initial capital of
USD250
1993
Launched
IPO
FY15
USD8.7
Billion
turnover
1999
Reached
USD100 million
& listed on
NASDAQ
Source: Infosys website and Annual Report, TechSci Research
INFOSYS: EMERGENCE OF AN INDIA-BASED MNC … (3/3)
FY12
Listed on the
NYSE market
FY16
USD9.5
Billion
turnover
50. 5050
IT & ITeS
MAY 2017
INDUSTRY ASSOCIATIONS
National Association of Software and Services
Companies (NASSCOM)
Address: International Youth Centre Teen Murti Marg,
Chanakyapuri, New Delhi – 110 021
Phone: 91 11 2301 0199
Fax: 91 11 2301 5452
E-mail: info@nasscom.in
For updated information, please visit www.ibef.org
51. 5151
IT & ITeS
MAY 2017
GLOSSARY … (1/2)
APAC: Asia Pacific
BFSI: Banking, Financial Services and Insurance
BPM: Business Process Outsourcing
CAGR: Compounded Annual Growth Rate
C&U: Construction & Utilities
FDI: Foreign Direct Investment
GOI: Government of India
INR: Indian Rupee
IT & ITeS: Information Technology-Information Technology Enabled Services
NAC: Nasscom Assessment of Competence
RoI: Return on Investment
ROW: Rest of the World
SEZ: Special Economic Zone
SLA: Service Level Agreement
For updated information, please visit www.ibef.org
52. 5252
IT & ITeS
MAY 2017
SMB: Small and Medium Businesses
STPI: Software Technology Parks of India
T&M: Telecom & Media
T&T: Travel and Transport
USD: US Dollar
USP: Unique Selling Proposition
UT: Union Territory
Wherever applicable, numbers have been rounded off to the nearest whole number
For updated information, please visit www.ibef.org
GLOSSARY … (2/2)
53. 5353
IT & ITeS
MAY 2017
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 (E) 66.95
Year INR equivalent of one USD
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 (Expected) 67.22
Exchange rates (Fiscal Year)
For updated information, please visit www.ibef.org
EXCHANGE RATES
Exchange rates (Calendar Year)
Source: Reserve bank of India,
Average for the year
54. 5454
IT & ITeS
MAY 2017
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