India is the world ' s largest sourcing destination for the |
The IT industry has also created significant demand in the |
information technology( IT) industry, accounting for |
Indian education sector, especially for engineering and |
approximately 67 per cent of the US $ 124-130 billion |
computer science. The Indian IT and ITeS industry is |
market. The industry employs about 10 million workforces. |
divided into four major segments – IT services, Business |
More importantly, the industry has led the economic |
Process Management( BPM), software products and |
transformation of the country and altered the perception of |
engineering services, and hardware. |
India in the global economy. India ' s cost competitiveness |
The IT-BPM sector which is currently valued at US $ 143 |
in providing IT services, which is approximately 3-4 times |
billion is expected to grow at a Compound Annual Growth |
cheaper than the US, continues to be the mainstay of its |
Rate( CAGR) of 8.3 per cent year-on-year to US $ 143 |
Unique Selling Proposition( USP) in the global sourcing |
billion for 2015-16. The sector is expected to contribute |
market. However, India is also gaining prominence in |
9.5 per cent of India’ s Gross Domestic Product( GDP) and |
terms of intellectual capital with several global IT firms |
more than 45 per cent in total services export in 2015-16. |
setting up their innovation centres in India. | |
The Indian IT sector is expected to grow at a rate of 12-14 |
Association of India( IAMAI). India’ s internet user base |
per cent for FY2016 in constant currency terms. The sector |
reached over 350 million by June 2015, the third largest in |
is also expected triple its current annual revenue to reach |
the world, while the number of social media users grew to |
US $ 350 billion by FY 2025, as per National Association of |
143 million by April 2015 and smartphones grew to 160 |
Software and Services Companies( NASSCOM). |
million. |
India, the fourth largest base for new businesses in the |
Public cloud services revenue in India is expected to reach |
world and home to over 3,100 tech start-ups, is set to |
US $ 838 million in 2015, growing by 33 per cent year-onincrease |
its base to 11,500 tech start-ups by 2020, as per |
year( y-o-y), as per a report by Gartner Inc. In yet another |
a report by NASSCOM and Zinnov Management |
Gartner report, the public cloud market alone in the |
Consulting Pvt Ltd. |
country was estimated to treble to US $ 1.9 billion by 2018 |
India’ s internet economy is expected to touch Rs 10 trillion |
from US $ 638 million in 2014. Increased penetration of |
( US $ 146.72 billion) by 2018, accounting for 5 per cent of |
internet( including in rural areas) and rapid emergence of |
the country’ s GDP, according to a report by the Boston |
e-commerce are the main drivers for continued growth of |
Consulting Group( BCG) and Internet and Mobile |
data centre co-location and hosting market in India. |
Indian IT ' s core competencies and strengths have |
times the investment made last year. VC funding to the IT |
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attracted significant investments from major countries. The |
& ITes sector amounted to 55 per cent of total VC funding |
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computer software and hardware sector in India attracted |
made this year. |
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cumulative Foreign Direct Investment( FDI) inflows worth |
Most large technology companies looking to expand have |
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US $ 20.42 billion between April 2000 and December 2015, |
so far focused primarily on bigger enterprises, but a report |
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according to data released by the Department of Industrial |
from market research firm Zinnov highlighted that the |
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Policy and Promotion( DIPP). |
small and medium businesses will present a lucrative |
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Indian start-ups are expected to receive funding worth |
opportunity worth US $ 11.6 billion in 2015, which is |
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US $ 5 billion by the end of 2015, a 125 per cent increase |
expected to grow to US $ 25.8 billion in 2020. Moreover, |
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in a year, according to a report by IT Industry association |
India has nearly 51 million such businesses of which 12 |
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NASSCOM. |
million have a high degree of technology influence and are |
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The Private Equity( PE) deals increased the number of |
looking to adopt newer IT products, as per the report. |
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Mergers and Acquisitions( M & A) especially in the e- |
Some of the major developments in the Indian IT and ITeS |
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commerce space in 2014. The IT space, including e- |
sector are as follows: |
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commerce, witnessed 240 deals worth US $ 3.8 billion in |
Ø |
PurpleTalk Inc, a US based mobile solutions company, |
2014, as per data from Dealogic. |
has invested US $ 1 million in Nukkad Shops, a |
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India also saw a ten-fold increase in the venture funding |
Hyderabad based uber-local commerce platform that |
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that went into internet companies in 2014 as compared to |
helps neighbourhood retail stores take their |
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2013. More than 800 internet start-ups got funding in |
businesses online through a mobile app. |
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2014 as compared to 200 in 2012, said Rajan Anandan, |
Ø |
KartRocket, a Delhi based e-commerce enabler has |
Managing Director, Google India Pvt Ltd and Chairman, |
completed its US $ 8 million funding round by raising |
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IAMA. |
US $ 2 million from a Japanese investor, which will be |
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About 554 start-ups received funding this year compared |
used to enhance Kraftly, a mobile-first online-toto |
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342 during last year. Seed and venture capital funds |
offline marketplace targeting small sellers, individuals |
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made investments worth US $ 3.4 billion this year, three |
and home-based entrepreneurs in India in product |
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