SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 174

HIGH PRIORITY MARKET- IT
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to 37 more countries thereby taking the total count of
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The Government of India has launched the Digital
countries under the scheme to 150 countries.
Department of Electronics & Information Technology
India program to provide several government services to the people using IT and to integrate the
and M / s Canbank Venture Capital Fund Ltd plan to
government departments and the people of India. The
launch an Electronics Development Fund( EDF), which
adoption of key technologies across sectors spurred by
will be a ' Fund of Funds ' to invest in ' Daughter Funds '
the ' Digital India Initiative ' could help boost India ' s
which would provide risk capital to companies
Gross Domestic Product( GDP) by US $ 550 billion to
developing new technologies in the area of electronics,
US $ 1 trillion by 2025, as per research firm McKinsey.
nano-electronics and Information Technology( IT).
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India and the US have agreed to jointly explore
The Human Resource Development( HRD) Ministry has
opportunities for collaboration on implementing
entered into a partnership with private companies,
India ' s ambitious Rs 1.13 trillion( US $ 16.58 billion)
including Tata Motors Ltd, Tata Consultancy Services
‘ Digital India Initiative’. The two sides also agreed to
Ltd and real-estate firm Hubtown Ltd, to open three
hold the US-India Information and Communication
Indian Institutes of Information Technology( IIITs),
Technology( ICT) Working Group in India later this
through public-private partnership( PPP), at Nagpur,
year.
Ranchi and Pune.
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The Government of Telangana has begun construction
Government of India is planning to develop five
of a technology incubator in Hyderabad— dubbed T-
incubation centres for ' Internet of Things '( IoT) startdestination
Hub— to reposition the city as a technology
ups, as a part of Prime Minister Mr Narendra Modi ' s
. The state government is initially investing
Digital India and Startup India campaign, with at least
Rs 35 crore( US $ 5.14 million) to set up a 60,000 sq ft
two centres to be set up in rural areas to develop
space, labelled the largest start-up incubator in the
solutions for smart agriculture.
county, at the campus of International Institute of
According to research firm Gartner Inc, the Indian government is expected to increase its spending on information technology( IT) products and services by
Information Technology-Hyderabad( IIIT-H). Once completed, the project is proposed to be the world’ s biggest start-up incubator housing 1,000 start-ups.
5.2 per cent to US $ 6.88 billion in FY 2015-16.
Executive Summery
Strong growth opportunities
The IT-BPM sector in India expanded at a CAGR of 15 per cent over 2010 – 15, which is 3 – 4 times higher than the global IT-BPM growth, and is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020
Leading sourcing destination
India is the world’ s largest sourcing destination, accounting for approximately 55 per cent of the USD146 billion market. 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
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 fourth in India’ s total FDI share and accounts for approximately 37 per cent of total Private Equity and Venture investments in the country Source: NASSCOM, TechSci Research Notes: BPM – Business Process Management, USP – Unique Selling Proposition
Cash Cow
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In 2015, revenues of Indian IT-BPM market reached USD146.5 billion Indian IT companies have helped clients to save USD200 billion in the last five years 640 offshore development centres for 78 countries
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