HIGH PRIORITY MARKET - IT
ADVANTAGE INDIA
2015
Industry value : USD146.5 billion
Growing demand
Ÿ Strong growth in demand for exports from new verticals
Ÿ Rapidly growing urban infrastructure has fostered several IT centres in the country
Ÿ Expanding economy to propel growth in local demand
2020F
Industry value : USD300 billion
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Global footprints
IT firms in India have delivery centres across the world ; as of 2015 , IT firms had a total of 640 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 and retail
Competitive advantage
Ÿ Cost savings of 60 – 70 per cent over source countries
Ÿ 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
Ÿ The Indian IT industry has saved clients USD200 Billion in the past five years
Policy support
Ÿ Tax holidays extended to the IT sector
Ÿ More liberal system for raising global capital , funding for seed capital & growth , and ease of doing business , etc . have been addressed
Ÿ USD0.17 billion have been allocated for raising global capital , start ups
Ÿ Income Tax cut on royalty fee on tech services to 10 per cent
Ÿ Cumulative FDI inflow in computer software & hardware is USD18,170.24 million from April 2000 to September 2015
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
EVOLUTION OF INDIA ' S IT SECTOR
2005-15
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Pre-1995
Ÿ By early 90s , USbased companies began to outsource work on low-cost and skilled talent pool in India
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1995-2000
IT industry started to mature
Increased investment in R & D and infrastructure started
India increasingly seen as a product development destination
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2000 – 05
The number of firms in India grew in size and started offering complex services such as product management and goto market strategies
Western firms set up a number of captives in India
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Firms in India became multinational companies with delivery centres across the globe ( 640 centres in > 78 countries , as of 2015 )
Indian IT-BPM revenue is USD146.5 billion in FY15
The IT sector is expected to employ about 3.5 million people directly and around 10 million indirectly , as of FY15
India ’ s IT sector is at an inflection point , moving from enterprise servicing to enterprise solutions
In FY14 , the launch of 10,000 start ups programmes has already touched over 25,000 entrepreneurs
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