SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 176

HIGH PRIORITY MARKET - IT
SEGMENTS OF INDIA ’ S IT SECTOR
IT & ITeS sector
IT services
Business Process Management ( BPM )
Software products and engineering services
Hardware
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Market Size : USD68 billion during FY15
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Market size : USD27 billion during FY15
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Market size : USD24 billion during FY15
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Market size : USD13.5 billion during FY15
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Over 80.88 per cent of revenue comes from the export market
BFSI continues to be the major vertical of the IT sector
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Around 85.19 per cent of revenue comes from the export market
Largest segment with 3.5 million jobs
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Over 83.33 per cent of revenue comes from exports
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The domestic market accounts for a significant share
The domestic market is experiencing growth as the penetration of personal computers is rising in India
INDIA ’ S IT MARKET SIZE GROWING ; TCS THE MARKET LEADER
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India ’ s technology and BPM sector ( including hardware ) has generated revenues of USD146.5 billion during FY15 compared to USD118 billion in FY14 , implying a growth rate of 23.72 per cent
The contribution of the IT sector to India ’ s GDP rose to approximately 9.5 per cent in FY15 from 1.2 per cent in FY98
TCS is the market leader , accounting for about 10.1 per cent of India ’ s total IT & ITeS sector revenue
The top six firms contribute around 36 per cent to the total industry revenue , indicating the market is fairly competitive
50
Market size of IT industry in India ( USD billion )
59 69
76
24 29 32 32 32 48 55.57
FY10
FY11
FY12
FY13
FY14
FY15
FY16E
Domestic
Export
Source : Nasscom , TechSci Research
Note : E - Estimates
86
98.5
110-112
IT AND BPM ACCOUNT FOR 79.7 PER CENT OF INDIA ' S IT & ITES EXPORTS
Ø Total exports from the IT-BPM sector ( including hardware ) were estimated to have been USD98.5 billion during FY15 ; exports rose at a CAGR of 13 per cent during FY08 – 15 despite weak global economic growth scenario
Ø Export of IT services has been the major contributor , accounting for 56.35 per cent of total IT exports ( including hardware ) during FY15
Ø BPM accounted for 23.35 per cent of total IT exports during FY15
Growth in export revenue ( USD billion ) Sector-wise breakup of export revenue FY15
8.8 9.9
25.8
10 11.7
25.8
11.4 14.1
33.5
13.0 15.9
39.9
14.1 17.8
43.9
14.0
20
52
20
23
55.5
IT services
BPM
Software Products and Engg . Services
FY10 IT Service
FY11 BPM
FY12
FY13 FY14 FY15 Software Products and Engg . Services
FY16E
Source : Nasscom , Make in India , TechSci Research
Spotlight on Indian Electronics 2016 | 176