HIGH PRIORITY MARKET - IT
WITH OVER 62 PER CENT SHARE , US IS MAJOR IMPORTER OF IT SERVICES
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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 FY15
Non US-UK countries accounted for just 21.0 per cent of total Indian IT-BPM exports during FY15
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 ) ( FY15 )
Distribution of export revenue across geographies ( FY15 )
61
42
52
US
UK
Europe ( Excl . UK )
12 |
15 17 |
8 10 11 |
5 |
7 8 |
2 2 2 |
APAC
RoW
|
US |
UK |
Europe ( Excl . UK ) |
APAC |
RoW |
|
|
2012 2014 2015 |
|
|
Source : Nasscom , TechSci Research , Department of Electronics and IT Annual Report Note : ROW is Rest Of the World , APAC is Asia Pacific
NOTABLE TRENDS IN INDIA ' S IT & ITES SECTOR
Global delivery model
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Indian software product industry is expected to reach the mark of USD100 billion by 2025 . The number of global delivery centres of IT firms in India reached 580 , spreading out across 75 countries , as of 2014
New business models , technologies and 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
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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
Ÿ In 2014 , India was the most preferred location for Engineering offshoring , as per a customer poll Companies are now offshoring complete product responsibility
Ÿ The sector includes 640 Offshore Development Centres ( ODCs ) of 78 countries
Ÿ Most lucrative sector for investments
Ÿ Increased focus on R & D by IT firms in India resulted in rising number of patents filed by them . In 2015 Indian IT-BPM sector is expected to grow 13 per cent since last year and reach USD146 billion
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