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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