HIGH PRIORITY MARKET- IT
Changing business dynamics
Ÿ India’ s IT market is experiencing a significant shift from a few large-size deals to multiple small-size ones
Ÿ The number of start-ups in technology is expected to reach 50,000, adding to around 2 per cent of GDP
Ÿ Delivery models are being altered, as the business is moving to capital expenditure( capex) based models from operational expenditure( opex), from a vendor’ s frame of reference
Large players gaining advantage
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Large players with a wide range of capabilities are gaining ground as they move from being simple maintenance providers to full service players, offering infrastructure, system integration and consulting services
Of the total revenue, about 80 per cent is contributed by 200 large and medium players
New technologies
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Disruptive technologies, such as cloud computing, social media and data analytics, are offering new avenues of growth across verticals for IT companies
The SMAC( social, mobility, analytics, cloud) market is expected to grow to USD225 billion by 2020
Growth in non-linear models
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India’ s IT sector is gradually moving from linear models( rising headcount to increase revenue) to non-linear ones
In line with this, IT companies in India are focusing on new models such as platform-based BPM services and creation of intellectual property
Consumerisation of IT
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Global outsourcing is being used to drive fundamental re-engineering of end-to-end processes • Increased emphasis on beyond cost benefits
IT firms in the current phase have moved up the value chain, providing innovation-led growth to clients from SLA satisfaction and RoI calculations
Emergence of Tier II cities
Ÿ Tier II and III cities are increasingly gaining traction among IT companies, aiming to establish business in India
Ÿ Cheap labour, affordable real estate, favourable government regulations, tax breaks and SEZ schemes facilitating their emergence as a new IT destination
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Giving rise to the domestic hub and spoke model, with Tier I cities acting as hubs and Tier II, III and IV as network of spokes
SMAC technologies, an inflection point for Indian IT
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Social, Mobility, Analytics and Cloud( SMAC), a paradigm shift in IT-BPM approaches experienced until now, is leading to digitisation of the entire business model
Rural Development
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The National Optical Fibre Network( NOFN) is being laid down in phases to connect all the 250,000 gram panchayats in the country
Spotlight on Indian Electronics 2016 | 178