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
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