HIGH PRIORITY MARKET- IT
TECHNOLOGY – A KEY INFLUENCER FOR DOMESTIC IT SERVICES
Ü Introduction of large e-Governance projects to provide Domestic revenue from IT and BPM( USD billion) better services through IT and focus on the formation of the cyber policy led to higher demand for IT and hardware from the government
o The Central Government and State / UT Government allocated 0.9 – 1.2 per cent and 2.8 – 3 per cent, respectively, of total budget for IT spend under the 12th Five Year Plan
Ü Strong consumer demand for IT service and products: o Advent of smartphones, tablets and iPads
o Industry leaders are stressing the need for promoting support start-ups
o Rising computer literate population o Enhanced internet and mobile penetration
o Growing disposable income strengthening consumer purchasing power
o Emerging verticals( retail, healthcare, utilities) are driving growth above 14 per cent
Domestic revenue from IT and BPM( USD billion)
48
55-57
100
FY15 FY16E FY20F
Source: Nasscom, TechSci Research Notes: UT- Union Territory, E: Estimated F- Forecasts
EXPORTS TO REMAIN ROBUST AS GLOBAL IT INDUSTRY MAINTAINS GROWTH
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In 2015 the revenue from exports of IT and BPM sector Export revenue from IT and BPM( USD billion) was USD98 billion. Global IT- BPM spending has grown 4.6 per cent over 2013 to nearly USD2.3 trillion
India’ s IT industry amounts to 4.26 per cent of the global market, largely due to exports as of 2015. In the year 2015 India comprised of around 500 BPM players generating a revenue of USD23 billion, which is expected to rise and reach 50 billion in 2020
Emergence of SMAC would provide USD1 trillion market by 2020
Emerging economies are likely to be a major contributor to IT spend growth
o IT spend in emerging economies to grow 3-4 times faster than advanced economies
o The BRIC IT market is estimated at USD380 – 420 billion by 2020
Stable tax regime, reducing litigation related to tax and providing conducive environment for start-ups will improve the business environment
Export revenue from IT and BPM( USD billion)
76.0
98.5
110-112
FY13 FY15 FY16E
Core and non core segment’ s growth prospects
Core segments
22 35 11 15 1.2 2 7.6 13 3. 2 5. 5 3.1 5. 5
CADM |
ER & D |
IT consulting |
ISsourcing |
|
|
|
|
FY13E
Emerging segments
FY16F
Knowledge services
Software testing
Source: Nasscom, TechSci Research, Budget 2015-16 Notes: UT- Union Territory, E- Estimated
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