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 |
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|
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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