SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 184

HIGH PRIORITY MARKET - IT

NEWER GEOGRAPHIES AND VERTICALS PROVIDE HUGE OPPORTUNITIES

New geographies

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BRIC nations , continental Europe , Canada and Japan have IT spending of approximately USD380 – 420 billion Adoption of technology and outsourcing is expected to make Asia the second largest IT market

New customer segments

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SMBs have IT spend of approximately USD230 – 250 billion , but contribute just 25 per cent to India ’ s IT revenue The emergence of new service offerings and business models would aid in tapping market profitably and efficiently

New verticals

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Government , healthcare , media and utilities together have IT spend of approximately USD190 billion , but account just 8 per cent of India ’ s IT revenue

Non-linear growth due to platforms , products and automation Emerging verticals ( retail , healthcare , utilities ) are driving growth

Source : All the figures are taken from International Data Corporation ( IDC ) and Nasscom and are FY10 estimates

Note : SMB - Small and Medium Businesses

EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH

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Traditional verticals , i . e . BFSI , telecommunication and manufacturing , continue to remain the largest in terms of IT adoption and are expected to grow at an average of 15 per cent

Implementation of cloud environment and mobility is the way forward for traditional verticals Emphasis on other emerging verticals ( e . g . education , healthcare and retail ) to aid growth in IT firms in India

Shift from IT adoption infrastructure , automation and digitisation to smart IT marks future trend of services in emerging verticals

Other untapped sectors like Education and utilities has a huge potential for IT & ITes to grow into

IT-BPM Exports Revenue ( USD Billion ) IT-BPM Exports Revenue ( USD Billion )

23.0 20.0

0.5 0.5

Source : Nasscom , TechSci Research Note : E – Estimated

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