HIGH PRIORITY MARKET- IT
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH
Ü
Ü
Ü
Emerging Growing technologies future growth technologies present an entire new gamut of opportunities for IT firms in India
o
SMAC provide USD1 trillion opportunity
Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per cent to around USD650 – 700 billion by 2020
Social media is the second most lucrative segment for IT firms, offering a USD250 billion market opportunity by 2020
60 %
50 %
40 %
30 %
IT-BPM Exports Revenue( USD Billion)
Big data / analytics *
Social Media
Cloud
20 %
Enterprise mobility
10 %
0 200 400 600 800
Source: Nasscom, TechSci Research Note: Size of bubble indicates market size, * CAGR and market size for
Big data / analytics is till 2015
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH
Ü Emerging geographies would drive the next growth phase for IT firms in India
Ü BRIC would provide USD380 – 420 billion opportunity by 2020
Ü Focus on building local credible presence, high degree of domain expertise at competitive costs and attaining operational excellence hold key to success in new geographies
Ü Emphasis on export of IT services to current importers of other products and services
Countries offering growth potential to IT firms Country IT spend India’ s penetration Key segments
Canada |
USD63 billion |
~ 1.5 per cent |
Enterprise applications, cyber security, healthcare IT |
Europe |
USD230 billion |
< 1.5 per cent |
IT sourcing, BPM, IS outsourcing, CAD |
Japan |
USD235 billion |
< 1 per cent |
CRM, ERP, Salesforce automation, SI |
Spain |
USD26 billion |
< 1.5 per cent |
IT sourcing, SI |
Mexico |
USD29 billion |
~ 4 per cent |
IT sourcing, BPM |
Brazil |
USD47 billion |
~ 2 per cent |
Low level application management, artificial intelligence, R & D |
China |
USD105 billion |
< 1 per cent |
Software outsourcing, R & D |
Australia |
USD48 billion |
~ 4 per cent |
Procurement outsourcing, infrastructure software & CAD |
|
|
|
Source: Nasscom, TechSci Research Note: Small and Medium Business |
Road Ahead |
|
|
|
India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Social, Mobility, Analytics and Cloud( SMAC) are collectively expected to offer a US $ 1 trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per cent to around US $ 650-700 billion by 2020. The social media is the second most lucrative segment for IT firms, offering a US $ 250 billion market opportunity by 2020. The Indian e-commerce segment is US $ 12 billion in size and is witnessing strong growth and thereby offers another attractive avenue for IT companies to develop products and services to cater to the high growth consumer segment.
Spotlight on Indian Electronics 2016 | 186