HIGH PRIORITY MARKET - IT
EXPANSION OF FOCUS AREA TO AID FUTURE GROWTH
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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 |
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Source : Nasscom , TechSci Research Note : Small and Medium Business |
Road Ahead |
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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 .
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