Indian ICT industry
India is the world’s largest sourcing destination, accounting for approximately 55 per cent of the USD 146 billion market. The country’s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market.
India’s highly qualified talent pool of technical graduates is one of the largest in the world, facilitating its emergence as a preferred destination for outsourcing, computer science/information technology accounts for the biggest chunk of India’ fresh engineering talent pool, with more than 98 per cent of the colleges offering this stream. The sector ranks fourth in India’s total FDI share and accounts for approximately 37 per cent of total Private Equity and Venture investments in the country.
Indian IT companies, with 640 offshore development centres for 78 countries, have helped clients to save USD200 billion in the last five years. Revenues for the industry in 2015 are expected to be approximately USD 146 billion. The IT-BPM sector in India expanded at a CAGR of 15 per cent over 2010–15, which is 3–4 times higher than the global IT-BPM growth, and is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020
US has traditionally been the biggest importer of Indian IT exports; over 60 per cent of Indian IT-BPM exports were absorbed by the US during 2014.Being the low cost exporter of IT services, India is going to attract more markets in other regions.
Highlights of Indian ICT industry
- TCS is the market leader in the sector, accounting for about 10.1 per cent of India’s total IT & ITeS sector revenue. The top six firms contribute around 36 per cent to the total industry revenue, indicating the market is fairly competitive.
- India’s IT market is experiencing a significant shift from a few large-size deals to multiple small-size ones.
- The contribution of the sector to India’s GDP rose to approximately 9.5 per cent in 2015 from 1.2 per cent in 1998.
- The number of start-ups in technology is expected to reach 50,000, adding to around 2 per cent of GDP Delivery models are being altered, as the business is moving to capital expenditure based models from operational expenditure.