IT SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the IT Industry in India
Summary/Snapshot
- India’s IT-BPM industry accounts for 8% of the country’s GDP. With 3.9 million employees, the industry is the largest employer in the private sector.
- India has the world’s second-largest number of telephone connections. In the Global Innovation Index 2020, India is ranked 48th out of 50 countries.
- In India, more than 500 million people are projected to use cell phones, with three-quarters of them online. Indians are also among the world’s most prolific app downloaders.
- IT hardware output is predicted to reach 3 trillion rupees in four years, with domestic value addition rising from 5-10 per cent to 20-25 per cent in five years.
- The government established the National Research Foundation for R&D as part of the Union Budget 2019-20.
- India comes in third place among the world’s most inventive lower-middle-income economies.
- With about 24 per cent of overall FDI equity inflows in April 2021, Computer Software & Hardware has emerged as the top sector.
- The government allocated US$ 2 billion to the Ministry of Science and Technology in the Budget 2023-24.
- In 2020, the Indian data center industry is expected to receive about $396 million in investment. By 2025, per capita, data consumption is expected to reach 25GB per month.
Growth Drivers
Production-linked incentives for IT Hardware were approved in 2021 to stimulate local manufacturing.
In the IT and BPM sectors, India permits up to 100% Foreign Direct Investment (FDI) under the automatic method.
Consumer acceptance of technology and telecom, and targeted government measures, are driving increased adoption of information and communication technology.
The Bharat Net Project aims to integrate at least five Wi-Fi access sites in each of the country’s 250,000 villages.
Sub industries
- Information Technology
Opportunities
According to the Department of Science and Technology, at the BRICS S&T Steering Committee’s 12th meeting, all countries agreed to an STI-led BRICS Innovation Cooperation Action Plan (2021-24) suggested by India.
India is the world’s leading supplier of IT products, has the world’s third-largest pharmaceutical industry, and a rapidly expanding contract research sector.
Challenges
- Cyber security threats is one of the major challenge faced by the IT sector, in the last four years there have been more than a 50% increase in data breaches
- Other countries’ new data protection and privacy standards are blocking Indian enterprises from serving in those countries. The GDPR (General Data Protection Regulation) of the European Union, for example, went into force in May 2018. Because not all Indian IT firms can comply with GDPR and other data privacy regulations, many have had to stop serving EU clients.
- One of the most difficult difficulties facing the IT business is employee retention.
How we can help you:
– Product-Pricing analysis– Strategies for – product/service localization
– Market research to sell effectively
Key Investment Opportunities
- IT services, BPM, software product companies, and shared service centers are all being established.
- Knowledge services, data analytics, legal services, Business Process as a Service (BPaaS), and cloud-based services are fast-growing sectors within the BPM domain.
- IT Services and fast-growing industries within it, such as SMAC (Social, Mobile, Analytics, Cloud) products and services, IT consulting, and software testing.
- The fastest expanding sectors in engineering and R&D are telecom and semiconductors.
Recent Developments
- Significant developments in the nuclear energy sector are likely as India looks to expand its nuclear capacity. Moreover, nanotechnology is expected to transform India’s pharmaceutical industry. The agriculture sector is also likely to undergo a major revamp with the government investing heavily for a technology-driven green revolution.
- To accelerate digital innovation in India, NITI Aayog, Amazon Web Services and Intel have come together to develop a new experience studio to boost problem-solving and innovation between government stakeholders, start-ups, enterprises and industry experts. The new experience studio will use technologies such as artificial intelligence, machine learning, Internet of Things, augmented reality, virtual reality, blockchain and robotics to accelerate their use in the public sector.
Key Players in India
- Tata Consultancy Services
- Infosys Technologies Limited
- Wipro Technologies
- HCL Technologies
- Redington (India) Ltd
- Tech Mahindra
- L&T Infotech
- MphasiS Ltd
- Mindtree Ltd
- Oracle Financial Services Software Ltd (OFSSL)
- Microsoft
- HP
- IBM
- Accenture
- Oracle
- SAP
- Capgemini
- Cognizant
- Infosys
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