OVERVIEW OF THE IT SECTOR

Statistics, news & updates: everything you need to know about the IT-Industry in India

IT Industry India
  • Summary
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

With over 3.7 million direct jobs the IT sector is the largest private sector employer in India. There are 16,000 IT firms in India and with an increasing number of start-ups popping up, the Indian market offers cost-effectiveness, high quality, great reliability, quick deliveries and the use of state-of-the-art technologies in the IT Industry. India already is a preferred IT destination for many companies and various international organizations have set up offices in India. This has led to a great increase in Foreign Direct Investments to India. Between 2000 and 2016, the IT sector ranked 4th in total FDI inflow in the country.

With approximately 67% of the global market, India is the world’s largest sourcing destination for the IT Industry. More importantly, the industry has led the economic transformation of the country and has helped India to make its mark on the global economy map.

Map- Industry Clusters

Growth Drivers

  • Cumulative FDI investments into Computer Software & Hardware from April 2000 to December 2016 was $22.83 billion
  • India ranks among the top five countries in terms of digitalisation maturity
  • Rapidly growing urban infrastructure has brought up several IT centers in the country
  • India’s cost competitiveness in providing IT services is approximately 3-4 times cheaper than the US market
  • New business models, technologies and addition of new markets is pushing growth

Key Players in India

International

  • Cognizant, IBM, Google, Microsoft, Accenture, Dell, Apple Inc., SAP, Oracle Corporation, Capgemini

National

  • Infosys, Wipro, TCS, Tech Mahindra, HCL Technologies, Larsen & Toubro Infotech

Market Stats

  • India’s internet economy is expected to touch $250 billion by 2020, accounting for 7.5% of the country’s GDP
  • Indian IT & BPM industry is expected to grow at a CAGR of 9.1% to $300 billion by 2020
  • The IT-BPM sector in India expanded at a CAGR of 13.7% over 2010–16, which is 3–4 times higher than the global IT-BPM growth
  • India’s IT industry amounts to 12.3%  of the global market, largely due to exports
  • Exports from the IT services stood at $61 billion in FY 15-16