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The sector of information technology is a blend of companies producing hardware, software or semiconductor equipment in addition to the companies providing services related to the internet. Factors like the global market and growth rate influence the IT industry to a great extent.
Overall, the global information and technology industry is on pace to reach $5 trillion in 2019.
The industry grew to US$ 181 billion in 2018-19. Moreover, exports from the industry increased to US$ 137 billion in FY19 while domestic revenues (including hardware) advanced to US$ 44 billion.
Furthermore, spending on Information Technology in India is expected to grow over 9 percent to reach US$ 87.1 billion in 2018.
Thus, revenue from digital segment will comprise 38 percent of the US$ 350 billion industry revenue by 2025.
Some of the major developments are:
The most lucrative destination for IT companies across the world, this country has proven its capabilities delivering both domestic and international services to clients across the globe. In FY19 export revenue will grow at 7-9% YoY reaching 135-137 billion. Moreover, the new emerging technologies provide mammoth new opportunities to the top firms in the country.
Finally, the industry will grow to US$ 350 billion by 2025 and BPM will account for US$ 50-55 billion out of the total revenue.
The below mentioned are the major categories and the percentage spends in each category globally:
India's IT industry can be divided into six subcategories:
The Indian IT sector will benefit significantly from the government's schemes like Digital India, Make in India, and Start-Up India.
Market Size
Overall, the global information and technology industry is on pace to reach $5 trillion in 2019.
The industry grew to US$ 181 billion in 2018-19. Moreover, exports from the industry increased to US$ 137 billion in FY19 while domestic revenues (including hardware) advanced to US$ 44 billion.
Furthermore, spending on Information Technology in India is expected to grow over 9 percent to reach US$ 87.1 billion in 2018.
Thus, revenue from digital segment will comprise 38 percent of the US$ 350 billion industry revenue by 2025.
Developments
Some of the major developments are:
- Firstly, Nasscom has launched an online platform which is aimed at up-training over 2 million technology professionals and training another 2 million potential employees and students.
- Secondly, revenue growth in the BFSI vertical stood at 6.80 percent y-o-y between July-September 2018.
- Thirdly, till March 2018, there were around 1,140 GICs operating out of India.
- Also, in the fourth quarter of 2018, PE investments in the sector stood at US$ 2,400 million.
- Finally, Venture Capital (VC) investments in this sector stand at US$ 53.0 million
Road Ahead
The most lucrative destination for IT companies across the world, this country has proven its capabilities delivering both domestic and international services to clients across the globe. In FY19 export revenue will grow at 7-9% YoY reaching 135-137 billion. Moreover, the new emerging technologies provide mammoth new opportunities to the top firms in the country.
Finally, the industry will grow to US$ 350 billion by 2025 and BPM will account for US$ 50-55 billion out of the total revenue.
Why IT, ITeS, and BPM in India?
- Growing Demand – Expanding economy to propel growth in local demand. There is powerful growth in demand for exports from new verticals.
- Global footprint – Indian IT firms have delivery centers across the world and are well diversified across verticals such as BFSI, telecom, and retail
- Competitive Advantage – IT and ITeS Sector in India has a low cost – advantage by being 5-6 times less expensive than the US
- Policy Support – Tax exemption of three years in a block of seven years to startups under ‘Startup India’.
Categories of the Information technology industry
The below mentioned are the major categories and the percentage spends in each category globally:
- Software – 11%
- Devices + Infrastructure – 22%
- IT +Business Services 21%
- Emerging Technology – 17%
- Telecom Services – 30
India's IT industry can be divided into six subcategories:
- Software Products
- IT services
- Engineering
- R&D services
- ITES/BPO (IT-enabled services/Business Process Outsourcing)
- Hardware
- E-commerce
The Indian IT sector will benefit significantly from the government's schemes like Digital India, Make in India, and Start-Up India.
Sources
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