US$ 124-130 billion market i.e. 67% of the market share of US is sourced in india for information technology which employees approx 10 million people. This may lead india to economic transformation. Our cost effectiveness is one of the reasons as our workforce is 3 to 4 times cheaper than the US. India is also becoming the hub for various global it firms and they all are opening innovation centers in India.
Market Size:
The fourth largest base for new businesses in the world is India and more than 3100 new startups and will increase to approx 11,500 till 2020 as per Nasscom.
India’s internet economy is expecting to raise Rs. 10 trillion by 2018 accounting 5 percent of the India’s GDP as per the Boston Consulting Group (BCG) and Internet and Mobile Association of India (IAMAI). India’s internet users reached over 350 million by June 2015 i.e., Third largest among the planet. 143 million users grew in social media and 160 million smart phones grew.
Public cloud services revenue is expected to increase US$ 838 million in 2015, 33% growth.
Investments
The computer software and hardware industry in India attracted an FDI of US$ 17.575 billion between April 2000 and May 2015, according to the Department of Industrial Policy and Promotion (DIPP).
The mergers and acquisitions (M&A) especially in the e-commerce sector increased from 2014 till now. The venture funding for internet companies increases 10 fold from 2013 to 2014. In 2014 more than 800 internet startup companies got funding in India as compared to only 200 in 2012. New 554 startups get funding this year as compare to 342 last year. A report from market research firm Zinnov states that small and medium businesses have a lucrative opportunity worth US$ 11.6 billion in 2015.
Some of the major developments in Indian IT sector are as follows:
- According to International Data Corporation (IDC) India will soon catch up the global technology trends that interrupted enterprises, industry and the way consumers behave.
- Wipro has won a 400 million $ contract from Swiss engineering giant ABB, which is one of the largest deal for the technology company.
- Reliance is building a new data centre in India which is 650,000 square feet (sq ft) wide. It is his 10th data center.
- A global strategic design firm from Denmark – Designit will be acquired by Wipro in near future.
Government Initiatives
- The Govt. launches Digital India program in which there motto is to provide several govt. services at one end. Combining and integrating govt. departments and agencies under one digital roof.
- India and US join hands and agreed to explore the opportunities for collaboration on implementing India’s ambitious Rs 1.13 trillion (US$ 18.22 billion) ‘Digital India program.
- The National Web Portal for promotion of National Apprenticeship Scheme for graduates, diploma holders and 10+2 pass-outs vocational certificate holders was launched by Union Human Resource Development Minister Mrs Smriti Irani.
- Telangana gov t. has developing a technology incubator in Hydrabad and initially investing Rs 35 crore (US$ 5.3 million) to set up a 60,000 sq ft space.
Road Ahead
India is the most happening and one of the most demanding destination for IT companies around the world. India already proves his capabilities in delivering both On-shore and Off-shore opportunities for global clients. Social media, mobile technology, analytics and cloud (SMAC) are collectively expected to offer a US$ 1 trillion opportunity in India.