Indian Information technology is passing through the massive challenges like slow revenue, restrictions imposed on the availability for conventional deployment of Indian engineers at the client’s site, and the rapid changes in the world IT market. Are these challenges signs of an upcoming crisis? No, these issues do not indicate a crisis; rather these challenges are compelling Indian IT companies to change their business approach. Due to the automation and technological transformation, multiple layers of the middle management are getting superfluous. Before delving into the detail, let’s have a quick look at the Indian global sourcing market, Indian IT market size, and recent developments.
Indian Global Sourcing Market
Indian Global Market keeps growing at a higher pace in comparison to the IT-BPM industry. In the year 2016-2017, the global IT & ITeS market has reached US$1.2 trillion while the global sourcing market has managed an increase of 1.7 times to touch the figure of US$173-178 billion. Indian IT industry takes pride in announcing that the country has acquired the honor of being world’s top sourcing destination in 2016-2017 with 55% share in the global market. Our IT market has set up more than 1,000 global delivery centers in 200 cities worldwide. Additionally, the industry has been playing the most important role in transforming Indian economy and altering the global perception of India and its economy. India has successfully managed to be the mainstay of its USP (Unique Selling Proposition) in the world sourcing market. India has been one of the most favorite destinations of the reputed global IT firms for developing their innovation centers.
Indian IT industry has also availed ample scopes in the Indian education sectors like engineering and computer science. Cloud computing, rapid digital transformation, data analytics, and the Internet of Things provide the industry with immense opportunities. As per the survey report by National Association of Software and Services (Nasscom), Indian IT industry revenue has touched the magical figure of $154 billion in FY 2017 while the industry gained only $143 billion in FY 2016. It indicates a growth of 8% in the IT industry which has been occupied half of the country’s service export and almost 7.7% of GDP.
Bloomberg Intelligence Analysts consider the digital products as the sign of growth in the IT industry. Companies like TCS and Wipro have managed 18-22% share of digital while IBM and Accenture are enjoying 42-45% share. This rise strengthens the possibility of a brighter future of Indian IT industry in the world market.
Indian IT Market Size
As per the industry pundits, Indian Internet Industry is going to double to reach US$250 billion by the end of the year 2020. It is likely to grow by 7.5% of Gross Domestic Product (GDP). Due to the fastest adoption of digital technology, India will have almost 730 million Internet users by 2020, according to the report by NASSCOM. Indian It exports are expected to grow by 7-8% in 2017-2018 to US$ 126 billion. Apart from this, the industry is likely to add 130,000-150,000 new vacancies during this phase. Indian IT firms are expecting Indian digital economy to reach US$ 4 trillion by the end of the year 2022.
Recent Developments in Indian IT Market
Let’s have a quick glimpse of the recent developments in Indian IT industry:
- As per the latest survey report of Korn Ferry Digital Sustainability Index, India gained the ninth position out of fourteen countries
- The flex staffing market in Indian IT market acquired US$ 5.3 billion in 2016-17 and is expected to grow almost 14-16% by the end of 2021
- Private Equity (PE) or Venture Capital (VC) investment in IT and ITeS sector in India reached US$7.6 billion in 2017
- Export of software services by India has been increased by 10.3% year-on-year to touch US$ 97.1 billion in FY 2016-17, as per the ‘Survey on Computer Software & Information Technology Enabled Services Exports: 2016-17’ by Reserve Bank of India
Secrets to Unlock Success in Current Indian IT Market
To get success in Indian IT industry, an entrepreneur needs a proper strategic plan, consistency in following the plan, due diligence, patience, and of course, commitment. This industry demands multiple marketing efforts that can be effective in addressing regional differences including language, culture, region, economic development, and infrastructure. A careful and wise analysis of consumers’ trends and preferences, existing and new sales platforms, changes in the distribution system and marketing theories.
A Final Takeaway
Over the years, India has proved its capabilities in offering both on-shore and off-shore services to the global clients. In this way, Indian IT industry has become a powerhouse and resources of new opportunities. Digitalization and other government initiatives are working as a catalyst in progressing the overall growth and development of Indian IT industry. In order to make the future even brighter, the entrepreneur should keep up with the global market.
About The Author
Rajesh Shethia and is the managing director of Rajesh Shethia Consultants Pvt. Ltd. He brings on board his 17 years of experience working in multiple industries for business development and marketing. Before forming this company he successfully operated as Associate Vice President and Senior Vice President in a number of companies valued as market stalwarts. With the objective of delivering quality and result-oriented talent recruitment services for corporates, he started the Rajesh Shethia Consultants Pvt. Ltd. in the year 2014.
