EXCHANGE OF INFORMATION TECHNOLOGY BETWEEN INDIA AND OTHER COUNTRIES

Published on Sep 16, 2018
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Hardeep Tomar

EXCHANGE OF INFORMATION TECHNOLOGY BETWEEN INDIA AND OTHER COUNTRIES

IT AND ITES SECTOR

INTRODUCTION

The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery center in about 80 countries across the world.
More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, cost savings of 60–70 per cent over source countries, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation center in India.
India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country.


MARKET SIZE

The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by fast adoption of digital technology, according to a report by National Association of Software and Services Companies (NASSCOM).
Indian IT exports increased to US$ 126 billion in FY18 while domestic revenues (including hardware) advanced to US$ 41 billion.
Indian IT and BPM industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.
Total spending on IT by banking and security firms in India is expected to grow 8.6 per cent year-on-year to US$ 7.8 billion by 2017!!.
India’s Personal Computer (PC) shipment advanced 11.4 per cent year-on-year to 9.56 million units in 2017 on the back of rise in the quantum of large projects.
Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.



INVESTMENTS/ DEVELOPMENT

Indian IT's core competencies and strengths have attracted significant investments from major countries. The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows US$ 29.825 billion from April 2000 to December 2017, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain, artificial intelligence to clients using innovation hubs, research and development centers, in order to create differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:
• Nasscom has launched an online platform which is aimed at up-skilling over 2 million technology professionals and skilling another 2 million potential employees and students.
• Revenue growth in the BFSI vertical reached nearly 9 per cent y-o-y in the fourth quarter of 2017-18.
• As of March 2018, there were over 1,140 GICs operating out of India.
• Private Equity (PE)/Venture Capital (VC) investments in India's IT & ITeS sector reached US$ 7.6 billion during April-December 2017.

GOVERNMENT INITIATIVES

Some of the major initiatives taken by the government to promote IT and ITeS sector in India are as follows:
• As a part of Union Budget 2018-19, NITI Aayog is going to set up a national level programme that will enable efforts in AI* and will help in leveraging AI* technology for development works in the country.
• The Government of India is going to explore new opportunities in various sectors such as providing BPO service from home, digital healthcare and agriculture to achieve the target of making India a US$ 1 trillion digital economy. XE Currency Converter - Live Rate, XE.com - Official Sit, NUS WebMai, Microsoft Exchange Server - Official Sit, Currency Converter | Foreign Exchange Rates | OANDA, Exchange Rates - X-Rate, Exchange - definition of exchange by The Free Dictionar, Exchange | Define Exchange at Dictionary.co,


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