India Growth 4.0: IT Perspective
Why are countries choosing India over other countries for their IT initiatives? Where does India stand in the IT sector? Is IT the critical driver of growth in India? These are some of the immediate questions that need answering, and through our blog, we will help you find them.
More and more countries are expected to choose India for their IT projects since India can deliver them with the cost-effectiveness that they seek and the quality they expect. The Indian IT sector accounts for 8% of the total of India’s GDP. India’s technology growth is imminent with the rising export of software and other IT services from India.
According to the Software Technology Park of India, there will be a projected increase of software exports from its registered units by 7% annually from Rs.4.66 lac crore in FY2020 to Rs.5 lac crore in FY2021. This is due to the global digital transformation that is taking place due to the rise of emerging technologies such as Artificial Intelligence, Machine Learning, Augmented Reality, Virtual Reality, Data Analysis, and others. This new-age technology gives the economy a boost, with an annual growth rate of 1.3 percent by 2035.
Among the various services that India exports, IT is one of the highest, with a 55% market share of $200-250 billion. It is known for harnessing capabilities for both on-shoring and offshoring quality IT services. At the cusp of India’s technological growth stand major IT giants who have carried India’s capable workforce forward with their major IT projects that have gained global attention. So, it is no surprise why it is home to some of the biggest tech giants like TCS and Wipro having joint annual revenue of over $40 billion.
India’s IT sector has also come a long way from the 2000s providing the gamut of Information Technology services at a cost-effective rate to driving the digital transformation in companies both within the country and outside the country.
India has proven that it does not lag behind in terms of providing the economy the much-needed boost for development by helping small businesses with their innovative digital solutions. Through this, India’s technological growth for the IT sector will be around $100 billion by 2025
Some interesting figures
|Particulars||Spending (in Dollars)|
|Packaged Software Spending||5.3 bn|
|Infrastructure Software Spending||2.4 bn.|
|Analytic Applications Software market||31.6 m|
|Growth of business intelligence revenues||14.58%|
|IT services spending||15.84 bn|
India’s tech workforce
The IT sector has created opportunities by generating employment for tech graduates. According to a Statista report, India’s technology growth has put about 4 million tech personnel to employment. In addition to this, the government has joined hands with the private sector. There is a significant increase in the support from the government too in this regard. For example, the digital India movement has increased their reliance on IT companies to help them migrate their processes to digital. The government has spent over 1 lac crore on different projects under Digital India.
Why India is witnessing an IT boost
India technology growth is possible due to multiple factors playing a key role in driving the change forward and making digitization for companies possible. And with millions of tech workers supporting the digital transformation that is taking place, the IT sector is booming.
The following are some of the reasons why India is witnessing a boost in the IT sector
- India is a hub for talent in the age of digital skills
There are over 4 million workers in IT in India contributing to India’s technological growth. There is also a rise of technically adept IT workers that are self-sufficient when it comes to developing software and web solutions and sourcing digital talent to over 2000 global enterprises in their IT projects.
- It has largest number of internet users
Another factor that contributes to India’s technological growth is the surge in the number of Internet users. India’s population of internet users has increased by 8.2 percent which is 47 million with internet penetration of 45 % this means increasing demand for IT services.
- Rising number of tech startups
The ease of doing business and coupled with government’s support for tech startups has led to increase number of tech startups. Through this, India provides a catalytic environment for startups that drive the growth of IT sector with over 8000 budding tech startups.
- Has the largest market share in services sourcing industry globally
India has 55% of the global market share in services sourcing due to its richness in talent and qualitative IT services.
- Cost effectiveness
Indian IT enterprises have helped Global enterprises save over $500 billion when it comes to IT projects and services with over 50% cost difference between developed and developing countries.
- To conclude
India’s technological growth is rooted to multiple reasons. With the government’s support and the talent pool available in the country for IT, increasing number of companies and startups that are coming forward generating employment through their unique software solutions for small businesses of India. In the coming years, India’s technology growth will be exponential given the reasons above pulling more investment from globally renowned corporations giving India’s economy the much-needed push.
At VM consultants we help you find the right tech talent for your business. We suggest plausible solutions that can help you formulate a comprehensive Human Resources strategy that can help your business efficiently achieve its short term and long-term objectives.