India is the world’s leading sourcing destination, accounting for approximately 55% of the US$181 billion global sourcing services market.
Market overview
India is the world’s leading sourcing destination, accounting for approximately 55% of the US$181 billion global sourcing services market. Indian IT companies have set up more than 1000 distribution centers globally in around 80 countries across the globe. The IT industry in India is expected to double by 2020, reaching US$250 billion, or 7.5% of the country’s gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, driven by the rapid adoption of digital technology, according to a report by NASSCOM.
India’s IT exports reached US$126 billion in fiscal year 2017-18, while domestic revenues (including hardware) reached US$41 billion.
India’s IT and BPM (Business Process Management) industry is expected to reach US$350 billion by 2025 and BPM is expected to account for US$50-55 billion of total revenue .
India is the highest outsourcing destination for IT companies across the globe. Having proven its capabilities in providing onshore and offshore services to global clients, emerging technologies now offer a whole new range of possibilities for leading IT companies in India. The sector’s export earnings are expected to increase by 7% to 9% year-on-year to reach US$135-137 billion in fiscal year 2018-19.
Investments & Developments
Indian IT skills and strengths have attracted significant investment from several major countries. India’s software and hardware sector, which attracted foreign direct investment (FDI) of US$29.825 billion from April 2000 to December 2017, according to data released by the Department of Industrial Policy and Promotion (DIPP) “.
Powerful Indian companies in this field such as Infosys, Wipro, TCS and Tech Mahindra are diversifying their offerings and introducing customers to innovative ideas in blockchain and artificial intelligence, using innovation centers, research centers and development to create differentiated offers.
Key developments in the Indian IT sector:
NASSCOM has launched an online platform aimed at improving the skills of more than 2 million technology professionals and training 2 million potential employees and students.
As of March 2018, over 1140 Global in-house Centers were operating in India.
Private equity / venture capital investment in the information sector in India reached US$ 7.6 billion in April-December 2017.
In March 2018, the Minister of Commerce and Industry, The country has helped us strategically and technologically, because it is a technologically advanced country. Technology and wealth will come to India and it will also create jobs. So I understand that growing ties with France will help our country tremendously.”
Indian IT vendors follow international best practices and have adopted several global quality tracking certification standards, including:
The Capability Maturity Model (CMM) which assesses the ability of business processes to implement a contracted software project
The series of International Standards Organization (ISO 9000) which applies to quality assurance in the design, development, production, installation and maintenance of software
Total Quality Management (TQM)
COPC (Customer Operations Performance Center) certification confirming the ability to deliver quality software development on time.
Lower labor costs, affordable real estate, and the establishment of Software Technology Parks (STPIs) and Special Economic Zones (SEZs) in India are attractive to IT companies.
Foreign companies engaged in providing back-end services (outsourcing) can effectively tap into the Indian market, at a competitive cost. Meanwhile, the country’s IT ecosystem will continue to grow, including in the education and training sectors, providing foreign newcomers with the edge they need in the global marketplace.
