Market size of Information Technology Sector
Due to the immense need of cloud service and digital transformation, India’s IT sector is expected to gain a significant share in the global market and the country's investment is expected to hit US$ 5 billion annually by 2025.
Market size of IT industry in India (US$ billion)
The IT-BPM services revenue reached US$ 194 billion in FY21.
The IT industry added 4.45 lakh new employees in FY22, bringing
the total employment in the sector to 50 lakh employees.
In November 2021, Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, lauded the Indian IT sector for excelling its competitive strength with zero government interference. He further added that service exports from India had the potential to reach US$ 1 trillion by 2030.
Spending on information technology in India is expected to reach US$ 144 billion in 2023.
The cloud market in India is expected to grow three-fold to US$ 7.1
billion by 2022 with the help of growing adoption of big data, analytics, artificial intelligence and Internet of Things (IoT), according to Cloud Next Wave of Growth in India report.
Opportunities in various segments
- All
- New vertical
- New geographies
- Legacy modernization
New vertical
Non-linear growth due to platforms, products and automation
Emerging verticals (retail, healthcare, utilities) are driving growth.
New geographies
IBRIC nations, continental Europe, Canada and Japan have IT spending of approximately US$ 380-420 billion. Adoption of technology and outsourcing is expected to make Asia the second largest IT market by 2023.
Legacy modernization
As per TCS Survey Results (February 2021), more than 70% CXOs of global companies consider mainframe or legacy modernisation a strategic business priority for the next three years (FY21-23).
The rollout of fifth generation (5G) wireless technology by telecommunication companies is
expected to bring at least US$ 10 billion global business to Indian IT firms by 2019-25.
Why We Choose
Talent pool
- NASSCOM has estimated that the digital talent pool in India will cross 1.17 million in FY21, increase of 32% YoY.
- According to a report published by Microsoft, consultancy firm Bain & Co, and industry body Internet and Mobile Association of India (IAMAI), India produces 16% of the entire world’s AI talent pool – the third highest in the world.
Combat Cyber-security
- India’s Ministry of Home Affairs and the National Critical Information Infrastructure Protection Centre are working on a new national strategy to strengthen the country’s cybersecurity amid allegations that Chinese intrusions may have affected operations at a key stock exchange and supply of electricity in Mumbai.
Policy Support
- More liberal system for raising capital, seed money and ease of doing business.
- The Government of India announced plans to launch a national programme on AI and setting up of a National AI portal.
- In Union Budget 2022-23, the allocation for IT and telecom sector stood at Rs. 88,567.57 crore (US$ 11.58 billion).
Infrastructure
- Infrastructure software revenue in India was forecasterd to reach US$ 4.6 billion in 2021, an increase of 12% YoY, driven by rising demand for security-as-as service offerings, and detection and response capabilities.
Public cloud Market
- Adoption in India is projected to grow by 30% YoY to reach US$ 7.3 billion by 2022, driven by rising demand from companies for IT modernization