Posted in Operations & IT Articles, Total Reads: 872
, Published on 14 December 2015
When it comes to sourcing India is the world’s largest sourcing destination for the information Technology (IT) industry, accounting for approximately 52% of the US market according to IBEF. IT or IT enabled services sector is the biggest recruiter of India employing nearly more than 35 lakh employees from India. It has not only changed the global platform but also improved the economic growth by boosting the higher education sector especially in engineering and computer science. India itself has huge potential market and opportunity from an IT and BPM point of view. India has to leverage on that in the upcoming years. India has immense advantage, developments and competency in the IT sector attracting Foreign Direct Investment in huge number but as our Prime Minister said, “FDI should be First Develop India rather than Foreign Direct Investment”.
McKinsey India says India is in the midst of a massive wave of urbanization. In addition to this, Indian government is working towards improving the infrastructure as it shows that it might be one of the obstacle to stand in way of Make in India. India’s IT industry did not receive enough attention with respect to global IT, perhaps due to the fact that Indian IT as a field of study is still relatively inexperienced. However to overcome that and to be successful in the IT-BPM sector it is useful to understand the importance and build the development of IT in India as IT sector in developing countries and increase more research in the evolution of technology in developing countries.
With respect to Indian exports, IT makes up the single largest contributor in services sector. Based on the recent NASSCOM report, the revenue of IT industry grew by 10-12% with majority of it coming from the exports. IT stands out to be the next largest sector in exports wise in the Indian Economy after the other sectors like Chemicals, Textiles and Miscellaneous where 7% of the global market are from India’s IT industry. IT sector constitutes of 8.1% of the country’s GDP. In the past five years the IT Indian industry has saved USD 200 Billion clients in the past five years. Though there are many good reasons to boost up this sector in India, it depends on the state, which we are looking at. Certain states infrastructure are growing and forcing the IT centres being set up in such states. So this has to be considered because Make in India is a central Government Initiative.
These are the four fundamental growth pillars of Indian IT industry, where India being the world attractive market which is improving the economic growth. It is the leader in the global market which provides the services at a relatively less cost compare to U.S but it is behind in the domestic market. India is a hub for digital skills, which requires skill set development and focused trainings on digital solutions. Though India has excellence in business delivery with diversified talent and strong network, lack of infrastructure, effective collaboration and partnerships restricting the sector to succeed.
Considering all these GOI selected IT-BPM as one of the focus sectors in the Make in India campaign, Industrial experts believe that IT-BPM to continue to thrive. It has another positive factor that the career opportunities for employees are more from this sector and from other sectors too related to IT. They also think that the emerging opportunities are in services related to customer, product testing, product development, sales and marketing areas where India has the capability and skills to grow in the sector and add further value to the economy.
Certain industries like healthcare, retail, utilities and e-commerce verticals are emerging and growing with an excellent rate, which leads to the requirement of cheap and hassle free IT service. In addition to that there are few sectors like data analytics, cloud-based service and knowledge management that are growing rapidly which attract investment opportunities with respect to IT-BPM.
Government recognized the need of the improvement of IT services domestically and included IT among the sectors in Make in India, which not only helps the urban to develop but makes the rural areas to get penetrated related to employment and other related services. IT services gives tremendous opportunities not just for graduates who are engineers but also for everyone where the list is endless.
Present trends shows that India is already established well in digital economy where 75% of the population is mobile enabled and rapid increase in the Internet users overtaking the US. IT services and software products are the next fast growing segments after e-commerce segment, so there is a large scope for growth, which requires a push in the direction from the government to compete effectively in the globalized world.
India is turning towards Digital consistently innovating in products, processes and business models that can deliver enhanced value to the clients to remain an excellent business centre for the IT-BPM industry. If it improves with the help of the Make in India initiative India can remain in the leadership position in the global market and provides highest volume of employment and career growth opportunities in India.
Few measures that has to be taken to make the initiative encouraging for the industry and investors are:
1. Improve the infrastructure, employment reforms
2. Red tape clearances for green has to be reduced
3. Strive towards skill building and efficient workforce
4. Investments in Research and Development
The future of the IT industry will be based on the economic forces and adoption of new technologies. IT industry should invest in developing skills and research on technology for adoption of new technologies, set up in semi developing areas, and improve the infrastructure with the help of government to impart quality and produce low cost services. With the rapidly changing technologies, and changing consumer preferences and competition from efficient channels, companies has to be flexible to transform internally to meet the sudden changes and challenges that come across in the digital world.
This article has been authored by Chaitanya Deepak Beera from IIM Shillong
•Strategic Review on IT-BPM
If you are interested in writing articles for us, Submit Here