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IT & ITeS

NOVEMBER

2011

For updated information, please visit www.ibef.org

1

IT & ITeS

NOVEMBER

2011

Contents
 Advantage India  Market overview and trends  Growth drivers  Opportunities  Success story: Infosys  Useful information

For updated information, please visit www.ibef.org

2

IT & ITeS
Advantage India

NOVEMBER

2011

Growing demand


Global footprint


2020F
Market size: USD225 billion

Strong growth in export demand from new verticals Growing economy to propel rise in local demand

Indian IT firms have delivery centres across the world Industry well diversified across verticals like BFSI, telecom, retail





Advantage India
Competitive position


Policy support
• •

India has 60-70 per cent cost saving over source countries Already the leading destination for IT&ITeS, India’s market share is still rising

Tax holidays extended to IT sector SEZ scheme since 2005 to benefit IT companies with single window approval mechanism, tax benefits etc.



2011
Market size: USD76 billion


Huge talent pool

Source: Nasscom, Aranca Research Note: SEZ stands for Special Economic Zone BFSI stands for Banking, Financial Services and Insurance

For updated information, please visit www.ibef.org

ADVANTAGE INDIA

3

IT & ITeS

NOVEMBER

2011

Contents
 Advantage India  Market overview and trends  Growth drivers  Opportunities  Success story: Infosys  Useful information

For updated information, please visit www.ibef.org

4

IT & ITeS

NOVEMBER

2011

Evolution of the Indian IT sector
2005 onwards 2000-2005
• Indian firms become Multi National Companies with delivery centres across the globe • Indian firms make global acquisitions • IT sector employs over 2 million people directly and over 8 million indirectly

1995-2000

Pre - 1995

• By early 90s, US based companies begin to outsource work due to low cost and skilled talent pool of India

• IT industry starts to mature • Increased investment in R&D and infrastructure begins • India increasingly seen as a product development destination

• Number of Indian firms grow in size and start offering complex services like product management, go-to market strategies etc. • Western firms set up number of captives in India

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

5

IT & ITeS

NOVEMBER

2011

Segments of the Indian IT sector
• Market Size: USD46.0 billion during FY11

IT services

• Over 73 per cent of the revenue comes from the export

market
• BFSI has been the major sector in this segment • Market size: USD17.3 billion during FY11

Business process outsourcing (BPO)

• US accounts for over 60 per cent of the export market • Around 81 per cent of the revenue comes from the

export market IT&ITeS sector Engineering design and product development • Market size: USD12.9 billion during FY11 • Over 70 per cent of the revenue in the segment comes

from exports

• Market size USD11.8 billion during FY11

Hardware

• Over 80 per cent revenue comes from domestic market • Domestic market is seeing good growth as penetration

of personal computers is rising in India
Source: Nasscom, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

6

IT & ITeS

NOVEMBER

2011

Indian IT market size growing; TCS the market leader … (1/2) Market size of IT industry in India (USD billion)



Indian technology and BPO sector is estimated to have generated USD88.1 billion in revenue during FY1 at a 1 year-on-year growth rate of 20.1 per cent As a proportion of India’s GDP, the contribution of IT sector has risen from 1.2 per cent in FY98 to 6.4 per cent in FY1 1



59.0 40.9 31.7 47.5 50.1

Note: The revenue figures of Cognizant are for the year ending 2010 16.2 FY07 22.0 FY08 21.9 FY09 Domestic 23.0 FY10 Export 29.1 FY11E

Source:...
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