Software Engineer

Topics: Economic growth, International trade, Revenue Pages: 45 (3469 words) Published: April 15, 2014

The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13, 3-4 times higher than global IT-BPM spend

India is the world’s largest sourcing destination, accounting for approximately 52 per cent of the USD124–130 billion market. The country’s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market

Largest pool of ready to
hire talent

India’s highly qualified talent pool of technical graduates is one of the largest in the world, facilitating its emergence as a preferred destination for outsourcing

Most lucrative sector for

The sector ranks fourth in India’s total FDI share and accounts for approximately 37 per cent of total Private Equity and Venture investments in the country

Strong growth

Leading sourcing

Source: NASSCOM; Aranca Research
Note: BPM - Business Process Management, USP - Unique Selling Proposition

Growing demand
Growing demand


Global footprints

Strong growth in demand for
exports from new verticals

IT firms in India have delivery
centres across the world; as of
2012, IT firms had a total of
580 centres in 75 countries



India’s IT & ITes industry is
well diversified across verticals
such as BFSI, telecom, retail

Expanding economy to propel
growth in local demand


Competitive advantage

India has cost savings of 60– 70
per cent over source countries
India remains a preferred
destination for IT & ITeS in the
world. With 52 per cent market
share, India continues to be a
leader in the global sourcing
The country has a huge talent

Policy support

The engineering sector is delicensed;
Tax per cent FDI is allowed the IT
100 holidays extended to in the


Due scheme since 2005 to benefit
SEZ to policy support, there was
cumulative FDI of USD14.0 window
IT companies with single billion into
the sector over April 2000
approval mechanism, tax– February
2012, making
benefits,etc up 8.6 per cent of total
FDI into the country in that period

Source: Nasscom, Aranca Research
Note: SEZ stands for Special Economic Zone, BFSI stands for Banking, Financial Services and Insurance; E stands for Estimate, F stands for Forecast

2005 onwards



By early 90s,
began to
outsource work
on low-cost and
skilled talent
pool in India

IT industry started to
investment in R&D
and infrastructure
India increasingly
seen as a product

The number of firms
in India grew in size
and started offering
complex services
such as product
management and
go-to market
Western firms set
up a number of
captives in India

Firms in India became
multinational companies
with delivery centres
across the globe (580
centres in 75 countries,
as of 2012)
Firms in India make
global acquisitions
The IT sector is expected
to employ about 3.0
million people directly
and around 9.5 million
indirectly, as of FY13
India’s IT sector is at an
inflection point, moving
from enterprise servicing
to enterprise solutions

Market Size: USD56.3 billion during FY13

Over 78 per cent of revenue comes from the export market

BFSI continued as the major vertical of the IT sector

Business Process
Management (BPM)

Market size: USD20.9 billion during FY13

Around 85 per cent of revenue comes from the export market

Software products and
engineering services

Market size: USD17.9 billion during...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Architects and Transportation Engineers
  • Software engineering Research Paper
  • Essay Why Become a Engineer
  • Engineer: Project Management and Career Episode Essay
  • Essay on Final Exam 2011
  • Contribution of Engineers in Society Essay
  • Role of engineers in Nation Building Essay
  • Explain Why Do Engineers Need Ethics Essay

Become a StudyMode Member

Sign Up - It's Free