2022-11-13-IBEF-2021年印度IT和BPM行业报告_34页_978kb

IT & BPM Industry Summary

Core Content

The Indian IT and Business Process Management (BPM) industry is a major contributor to the country's economy and continues to show strong growth potential. It plays a crucial role in employment, exports, and technology innovation, supported by a robust talent pool and favorable government policies.

Main Points

Economic Contribution

• The IT industry accounted for 8% of India's GDP in 2020.
• It is projected to contribute 10% of GDP by 2025.
• In FY20, the IT industry employed 4.3 million people.

Market Growth

• The IT & BPM industry's revenue is estimated at ~US$194 billion in FY21, up 2.3% YoY.
• By 2025, the market size is expected to grow to ~US$350 billion, with BPM contributing ~US$50-55 billion.
• IT spending in India is expected to reach ~US$144 billion in 2023.
• The cloud market in India is expected to grow to ~US$7.1 billion by 2022.

Export Growth

• Exports from the IT industry reached ~US$150 billion in FY21, with a CAGR of 8.05% during FY16-FY19.
• IT services account for ~54% of total IT exports, with BPM and ER&D each contributing ~23%.
• The US remains the largest importer of IT services, accounting for ~62% of IT & BPM exports in FY19.
• The Indian government has set an export target of US$400 billion for March 2022.

Talent and Workforce

• Digitally trained employees in India constitute ~12% of the workforce as of 2021.
• The digital talent pool is expected to reach ~1.17 million in FY21, up 32% YoY.
• The top 5 Indian IT companies plan to add ~96,000 employees in FY22.

Industry Structure

• The IT & BPM industry is dominated by large players (11 companies) contributing ~80% of total revenue.
• Medium players (120-150 companies) account for ~32-35% of total export revenue.
• The BFSI sector is a key vertical, with ~62% of IT major revenue coming from this sector.
• BPM sector employs >1.4 million people, and when combined with IT, the total workforce exceeds >4.5 million.

Key Industry Trends

Cloud and Digital Transformation

• The push towards cloud services is boosting hyper-scale data centre investments, with global investments expected to exceed ~US$200 billion annually by 2025.
• India is expected to gain a significant share in the global cloud market, with investments projected to reach ~US$5 billion annually by 2025.
• Major players like TCS, Wipro, and Infosys are investing heavily in cloud technologies, with TCS investing US$1 billion over three years and Wipro launching cloud services.

Strategic Alliances and Partnerships

• Companies are forming strategic alliances with global players to enhance their global delivery capabilities.
• TCS has partnered with SonyLIV for digital transformation and with Wavin to implement ERP on cloud.
• Wipro launched @now Studio in Texas and Google Cloud Garages for enterprise clients.
• SAP India and Microsoft launched TechSaksham to train 62,000 women in technology.

R&D and Innovation

• Companies are investing heavily in R&D and employee training to enhance product and service differentiation.
• TCS has focused on building intellectual property in digital assurance.
• Nasscom and Microsoft launched a nationwide AI skilling initiative to train 1 million students by 2021.

Government Initiatives

• The Indian government has launched various initiatives to support the IT & BPM sector, including tax holidays, infrastructure development, and skilling programs.
• MeitY has approved 14 applicants under the PLI scheme for IT hardware.
• NIELIT has set up five new training centres in North Eastern states to boost employment and training.

Growth Drivers and Opportunities

Cybersecurity

• The Ministry of Home Affairs and NCIIPC are working on a national cybersecurity strategy.
• A cyber lab is being established for capacity building in cyber law and digital forensics.

Emerging Verticals

• Retail, healthcare, utilities, and media are emerging as key verticals driving growth.
• The adoption of technologies such as telemedicine, health solutions, and 5G is expected to bring ~US$10 billion in global business to Indian IT firms by 2025.

Investment Attraction

• The IT & BPM sector is the second-largest recipient of PE investments in India, with ~US$7.5 billion in 2020.
• FDI inflows in the sector reached ~US$74.12 billion between 2000 and 2021, with ~44% share in FY21.
• Government initiatives such as Digital India, MegheA, and Visvesvaraya PhD Scheme are promoting IT growth and innovation.

Geographical Expansion

• Non-US-UK countries are showing increasing demand for IT services.
• Tier II cities are emerging as new IT and BPM hubs.
• STPI and SEZs are supporting infrastructure development and export growth, with STPI units available in tier II and III cities.

Key Industry Contacts

• Nasscom: Leading industry body for IT and BPM.
• STPI: Provides infrastructure and single window clearance for IT companies.
• MeitY: Governing body for IT and electronics.
• DPIIT: Releases FDI data for the IT sector.
• NIELIT: Focuses on training and employment in IT and BPM.

Appendix

• Market size growth: IT & BPM industry is projected to grow to ~US$350 billion by 2025.
• Export revenue: Expected to reach ~US$400 billion by March 2022.
• Cloud adoption: Expected to grow to ~US$7.1 billion by 2022.
• Data centre investments: Estimated to reach ~US$28 billion in India between 2019 and 2025.
• PE investments: IT & BPM sector received ~US$7.5 billion in 2020.

Conclusion

The Indian IT & BPM industry is a major economic driver, with strong growth prospects and favorable policy support. The expansion into new geographies and verticals, investment in cloud and digital transformation, and enhanced R&D and talent development are key growth drivers. The government's initiatives and strategic partnerships further solidify India's position as a global leader in IT and BPM services.