Latest News  

Indian IT & services industry on track to reach USD 225 billion by 2020

Indian technology and services industry is on track to reach its goal of USD 200 billion to USD 225 billion in revenues by 2020 and furthermore, to reach revenues of USD 350 billion by 2025, said NASSCOM in its latest report, quoted by firstpost.com.

2015-10-19 15:29:16

The report, titled Perspective 2025: Shaping the Digital Revolution, which is based on research conducted for over a year by McKinsey & Company, stated that technology is becoming a dominant factor in capex, making return on technology investment a key success factor for enterprises.

With a $6 trillion cumulative technology capital investment globally, the economic landscape will be split among three types of enterprises: digital leaders and attackers, smart followers, and digital laggards.

Each of these enterprises will operate a varied mix of disruptive, transformative, and traditional technology, mirrored in their investment choices. Driven by the adoption of digital technology, the total addressable market for global technology and business services will likely expand to about $4 trillion by 2025, growing at an average annual rate of about 3.6 percent, the report added.

The big implications for companies are: the need to develop new service lines. New service lines will account for 40 percent of all revenues by 2025; shifting portfolios to advanced, disruptive technologies; managing customer digitization at different speeds. Companies will need to cater to customers who are Digital leaders, Smart followers as well as the Digital laggards; re-skilling of people as revenues decouple from headcount; and forging new capabilities through M&A, partnerships, incubators and open innovation.
CP Gurnani, vice chairman, NASSCOM, said, “Digital leaders and attackers will make significant investments to convert their entire system into digital architecture. Smart followers will deploy digital technologies into their front end services, while retaining the legacy technologies for the moment. Digital laggards will keep most of their legacy systems, making only incremental investments in digital tech.’’

Probably the most pressing need is for companies to develop offerings along new digital service lines, even as they re-invent their traditional service lines. Noshir Kaka, managing director, McKinsey & Company, India said, “Companies hoping to prosper in the new environment will have to closely watch six new service lines - including the Internet of Things, cybersecurity, social, mobility, analytics and cloud.”

Overall, the share of digital technology investment in cumulative expenditures will rise from 10 percent in 2014 to 35 percent in 2020 and 60 per cent in 2025, according to the report.
About 80 percent of incremental expenditures will be driven by digital technologies. These could be platforms, cloud-based applications, big data analytics, mobile systems, social media, and cybersecurity, as well as services needed to integrate these technologies with legacy tech.
Half of this incremental investment will be funded by a projected 20 to 25 percent cut in legacy expenditures. These reductions will be largely in spends on infrastructure, traditional application development and packaged software.
The global addressable market for Business Process management (BPM) services will likely touch about $ 260 billion by 2025, for an annual average growth rate of 4 to 6 per cent. Expansion will be driven by business process-as-a-service offerings and big data analytics.
The global total addressable market for engineering services will likely reach up to $480 billion by 2025, a compound average growth rate of 8 percent. The share of embedded software will rise significantly and lines between investment in engineering services and information and communications technology will blur.
Technology and business services expenditures in India is projected to reach $120 billion to $130 billion by 2025, an average annual growth rate of 10 percent.
Over the next decade, five disruptive forces will shake the global economy and touch all aspects of society. These forces will create a world that is more interconnected, more interactive, and more aware, while at the same time one that is trying to harness and protect the same set of finite resources.

This digital transformation that is impacting the global economy is also creating new imperatives for India’s growth, with many companies adopting digital technologies into their business models. For 2015 & beyond, the growth rate is likely to be ahead of many other leading economies such as China, Brazil and Russia, the report claimed.

The report outlines key steps that are needed to become a global centre for innovation in digital technology:
-- Foster Innovation clusters: that will fund research in key emerging technologies and linked to technology institutes.
-- Build Capabilities: Design, develop and rollout a massive reskilling programme to train and reskill 4-5 million people.
-- Entrepreneurship: Turbo-charge the startup economy and government’s ongoing Startup India programme.
-- Branding: Undertake a branding and public relations exercise, media campaign to reposition India as a global Digital Innovation Hub, moving ahead from its current pole position of low cost and efficiency leader.
-- Regulatory: To support the development of India as a centre for digital innovation, new regulations should help create a domestic market, protect intellectual property, strengthen cyber-security laws and ease the creation of public-private partnerships in education.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
US company Visteon looks for software developers at Timisoara

Visteon, automotive supplier focused exclusively on cockpit electronics, it is setting up a new product development center in Timisoara, Romania. The company plans to build a team of 400 employees in Romania,

 Read Full article »
Gabriela Mechea takes over the helm of ANIS

The Software and Services Industry Employers Association ANIS appointed Gabriela Mechea as the organizations' executive director, replacing Valerica Dragomir who left the association after 17 years.

 Read Full article »
Poll: 2018 was hard for recruiting – 29 Interviews to one hire

Nearly nine out of ten companies had a tougher time finding suitable employees in 2018 compared with previous years, interviewing an average 29 candidates before hiring one person, a poll by HappyRecruiter show

 Read Full article »
CBRE maintains its market leader ranking with 24 per cent market share on the Bucharest-based office segment

In 2018, CBRE, the real estate consultant managed 24 per cent of the Bucharest-based office market, according to a release of the company.

 Read Full article »
Philippe Beucher takes a new opportunity outside Capgemini

After 5 years spent in Capgemini, Philippe Beucher, the Romanian company's branch CEO announced he decided to take another opportunity outside of the Group as of January 15th.

 Read Full article »
Amazon expands at Iasi with 5000 sqm of offices

At the end of 2020, the American company Amazon will rent an additional 5.000 sqm office spaces at Iasi, to amount over 18.000 sqm office space in Romania, according to sources in the real estate market and quo

 Read Full article »
Accelerator programme Legal Tech Hub Vienna to offer support for legal tech companies

The law firms Dorda, Eisenberger & Herzog, Herbst Kinsky, PHH, Schoenherr, SCWP Schindhelm and Wolf Theiss, today launched the Legal Tech Hub Vienna (LTH Vienna). The unique initiative, that brings together sev

 Read Full article »
Fusion and purchase market in Romania close to 2 billion euro in 2018

The fusion and purchase market in Romania came close to two billion Euro in 2018, according to an analysis made by Deloitte Romania, based on public sources and transactions made public.

 Read Full article »
DXC Technology to Acquire Leading Digital Innovator Luxoft

End-to-end IT services and solutions developer DXC Technology and Luxoft Holding announced a definitive agreement for DXC to acquire Luxoft, a global-scale digital innovator with differentiated offerings, deep

 Read Full article »
KPMG study: Big data needs a big re-think: consumers are more anxious, but businesses can restore trust with greater transparency

Global KPMG study of 25,000 consumers reveals that we are embracing new technology, but are concerned about the types of data held by businesses.

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» Deloitte's Tech Trends 2019 report: B...
» TELUS International Europe awarded Mos...
» Deloitte: Leadership disrupted: Pushin...
» Academic efforts to grow the employee ...
» Endava expands its IT team in Republic...
» Genpact named leader in global banking...
» Centric to double Iasi opps, leases 1,...
» Deloitte: Anxious millennials seek sta...
» CrowdStrike opens a new center of inno...
 
EDITOR CHOICE
Deloitte's Tech Trends 2019 report: Beyond the digital frontier

The recently released Deloitte's Tech Trends 2019: Beyond the digital frontier, as each Tech Trends report in the series conducted by the consultancy company, lobbies for embracing the increasing, often mind-b

 Read Full article »
KPMG study: Big data needs a big re-think: consumers are more anxious, but businesses can restore trust with greater transparency

Global KPMG study of 25,000 consumers reveals that we are embracing new technology, but are concerned about the types of data held by businesses.

 Read Full article »
Manpower: Romania's labor market, more prudent in the first quarter of 2019

More than two thirds (70 per cent) of employers in Romania anticipate no changes in the size of their payrolls in the first quarter (Q1) of 2019, the largest percentage in over two years, and this suggests the

 Read Full article »
Noni Jain, Wipro Europe: It is fundamental how you coach the employees and prepare them for the next level of an evolving organization

How do you attract and retain a globally-mobile workforce? What technologies do you need in your arsenal to get the most from the tech-savvy "Generation Y"? To drive innovation and attract and retain top talent

 Read Full article »
Ascentis: The top ten HR trends for 2019

Ascentis, specializing in in integrated Human Capital Management software published the main HR trends for 2019, findings resulted from the work together with their workforce and leadership strategist Eric Swen

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events