* In FY22, the top three Indian IT companies, TCS, Wipro and Infosys, were expected to offer 1.05 lakh job opportunities due to the increasing demand for talent and skill.
* India‘s IT and business services market is projected to reach US$ 19.93 billion by 2025.
* The IT spending in India is estimated to record a double-digit growth of 11.1 per cent in 2024, totaling $138.6 billion up from $124.7 billion last year.
* Indian IT firms have delivery centres all across the world.
* IT & BPM industry is well diversified across verticals such as BFSI, telecom and retail.
* Increasing strategic alliance between domestic and international players to deliver solutions across the globe.
* India’s technology industry is on track to double its revenue to US$ 500 billion by 2030.
* India’s overall Digital Competitiveness Score of 60 (on 100) , Ahead of every BRICs nations besides China, refelects the rise of tech talent in the country,
* Japanese investments in the Indian IT sector grew 4X between 2016-20. Investments stood at US$ 9.2 billion over the last two decades.
* In the Union Budget 2023-24, the allocation for IT and telecom sector stood at Rs. 97,579.05 crore (US$ 11.8 billion).
* The government prioritizes cybersecurity, hyper-scale computing, AI, and blockchain. With data costs at Rs. 10/GB ($0.12/GB), India ranks among the world's cheapest.
With a considerable impact on the GDP and welfare of the nation, the IT & BPM sector has emerged as one of India's most important economic drivers. In FY23, the IT sector contributed 7.5% of India's GDP, and by 2025, it is anticipated to make up 10% of India's GDP.
According to the National Association of Software and Service Companies (NASSCOM), the Indian IT industry’s revenue touched US$ 227 billion in FY22, a 15.5% YoY growth. The IT spending in India is estimated to record a double-digit growth of 11.1 % in 2024, totalling US$ 138.6 billion up from US$ 124.7 billion last year.
According to a report published by Microsoft, consultancy firm Bain & Co, and industry body Internet and Mobile Association of India (IAMAI), India produces 16% of the entire world’s AI talent pool – the third highest in the world. PwC India also announced that it was planning to hire 10,000 employees in the cloud and digital technologies space over the next five years.
India's IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP), Infomerics Ratings said in a report.
As an estimate, India’s IT export revenue rose by 9% in constant currency terms to US$ 194 billion in FY23. Exports from the Indian IT services industry stood at US$ 199 billion in FY24.
The export of IT services was the major contributor, accounting for more than 53% of total IT exports (including hardware).
BPM and engineering and R&D (ER&D) and software products exports accounted for 22% and 25%, respectively of total IT exports during FY23.
The IT industry added 2.9 lakh new jobs taking the industry’s workforce tally to 5.4 million people in FY23.
The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 102.9 billion between April 2000-March 2024. The sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
In 2022, PE Investments in IT and BPM industry almost halved to US$ 12.3 billion as against US$ 23.4 in 2021.
Direct employment in the IT services and BPO/ITeS segment was estimated to reach 5.4 million in FY23 with an addition of 290,000 people.
Amazon Web Services announced the launch of its second AWS infrastructure region in India - the AWS Asia Pacific (Hyderabad) Region. By 2030, it is anticipated that the region will support more than 48,000 full-time jobs annually thanks to investments totalling more than US$ 4.4 billion in India.
Bangalore-based edtech startup ‘BygC’ launched India’s first upskilling-focused community platform for young graduates and people seeking jobs in the BFSI sector. Tech Mahindra Foundation and Wipro GE Healthcare have also joined forces to offer skilling and upskilling courses to students and healthcare technicians.
SAP India and Microsoft have announced the introduction of TechSaksham, a collaborative skilling initiative aimed at enabling young women (from underprivileged regions) to pursue careers in technology. 62,000 women students will be trained in artificial intelligence (AI), cloud computing, web design and digital marketing.
The revenue of India’s public cloud services market totalled US$ 6.2 billion in 2022, and it is expected to reach US$ 17.8 billion by 2027 growing at a CAGR of 23.4%.
Infosys announced that it has set up an Automotive Digital Technology and Innovation Centre in Stuttgart, Germany. Automotive IT infrastructure professionals stationed in Germany will transfer from Daimler AG to the new Digital Technology and Innovation Centre as part of Infosys' relationship with Daimler.
Regarding government initiatives, the government has introduced the STP Scheme, which is a 100% export-oriented scheme for the development and export of computer software, including the export of professional services using communication links or physical media.
The government prioritizes cybersecurity, hyper-scale computing, AI, and blockchain. With data costs at Rs. 10/GB ($0.12/GB), India ranks among the world's cheapest.
The Cabinet approved an allocation of over Rs. 10,300 (US$ 1.2 billion) crore for the IndiaAI Mission, marking a significant step towards bolstering India’s AI ecosystem.
Cabinet approved PLI Scheme – 2.0 for IT Hardware with a budgetary outlay of Rs. 17,000 crore (US$ 2.06 billion).
The Indian government announced a plan to build a cyber-lab for the ‘Online Capacity Building Programme on Crime Investigation, Cyber Law, and Digital Forensics’ to strengthen cyber security capabilities.
The Data Security Council of India (DSCI) - National Center of Excellence for Cyber Security Technology Development (NCoE) and Chitkara University have collaborated to undertake joint programmes on cyber security and privacy.
The Indian government launched the Meghalaya Enterprise Architecture Project (MeghEA) to boost service delivery and governance in the state by leveraging digital technologies, to make Meghalaya a high-income state by 2030.
This push towards cloud services has boosted hyper-scale data centre investments, with global investments estimated to exceed US$ 200 billion annually by 2025. India is expected to gain a significant share of the global market, with the country's investment expected to hit US$ 5 billion annually by 2025. India’s data centre market is expected to reach a value of US$ 9.96 billion by 2028 from US$ 5.42 billion in 2022, growing at a CAGR of 10.69%
By 2025-26, India is expected to have 60–65 million jobs that require digital skills, according to a Ministry of Electronics & IT report titled "India's trillion-dollar digital opportunity."
Notes: AI - Artificial Intelligence
References: Media Reports, Press Information Bureau (PIB), Department for Promotion of Industry and Internal Trade (DPIIT), Department of Information and Technology
