ICT BOOM IN INDIA

GROUP PRESENTATION

GROUP 7 – 122081, 122139, 122143

2

Introduction

• India and Indian economy

• Indian ICT sectorIT-ITES,BPO

Electronic Hardware

Telecommunication

3

Indian IT-ITES, BPO• IT, ITES & Business Process Outsourcing sectors

have shown tremendous growth in the past decade

• It is estimated that India has:

- 62% share of USD 68 bn global technology

service market(IT services, Engineering,

R&D)

- 32% share of USD 37 bn global business

outsourcing market

4

Electronics Hardware• The electronics industry include

• semiconductor design

• high-tech manufacturing

• electronic components

• EMS

• electronic systems design for consumer

electronic products

• telecommunication products, etc.

5

• The electronic hardware industry in India

is still orientated towards the domestic

market.

• The market is fragmented, lacks a

component base and has infrastructural

barriers with high cost of finance and high

technological obsolescence.

6

Telecommunication

• India is the world’s second-largest telecom

market.

• The telecom market can be classified as:

• Wireless

• Landline (wired line)

• Internet and broadband

• Value added services

• ILD/NLD enterprise data

• Telecom equipment

• Infrastructure

7

ICT Research & Development

• The entry of R&D centers into India started in the mid-

1980s

• Today, over 600 Multinational Companies are sourcing

product development and engineering services from their

centers in India

• Multinational firms dominate the innovation space through

their Indian R&D centers

8

• Large domestic players also provide ‘engineering

services and R&D and software products’ wherein they

undertake product development activities performed for

external clients

• Over 74% of engineering services, R&D and software

products revenue is from exports.

9

Government Policies and

Initiatives

• By encouraging foreign participation in most sectors of

the economy, policy makers in India have placed

following initiatives.

- Copyright protection and cyber laws were

included in the comprehensive Information

Technology (IT) Act introduced in 2000

- Creation of software parks, Special economic

zones and knowledge sector industrial

estates with relaxed regulatory and tax

structures

10

• Introduction of Information Technology Investment

Regions (ITIRs) schemes in 2008 under which

each state in India can set up an integrated

township for facilitating growth of IT / BPO, with

provision of world-class infrastructure, supported

by investor-friendly policies

11

Emerging Technologies

• Emerging technologies are,

Cloud computing

Business intelligence

Mobility

Social media

• They are transforming businesses and sparking

a new wave of wealth creation, particularly in

the emerging world.

12

Cloud Computing

• Cloud Computing is a concept newly developed

in the IT domain and is growing at a very fast

pace across the world

• This technology allows for much more efficient

computing by centralizing storage, memory,

processing and bandwidth

13

• Under the cloud computing concept, services can

be availed under following three categories,

1. Software as a Service (SaaS)

2. Platform as a Service (PaaS)

3. Infrastructure as a Service (IaaS)

• The major challenges that the cloud companies

have to face in India are around data security and

reliability, lack of customization, lack of training and

support and poor market reach

14

Business Intelligence

• India is the fastest growing Business

Intelligence (BI) Platforms market in Asia

Organizations are turning into BI as a vital tool

for smarter, more agile and efficient business

• They increase the current usage scenario from

just an information delivery mechanism

15

• In a booming economy, business intelligence offers

value over and above the natural growth rate, and this is

where a huge untapped market lies in India

• While the market poses a huge opportunity, the lack of

definition or agreement of what and how to

measure/analyze the business will continue to inhibit

successful deployments, discouraging organizations

from further investing in BI

• Right pricing, awareness and customization of BI

Solutions especially for SMEs would be key challenges

for solution providers

16

Mobility• Enterprise mobility (EM) is the biggest single trend

across the tech industry investment

• EM market in India is set to witness a major boom

in its adoption in the ensuing years

• Rapid change in the business models of

organizations and demand to engage a better and

competent mobile workforce is primarily propelling

adoption of EM in the market

17

• Adoption of EM applications in the intra-

enterprise space is low but gaining momentum

• India is still at a stage where only a few sectors

like retail and BFSI are using mobility apps for

conventional areas like sales force automation

and transaction management

• Other early adopter market segments include

Pharmaceuticals, Transportation and Logistics

sectors

18

Social Media• The social media marketing has shown a tremendous

growth in the recent time with majority of companies

adopting business models around social media,

using the platform to market events, generate sales,

introduce innovative concepts and even create a new

market for their brands online

• A survey by Nielsen found that 70% of social media

users in India accessed a social networking site

every day

19

• 89% of 15-20 year old users accessed a social

networking site every day and 60% of them

spend at least half an hour on it daily

• 37% of heavy social media users in India (who

use it multiple times a day) fall in the age group

of 21-30 years

• The world top sites for social media in India are:

Facebook, Twitter, Blogger, YouTube and

Wikipedia

20

India’s Current Growth

Potential and opportunities

in IT sector

21

• Indian domestic market is still heavily dominated by

voice-based services

• ICT-enabled solutions in healthcare, education,

financial services and public services can drive socio-

economic inclusion

• India is one of the leading offshore destinations in

delivering engineering research and development

(ER&D) services with a market share of 22 per cent

• The information technology (IT) and business process

outsourcing (BPO) sector of India is expected to

register a growth of 11 per cent

22

• The public cloud services market in India is projected to

grow

• India has become a key contributor in global research and

of growth in the Asia-Pacific (APAC) region

• With more attractive and investor-friendly industrial

policies and foreign direct investment (FDI) policies, India

has become one of the favorite destinations for ICT

investment portfolios.

23

Investment Opportunities

in Indian ICT Sector• Investment is being done in four key sectors They

are,

Software merchandise

Information technology based services

Information technology services

Online businesses

• The constant rise in investment by Small and Medium

Enterprises

• Investment for good quality and efficient mobile

broadband services with enhanced speed in order to

satisfy internet users

24

Government Initiatives to

Encourage Foreign

Investment in ICT Sector

25

• The Public Private Partnership and several government initiatives

have helped to curtail the gap between Research & Development

and Infrastructure segments in ICT industry

• The important fiscal incentives offered by the Indian government

in this sector are Software Technology Parks (STP), Export-

Oriented Units (EOUs) and Special Economic Zones (SEZ)

• Recently, R&D promotion has been encouraged by the

government in very aggressive and efficient way

• Apart from the current scheme of financing R&D projects, the

government has also put in place two more schemes – Multiplier

Grants Scheme (MGS) and Support International Patent

Protection in Electronics & IT (SIP-EIT)

26

• Indian government is planning to modify foreign direct

investment norms by permitting 100% FDI in Indian

telecom sector. Currently, FDI of up to 100% is permitted

in following sectors –

Internet Service Providers not offering gateways

Infrastructure Providers offering Dark Fiber

Electronic Mail

Voice Mail

• The Cabinet has given approval to National Policy on IT

2012 which is projected to leverage the ICT to deal with

developmental and economic challenges of the country.

27

• The objectives of the National Policy on Information

Technology include:

- To transform India into a global hub for the expansion of

language technologies

- To develop a pool of 10 million skilled manpower in the

Indian ICT sector

- To achieve significant market share in global

technologies and services

- To offer fiscal benefits to foreign investors and Small

Medium Enterprises (SMEs)

- To promote adoption of ICTs in strategic and economic

sectors to enhance the productivity and competitiveness

of ICT

28

Effects of ICT boom in

India

29

Promote innovation and R&D in cutting edge technologies

and develop applications and solutions in location based

services, mobile value added services, cloud computing,

social media and utility models

has triggered a chain of growth in all sectors of the

Industry

massive educated and technology focused workforce

which is leading India to become one of the top economies

of the world by 2020

30

RisksEconomic Risks

Economic uncertainty

The economy has shown correlation with global sentiment

Inflation

The inflation has been high in the last years

Currency

The Indian Rupee continues to be volatile. Significant

fluctuations have created uncertainties for import-export

oriented businesses.

31

Land and Infrastructure

The projections of further expansion in key areas will have a

further impact on the strained lines of transportation.

The key problems include power demand shortfall, port traffic

capacity mismatch and poor road conditions

Energy Risks

• Inefficient power

• Import Dependency

32

National Risks

Political stability

In past several decades no single party has been able to gain

the majority of seats in general elections and therefore coalition

governments have ruled the nation

Regional sources of Instability

The situation in the state of Jammu Kashmir and relationship of

India with the neighbor Pakistan is one of the major sources of

instability in the region.

Increased number of terrorist incidents

33

THANK YOU