- Industry revenues (excl. eCommerce) at USD 155.5 billion (in constant currency)
- Exports growing at 8.6% in constant currency
- IT services reaches USD 80 billion
- ER&D and Product Development revenues ~USD 29 billion
- World’s biggest BPM destination- Revenues of USD 30 billion
- Domestic is expected to grow by 8.5% YoY to reach USD 38 billion
- Industry employee base reaches 3.86 million, addition of 1.7 lakh in FY2017
- Digital accounts for 14% of industry revenues
The
Indian technology industry is growing on the transformation path to become a
digital technology industry by developing its digital capabilities and reorganising
itself to make the most of this opportunity. These and many other industry
trends were discussed at start of the 25th edition of the annual
NASSCOM India Leadership Forum. Sharing their views, Mr. CP Gurnani, Chairman,
NASSCOM, Mr. Raman Roy, Vice Chairman, NASSCOM and Mr. R Chandrashekhar,
President, NASSCOM, said that with companies actively exploring new engagement
models, there is a growing need for the companies to restructure and focus on
capacity development to address the digital opportunities.
On the industry’s performance in
FY2017, NASSCOM said that amidst continuous technology disruptions, political
upheavals, and slowdown in IT-BPM global spending, the Indian IT-BPM industry
is projected to grow at a rate of 8.6% (in constant currency) to reach over
USD 155 bn in FY2017. IT-BPM exports from India is expected to reach USD 118
billion. India’s domestic IT-BPM market is expected to grow by 12% YoY to reach
INR 2,545 bn. The industry currently employs over 3.86 mn people, growth of 5% and
addition of 1.7 lakh people over FY2016. In terms of the markets, US and APAC are fastest growing at 7.8% with gradual
stabilization in the growth of the European market. Retail, healthcare and
travel & transportation have been the key verticals for the Indian IT-BPM
industry, growing at the rate of 8%.
Sharing
his views, Mr. CP Gurnani, Chairman, NASSCOM, and MD & CEO, Tech
Mahindra, said, “The digital tsunami is reshaping our industry
the priority is to reimagine businesses and unlock new opportunities. The
Indian IT-BPM Sector is emerging as a digital solutions partner for global
corporations and we are excited to work across stakeholders – customers,
start-ups, academia and others to build this exciting future”.
Mr.
R Chandrashekhar, President, NASSCOM, said, “while there
are some uncertainties in the short term, the initial data from global analysts
on tech spending in 2018 is promising, We are initiating deeper interactions
with all stakeholders – global customers and industry providers – to get a more
reliable and clear perspective on the projections for FY2018 and will give the
guidance in the next
quarter”.
India
is positioning itself as the digital transformation partner for global
businesses. The new
emerging technologies will open up multiple areas of work for the industry
and will have a
significant impact on existing service lines. To brace the
impact, one of the most important imperatives for the industry will be to skill
/ reskill the talent to gear them up for the digital opportunity. It is also
important to build an industry-wide collaborative model and shape a learning
ecosystem that is primed for the future. While the existing service lines will
be re-imagined, newer and
deeper soft-skills will be needed with increased
autonomy, empowerment, and data enablement of frontline teams.
The future skills work
group at NASSCOM, in partnership with BCG, is working together with the
industry on a two-pronged approach to enhance the skills ecosystem -
Skills vs ‘Job-specific’ Curriculum and Tech enabled Learning Ecosystem. The
skills vs job-specific curriculum will mean blended job roles of the future with focus on skill
based learning and certification. The Tech-enabled Learning ecosystem will be
aimed at leveraging technology for building the skills that is scalable &
agile with focus on mobility and analytics to provide reach and efficiency. The
initiative aims to skill / reskill 1.5-2 million people to be skilled over the
next 4-5 years. This is a unique collaborative model in partnership with leading
industry players.