It Sector Analysis of India
IT SECTOR ANALYSIS
Growth in export revenues (USD billion)
Growth in export revenues (USD billion)
Market size of IT industry in India (USD billion)
Market size of IT industry in India (USD billion)
In Information Technology, India has built up valuable brand image over the years. India is emerging as one of the most preferred destinations for IT and IT enabled services (ITES). The importance of IT industry in the Indian economy can be gauged from the fact that its contribution to the national gross domestic product (GDP) has increased by multiple folds in a span of just more than a decade from 1.2% in FY1998 to 7.5% in FY2012. IT–BPO sector in India gathered aggregated revenues of US$100 billion in FY2012. Between FY2008 and FY2012, the industry grew from Rs 2,534 bn to Rs 4639 bn, registering a CAGR of 16%. India’s growing stature as an IT giant enabled India to export its services to powerhouses like USA and European Union. This very fact is corroborated by the fact that IT industry’s contribution to Indian export has risen from 4% in 1998 to 25% in 2012. CAGR 13.6%
CAGR 13.6% IT sector can be basically classified into 4 parts
1. ITeS Business process outsourcing (BPO) – Market size USD19billion during FY12. These companies handle the back-end work for major corporations around the world.
2. IT- Services – Market size USD 52 Billion during FY12. These companies help in implementation of different software for documentation, security services, banking, telecommunication etc.
3. IT- Software products and engineering services – Market size USD 17billion during FY12.
4. IT- Hardware and peripherals – Market size USD 13billion during FY12. These companies produce IT hardware such as LCDs, printers keyboards etc.
The above pie chart shows the market share of major IT players based on revenues (FY2012). TCS is the market leader commanding about 10.1 per cent of the total Indian IT & ITeS sector’s revenue
The Indian IT - ITeS
Growth in export revenues (USD billion)
Growth in export revenues (USD billion)
Market size of IT industry in India (USD billion)
Market size of IT industry in India (USD billion)
In Information Technology, India has built up valuable brand image over the years. India is emerging as one of the most preferred destinations for IT and IT enabled services (ITES). The importance of IT industry in the Indian economy can be gauged from the fact that its contribution to the national gross domestic product (GDP) has increased by multiple folds in a span of just more than a decade from 1.2% in FY1998 to 7.5% in FY2012. IT–BPO sector in India gathered aggregated revenues of US$100 billion in FY2012. Between FY2008 and FY2012, the industry grew from Rs 2,534 bn to Rs 4639 bn, registering a CAGR of 16%. India’s growing stature as an IT giant enabled India to export its services to powerhouses like USA and European Union. This very fact is corroborated by the fact that IT industry’s contribution to Indian export has risen from 4% in 1998 to 25% in 2012. CAGR 13.6%
CAGR 13.6% IT sector can be basically classified into 4 parts
1. ITeS Business process outsourcing (BPO) – Market size USD19billion during FY12. These companies handle the back-end work for major corporations around the world.
2. IT- Services – Market size USD 52 Billion during FY12. These companies help in implementation of different software for documentation, security services, banking, telecommunication etc.
3. IT- Software products and engineering services – Market size USD 17billion during FY12.
4. IT- Hardware and peripherals – Market size USD 13billion during FY12. These companies produce IT hardware such as LCDs, printers keyboards etc.
The above pie chart shows the market share of major IT players based on revenues (FY2012). TCS is the market leader commanding about 10.1 per cent of the total Indian IT & ITeS sector’s revenue
The Indian IT - ITeS