Information and Communication Technology
The ICT sector is one of the largest employers in India. India is also the world's largest sourcing destinations for the ICT sector accounting for over 55% market share of USD 185 billion global services sourcing business in 2017-18.
India has become a preferred hub for international companies to set up their offices in India. India provides a cost advantage in terms of resources availability at reasonable prices and specifically inexpensive skilled IT workers allowing companies to save almost 60 - 70% of the cost over the source country which acts as the selling point in the global markets.
India has become the digital capabilities hub of the world with around 75% of global digital talent present in the country. With the advent of new technologies, leading Indian IT firms are continuously expanding their product offerings and adding artificial intelligence and blockchain-based developments and creating research and development centres in India. India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India. Many large global companies target India as a prospective destination to expand their business because of its large consumer demand, bringing with them new technology.
- Cost-based advantage allows Indian companies to develop software at prices up to 5 times cheaper than foreign nations.
- Introduction of technology allows cross-border outsourcing of work and increases the efficiency of the communication process between remote teams, allowing such teams to work on various aspects based on their specialisation.
- Introduction of new telecom operators has added to the growth in other sectors because of digitalisation of several processes and increase in the number of internet users.
- Apple Inc.
- HCL Technologies
- Larsen & Toubro Infotech
- Tech Mahindra
- The revenue of the ICT sector is expected to reach USD 225 billion by 2020. Exports from the IT sector accounted for USD 126 billion in FY 2018 while the domestic revenues from IT sales were USD 41 billion.
- The Total PE and VC investments in FY17 stood at ~USD 7 billion, which increased at a CAGR of 27.5%
- The number of internet users is expected to increase to 730 million by 2020 from the current number of 500 million.