Introduction

India is the largest outsourcing destination globally, accounting for more than 52% of the global market. IT sector is the largest employer within the private services sector. Indian IT industry has more than 17 000 firms, of which over 1 000 are large firms with over 50 delivery locations in India. India has become the global digital capabilities hub with 75% of global digital talent within the country. India’s IT-BPM industry total revenues total revene stood at $194 billion in 2020-21. Export revenue from IT & BPM services for FY2020-21 accounts for $150 billion. The sector contributes to more than 45% share in India’s exports. India spends $1.6 billion annually on training work force in the sector. India is one of the preferred destinations when it comes to setting up Global Capability Centres (GCCs). At present, more than 1 400 GCCs have more than 2 300 GCC units in India, employing more than 1.38 million professionals.

100% FDI
allowed under
automatic route

Current Scenario

  • The sector accounted for 14.19% share in total FDI inflows over April 2000 to December 2021. Total FDI inflows in computer hardware & software during the said period stood at $ 81.30 billion
  • Investment in software has increased 170% over 2020
  • India has the 2nd highest number of internet subscribers in the world
  • The sector contributes to 8% (approx.) of India’s GDP & is

Investment Opportunities

  • Setting up of IT services, BPM, software product companies, shared service centers
  • Fast-growing sectors within the BPM domain –knowledge services, data analytics, legal services, Business Process as a Service (BPaaS), cloud-based services
  • IT services & fast-growing sectors within it such as solutions & services around Social, Mobile, Analytics, Cloud (SMAC), Information Systems (IS) outsourcing, IT consulting, software testing
  • Internet of Things (IoT), Artificial intelligence (AI)

Why Invest?

  • Largest market share in global services outsourcing industry. 3rdlargest tech start-up hub globally
  • Low-cost advantage by being 3-4 times inexpensive than US
  • India’s IT industry contributed 8% to the country’s GDP. Estimated per capita data consumption likely to hit 25GB / month by 2025
  • Rapidly growing urban infrastructure has fostered several IT centers in the country

Read Ahead

  • Artificial intelligence & new age technology to boost India’s annual growth rate by 1.3% by 2035
  • Private sector working in tandem with Government to strategize, implement & execute next generation tech like AI, smart cities, blockchain, IoT, etc.
  • Government has identified IT as 1 of the 12 champion service sectors for which an action plan is being developed. It is setting up a $ 745.82 million fund for realizing true potential of these champion service sectors
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