IT And ITES - Using Technology To Create An Impact
IT And ITES - Using Technology To Create An Impact
By Abhijeet Sachedva and Sanya Dang
August 14th, 2019
About the sector
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country. The IT sector in India is generating 2.5 million direct employment. India is now one of the biggest IT capitals of the modern world and all the major players in the world IT sector are present in the country. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the USD 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world.
It is estimated that the Indian IT industry would grow to about $300 billion by 2020, with software services and e-commerce leading the race. The government of India has taken several initiatives to promote the industry and several of the states have extended several benefits to the industry members.
The Success Story
The Indian IT/ITeS industry has made one of the greatest success stories in modern India putting the country on the global map as the leader in the Information Technology (IT) and Business Process Outsourcing (BPO). The Indian Information Technology (IT) and Information Technology Enabled Services (ITeS) sectors go hand-in-hand, in every aspect. The industry has not only transformed India’s image on the global scene but also fuelled economic growth and has contributed a lot to social transformation in the country. India has the opportunity to tap a market that is growing day by day with its cost advantage, huge resource pool, and expertise. This sector has evolved over the past few years with the main focus on the execution of Business Processes and Information/ Data Security, End User Privacy, Business Contingency, Technology, People Management and above all efficiency, productivity and customer satisfaction.
Scope of Industry
Customer Interaction & Support (CIS) - It comprises of all forms of IT-enabled consumer contact; inbound or outbound, voice or non-voice-based support managed to provide customer services, sales, and marketing, technical support and help desk services.
Finance & Accounting (F&A) - This involves activities such as transaction management, general accounting, account receivables, and payables management, corporate finance (e.g. treasury and risk management, tax management, compliance management, and statutory reporting, etc.)
Horizontal-Specific BPM Services - Services that are similar across various industries. Horizontal BPM services involve Customer Interaction and Support (CIS), Knowledge Services, Finance and Accounting (F&A), Human Resource Management (HRM), Procurement BPM, and other related processing services.
Human Resources Processing - HR processing services involve services that promote the core HR activities plus talent management activities and associated business processes, such as benefits, payroll and talent management.
Knowledge Services- It includes services like Business Research, Market research, Data management & reporting, Data analytics, Social media research, risk management.
The IT & ITeS industry in India has grown to USD 181 billion in FY2018-19. The domestic revenue of the IT industry is anticipated to grow at USD 44 billion and export revenue to grow at USD 137 billion in FY19. India’s IT-BPM sector market size is expected to grow to USD 350 billion by 2025 and BPM has an estimated value of USD 50-55 billion out of the total revenue. Revenue from the digital segment comprises 38 percent of the forecasted USD 350 billion industry revenue by 2025.
The Government of India is planning to search for new opportunities in different sectors such as providing BPO service from home, digital healthcare and agriculture to obtain the target of making India a USD 1 trillion digital economy. Government has taken actions to promote the IT and ITeS sector in India are as follows:
Information Technology has been recognized as one of the 12 champion service sectors by the government of India for these sectors government is developing various plans. for these sectors, the government has set up a fund for Rs 5,000 crore (USD 745.82 million) realizing their potential.
NITI Aayog is planning to set up a national-level program, as a part of Union Budget 2018-19. The program will enable trials in AI and will help in leveraging AI technology for development work in the country.
The Government of India has announced plans to start a national program on AI and establishment of a National AI portal in the Interim Budget 2019-20
The Government of Andhra Pradesh is targeting to draw investments worth US$ 2 billion and generate 100,000 jobs in the IT Industry in the state.
DARPAN (Digital Advancement of the Rural Post Office for a New India) was launched by the Government of India, for enhancing the quality and adding value to services and attaining financial inclusion for the unbanked rural population.
India is the leading offshoring destination for IT organizations across the world. The export revenue of the industry is anticipated to grow 7-9 per cent to USD 135-137 billion by FY19. The IT industry is expected to rise to USD 350 billion by 2025 and the BPM industry is expected to value for USD 50-55 billion out of the total revenue. Emerging technologies are offering new opportunities for IT firms in India.