Test Engineer[1]

Future Trends for IT-ITES Sector in India

The IT-ITeS industry has been fuelling India?s growth story. In addition to contributing to the country?s Gross domestic Product (GDP) and exports, the industry has played a big role in influencing the socio-economic parameters across the country. The industry has helped provide employment and a good standard of living to millions. The IT-ITeS industry has almost doubled in terms of revenue and contribution to India?s GDP over the last six years (2008-2013). Export account for over 70% and domestic market account for 21% of the Industry revenue.

India?s acceptance as a preferred offshoring destination in the world is one of the main reason for the growth of export in Indian IT and ITES Industry. Again with the increased spending by Indian companies on IT and ITES services, domestic market will be a major area of growth in the future and it is expected to grow at 8% in the near term.

The major segments of the Industry are IT Services, BPO, and Engineering Services, R&D, and Products. Software products form the fastest growing segment of the global IT industry, with the software spends forecast to grow from USD 294 billion in FY 2008 to USD 537 billion in 2015. Over the same period, the addressable market for Indian software product businesses is estimated to reach USD 290 to 315 billion. The next decade will play a crucial role in bringing about disruptive growth for the Indian Software Products segment, and the annual revenue aggregate of this segment is forecast to grow from USD 1.4 billion in FY2008 to USD 9.5 to 12 billion by FY2015. Over the past 3 years, the annual revenue aggregate of Indian software product businesses has grown at a CAGR of 44%.

The growth is likely to be in the areas of Business Intelligence (BI), Enterprise Resource Management (ERM), storage, security, BFSI, telecom, healthcare, retail, search engine marketing, mobile applications, social networking, and online gaming.

In the IT Exports segment, a large portion of the workforce is currently engineers and MCAs over 80%. The proportion of graduates of science and other streams engaged in software development is expected to show significant increase from about 5% to 10% currently to about 15% to 20%.

Based on the trends witnessed in productivity and the likely growth potential of the IT and ITES industry, it is expected that the industry would result in an incremental employment of about 7.5 million persons directly by 2022.