FACILITATING FOREIGN DIRECT INVESTMENTS IN INDIAN BUSINESS AND INDUSTRY
FACILITATING FOREIGN DIRECT INVESTMENTS IN INDIAN BUSINESS AND INDUSTRY
Despite positive developments the cautious optimism of Indian IT leaders is justified this year, especially in the current situation as the technology sector is facing significant uncertainties including the impact of Brexit, the approaching US elections and the heat of the Coronavirus outbreak worldwide.
The $191-billion Indian IT industry is slated to grow slower in 2020 fiscal at 7.7% compared to 8.1% in the previous year. CEOs of Indian IT firms seem to be “cautiously optimistic” about the future due to global macroeconomic uncertainties.
FOCUS ON DIGITAL TRANSFORMATION
“Over the past year, the performance from the industry showcased the increasing focus on the digital transformation of businesses and also the expansion of digital-driven services to cater to clients across the globe. We are hopeful that this trend will continue to drive the growth of the industry in the coming years, and evangelizing innovation in the domain,” said Keshav Murugesh, Chairman, NASSCOM.
Top three growth drivers for IT business: Topping the list was large deals for digitalization; this was followed by growth in the key verticals of BFSI and retail; the third driver was enhanced business opportunities in Europe and APAC.
There are, however, three key risks: macroeconomic factors and global economic opportunities; lack of digital capabilities and skills; and cybersecurity. As for the digital acceleration strategy, reskilling and building the right talent pool is top priority; this was followed by products and platforms, and partnerships and co-innovation.
ANOTHER YEAR FOR HIRING
Despite the challenges, another strong year for hiring is expected. The industry will see 205,000 net new hires this fiscal, of a 4.36-million strong workforce.
A key trend witnessed last year was the continued focus on digital revenues, which grew by over 23%, once again a testimony to the prominence digital technologies and systems are gaining across portfolios. Investing in digital skills continues to rise as an imperative for the industry, with organisations building their capabilities and aligning business models to digital practices as up to 28% of organizational revenues was recorded for digital. Indian enterprises spent over $2 billion domestically to accelerate digital transformation.
Here are five megatrends and emerging technologies for the next decade, which will push digitization-led global output to nearly $100 trillion or 40% of 2030 global GDP. Top of the list is a data-led economy, with 175 zettabytes of data by 2030 disrupted future of work, environmental sustainability stress, Asian economic eminence and mass urbanization and hyper personalization.
Revenue from data-led solutions will offset new capital expenditure on data and analytics infrastructure, chief data officers will be ubiquitous. Megatrends 2030 will create unprecedented business and consumption shifts, pushing digitalization-led global output to nearly $100 trillion or 40% of 2030 global GDP.
During the past 10 years, the industry added 2 million direct jobs, creating 10,000 technology companies, crossing $105 billion in overall revenue, and attracting $50 billion-plus FDI.
India is emerging as the hub for “Digital Skills”. The country spends $1.6 bn annually on training workforce in the sector. The industry is the largest employer within the private sector, employing 3.9 mn people. India is transforming into a digital economy with over 450 mn plus internet subscribers; only second to China.
Indian IT industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market.
The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats (village council) in the country with high-speed broadband.
Up to 100% FDI is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services, under automatic route
100% FDI is permitted in B2B E-commerce.
INDIA IS THE NUMBER ONE SOURCING DESTINATION FOR IT-BPM GLOBALLY
The IT-BPM industry stood at $177 bn in 2019 and is expected to grow to $350 bn by 2025. The IT-BPM industry is the largest contributor to the total exports of the country, with 43% of the IT-BPM services being exported in 2018. Total revenue from IT services & BPM for FY2019-20 accounts for $135 bn.
The sector is headed towards achieving $1 tn digital economy by 2022. The country has become the global digital capabilities hub with around 75% of global digital talent present in the country.
FROM DATA PROCESSING TO ANALYTICS
Big data is changing how all of us do business. Today, remaining agile and competitive depends on having a clear, effective data processing strategy. While the six steps of data processing won’t change, the cloud has driven huge advances in technology that deliver the most advanced, cost-effective, and fastest data processing methods to date. As big data migrates to the cloud, client companies are realizing huge benefits. Big data cloud technologies allow for client companies to combine all of their platforms into one easily-adaptable system. As software changes and updates, cloud technology seamlessly integrates the new with the old. The benefits of cloud data processing are in no way limited to large corporations. In fact, smaller client companies can reap major benefits of their own. Cloud platforms are inexpensive and offer the flexibility to grow and expand capabilities as the company grows. It gives companies the ability to scale without a hefty price tag.
Businesses are quickly discovering that traditional data management systems and strategies are no longer capable of supporting their demands…a new generation of cloud-native, self-service platforms have become essential to the success of data programs, especially as companies look to expand their operations with new artificial intelligence, machine learning and analytics initiatives.
The future of data processing lies in the last step of the process - storage. Data needs to be quickly and easily accessible, so many businesses are looking toward the cloud. Cloud technology improves upon the current electronic data processing methods, thus making it faster and more efficient. The cloud is especially beneficial for big data - that is, data that is too large for traditional data processing. As IoT and mobile devices surge in popularity, it's also become synonymous with gathering, analyzing, and using huge amounts of digital information for business operations. People are producing more and more data, and datasets are becoming larger every day. Because of this, the cloud is the natural next step for data processing. The cloud's most important selling point is perhaps its inherent adaptability. Technology is constantly evolving and updating, so data processing systems need to be able to adapt quickly. The cloud can easily incorporate software updates and allows companies to combine all of their platforms into one system. While the cloud is already being used by major big data corporations, smaller companies can benefit from using the cloud as well. Because of their flexibility, cloud platforms provide smaller companies with an opportunity for growth. They can also be quite inexpensive, so cost is not necessarily an obstacle.
CLOUD COMPUTING AND OPPORTUNITIES
Cloud computing is a general term for anything that involves delivering hosted services over the internet. These services are broadly divided into three categories: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS).
There has been a continuous increase of computational power which has produced an overwhelming ﬂow of data. Big data is not only becoming more available but also more understandable to computers. Big data continues to attract a lot of attention from academia, industry as well as governments. App data integration and ad-hoc analytics also cover a big chunk of big data processing. For many organizations getting value from the increasing volumes of data remains a challenge. With the rapid growth of emerging applications like social network analysis, semantic Web analysis and bioinformatics network analysis, a variety of data to be processed continues to witness a quick increase. Effective management and analysis of large-scale data poses an interesting but critical challenge. The answer to these challenges is a shift to Cloud technology. Digital transformation initiatives, expansion of machine learning programs, and of late the growing cult of “work from home” have been facilitated by this shift to cloud computing. The main priorities for these initiatives and programs are improving data security and threat protection, optimizing customer experience, and predictive maintenance. Infrastructure complexity, decisions related to facilities, a growing demand for power and performance, the need for skilled people, and costs have been main considerations for this shift to cloud. Another reason of the shift to cloud is the ever-growing volume and diversity of data that companies are dealing with, whereby organizations focus on getting more value from their data, as they seek more advanced use cases and diversify their workloads. The benefits offered by cloud such as scalability, ease of implementation and management, the availability of the power needed for big data processing and the growing realization that cost-effective self-service platforms and elastic computing are readily available, have contributed greatly to this shift.
Cloud service providers (CSP) are companies that offer network services, infrastructure, or business applications in the cloud. The cloud services are hosted in a data center that can be accessed by companies or individuals using network connectivity. The large benefit of using a cloud service provider comes in efficiency and economies of scale. Rather than individuals and companies building their own infrastructure to support internal services and applications, the services can be purchased from the CSP, which provide the services to many customers from a shared infrastructure.
THE IT INDUSTRY OVERVIEW
The global information technology industry is on pace to reach $5.2 trillion in 2020, according to the research consultancy IDC. The enormity of the industry is a function of many of the trends discussed in this report. Economies, jobs, and personal lives are becoming more digital, more connected, and more automated. Waves of innovation build over time, powering the technology growth engine that appears to be on the cusp of another major step forward.
The United States is the largest tech market in the world, representing 32% of the total, or approximately $1.7 trillion for 2020. In the U.S., as well as in many other countries, the tech sector accounts for a significant portion of economic activity. CompTIA’s Cyberstates report reveals that the economic impact of the U.S. tech sector, measured as a percentage of gross domestic product, exceeds that of most other industries, including notable sectors such as retail, construction, and transportation.
Despite the size of the U.S. market, the majority of technology spending (68%) occurs beyond its borders. Spending is often correlated with factors such as population, GDP, and market maturity.
✔ CI/CD Tools & Pipeline Automation
✔ Integration with existing tools
✔ Containerization and Orchestration
✔ Build Once Deploy Many model
✔ Managed services for public & private cloud
✔ Monitoring the ongoing operations
✔ Automation experience
✔ ITIL support processes
✔ Enterprise Architecture and Roadmaps
✔ Cloud Readiness Assessment
✔ Infrastructure as Code
✔ Blueprints and DevOps Platform
✔ Brownfield Application assessments
✔ Migration strategies
✔ Technology Refresh
✔ Application Architecture