India is the world’s largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 billion market. The industry employs about 10 million people. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy.
India’s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay of its USP in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centers in India.
The next phase of the technology boom in India will likely be in new technology areas like Internet of Things, cloud storage, autonomous driving vehicles, mobile payments and apps, artificial intelligence and streaming media content. There is tremendous potential for software companies, hardware companies, internet companies, information technology enabled service companies and consumer electronics companies. India’s rapidly expanding middle-class, infrastructure improvements in internet and mobile technology, relatively young population, favorable business environment and favorable government policies provide an ideal environment for mature and startup technology companies to thrive.
Facebook, Amazon, Google, Microsoft, Apple and Netflix all have significant investments in India. These companies understand the growth opportunities in India for many years to come.
Some Interesting Facts
- The Indian IT sector is expected to grow at a rate of 12-14 per cent for FY 2016-17
- The sector is expected triple its current annual revenue to reach US$ 350 billion by FY 2025
- Amazon India has 6 million Prime Members
- Netflix has 4.2 million subscribers in India
Cross Border Challenges in Technology
- Lack of Intelligence on Different Sectors in India
- Difficulty in Finding/Vetting Local Partners for Distribution, Marketing and Sales
- Finding Skilled and Qualified Software Engineers
- Lack of Entrepreneurship Culture in India
- Local Sourcing Rules
- Government Regulations and Bureaucracy
Services provided by India Global Advisors for the Technology Sector:
- Identifying Potential Opportunities
- Staffing for Software Development/Web Design/E-Commerce Projects
- Assisting Startups with expansion into India
- Identifying and Vetting Potential Partner Companies and Individuals in India
- Connecting with Venture Capitalists in India
- Assisting in Navigation Through the Myriad State and Federal Agencies in India
- Developing and Implementing Business Plans in India
- Cutting Costs Through Business Process Outsourcing
- Marketing of Products Through Appropriate Channels
Technology Success stories: