IBEF：2021年印度IT和BPM行業(yè)報(bào)告

IT&BPM

September2021Forupdatedinformation,pleasevisit

TableofContents

ExecutiveSummary3

AdvantageIndia

4

MarketOverview

6

RecentTrendsandStrategies

14

GrowthDriversandOpportunities

19

KeyIndustryContacts

29

Appendix

31

2

5

4

3

2

1

Executivesummary

1.LargecontributiontotheIndianeconomy

?TheITindustryaccountedfor8%ofIndia’sGDPin2020.

?India’sITindustryisexpectedtocontribute10%toIndia’sGDPby2025.

?AsofFY20,theITindustryemployed4.3millionpeople.

2.Stronggrowthopportunities

?AccordingtoNationalAssociationofSoftwareandServiceCompanies(Nasscom),theIndianITindustry’srevenueisestimatedtoreachUS$194billioninFY21,anincreaseof2.3%YoY.

?AsperasurveybyAmazonWebServices(2021),Indiaisexpectedtohaveninetimesmoredigitallyskilledworkersby2025.Thisindicatesthatatotalof~3.9billiondigitalskilltrainingswillbeexpectedby2025.Asof2021,digitallytrainedemployeesconstitute12%ofthecountry'sworkforce.

3.Exportandemploymentgrowth

?ExportsfromtheIndianITindustryareexpectedtoincreaseby1.9%toreachUS$150billioninFY21.

?TheBPMsectorinIndiacurrentlyemploys>1.4millionpeople,whileITandBPMtogetherhave>4.5millionworkers,asofFY21.

5.Acceleratingdemandforcloudanddigitaltransformation

?Thispushtowardscloudserviceshasboostedhyper-scaledatacentreinvestments,withglobalinvestmentsestimatedtoexceed~US$200billionannuallyby2025.Indiaisexpectedtogainasignificantshareintheglobalmarket,withthecountry'sinvestmentexpectedtohit~US$5billionannuallyby2025.

4.Mostlucrativesectorforinvestments

?ThecomputersoftwareandhardwaresectorinIndiaattractedcumulativeforeigndirectinvestment(FDI)inflowsworthUS$74.12billionbetweenApril

2000andJune2021.Thesectorranked2ndinFDIinflowsasperthedatareleasedbyDepartmentforPromotionofIndustryandInternalTrade(DPIIT).

?InFY21,computersoftwareandhardwaretoppedFDIinvestments,accountingfor44%shareofthetotalFDIinflowsofUS$

81.72billion.

Note:BPM-BusinessProcessManagement,*-IncludesdataforTCS,Infosys,Wipro,HCLTech

Source:NASSCOM,DPIIT,NewsArticles

3

AdvantageIndia

4

1

4

AdvantageIndia

2.GROWINGDEMAND

?Stronggrowthindemandforexportfromnewverticals.

?InFY22,thetopthreeIndianITcompanies,TCS,WiproandInfosys,areexpectedtooffer~1.05lakhjobopportunities,duetotheincreasingdemandfortalentandskill.

?India‘sITsectormarketisprojectedtoreachUS$100billionby2025.

?AccordingtoGartnerestimates,ITspendinginIndiaisestimatedtoreachUS$93billionin2021(7.3%YoYgrowth)andfurtherincreasetoUS$98.5billionin2022.

1.COMPETITIVEADVANTAGE

3.GLOBALFOOTPRINTS

?IndianITfirmshavedeliverycentresacrosstheworld.

?IT&BPMindustryiswelldiversifiedacrossverticalssuchasBFSI,telecomandretail.

?Increasingstrategicalliancebetweendomesticandinternationalplayerstodeliversolutionsacrosstheglobe.

4.POLICYSUPPORT

?InSeptember2021,theIndiangovernmentissuedGoodsandServicesTax(GST)Council’s

?InFY21,Indiarankedthirdworldwidewith608,000cloudexpertsacrossallverticals,includingtechnology.

?Indiahasalow-costadvantagebybeing5-6timesinexpensivethantheUS.

?ApreferreddestinationforIT&BPMintheworld,itcontinuestobealeaderintheglobalsourcingindustrywith52%marketshare(asofFY20)inservicesexportsfromthecountry.

2

3

clarificationonintermediariesfortheIT&BPMindustry,simplifyingtherefundprocess.

?InUnionBudget2021,theallocationforITandtelecomsectorstoodatRs.53,108crore(US$7.31billion).

?TheMinistryofElectronicsandInformationandTechnology(MeitY)hasapproved14eligibleapplicantsundertheproductionlinkedincentivescheme(PLI)forIThardware.

Note:SEZstandsforSpecialEconomicZone,BFSIstandsforBanking,FinancialServicesandInsurance,EstandsforEstimate,FstandsforForecast,AI*-ArtificialIntelligence

Source:Nasscom,Newssources

5

MARKETOVERVIEW

MarketOverview

6

Pre-1995

EvolutionoftheIndianITsector

1995-2000

?Byearly90s,US-based?WithincreasedcompaniesbegantoinvestmentinR&D,outsourceworkonlow-IndiabecameaproductcostandskilledtalentdevelopmentdestinationpoolinIndia

2000-05

?FirmsinIndiagrewintermsoftheirsizeandscopeofservicesofferedasmoreandmorewesterncompanies'setuptheirbasesinthecountry

2005-2016

?FirmsinIndiabecame

multinationalcompanieswithdeliverycentresacrosstheglobe

?India’sITsectorisataninflectionpoint,movingfromenterpriseservicingtoenterprisesolutions

2017

onwards

Indian

nearly

?TheUS$167billion

ITindustryemploys

fourmillionpeople.

among

?Indiaranksthird

globalstart-upecosystemswithmorethan5,300techstart-ups

?IndianIT&BPMindustryis

expectedtogrowtoUS$350billionby2025

?Indiajumpedfourplacestorankat48thpositionatthe

2020editionoftheGlobalInnovationIndex(GII).

Note:SAFTA-SouthAsianFreeTradeArea,ASEAN-AssociationofSoutheastAsianNations

Source:TechSciResearch

7

Marketsize:US$38billionin

FY20.MarketsizeofBPMindustrytoreachUS$54billionbyFY25.

About87%revenuecomes

fromtheexportmarket.

BPMhada19.79%shareof

theIT&BPMmarketrevenueinIndiainFY20.

Marketsize:US$34.39

billionduringFY19.

Over83.9%ofrevenue

comesfromexport.

Ithadaround19%revenue

shareintheIndianITspaceinFY19.

Marketsize:US$14.48

billioninFY19.

Thedomesticmarket

accountsforasignificantshare.

HardwareexportsfromIndia

wasestimatedtogrowat7-8%inFY19.^

SegmentsofIndia’sITsector

IT&BPMsector

Softwareproductsandengineeringservices

BusinessProcessManagement

ITservices

Hardware

MarketSize:US$97billion

inFY20.

Over81%revenuecomes

fromtheexportmarket.

BFSIcontinuestobethekey

verticalfortheITsector.

ITservicesaccountedfor

about50.50%oftheIT&BPMmarketrevenueinIndiainFY20.

Notes:^AsperElectronicsandComputerSoftwareExportPromotionCouncil

Source:NASSCOM,Newssources

8

TheIT&BPMindustry’srevenueisestimatedat~US$194billionin

FY21,anincreaseof2.3%YoY.

Thesectoristhelargestemployerwithintheprivatesector.InFY20,

theindustryadded1.38lakhnewemployees,takingthetotalemploymentto44.7lakh.

Thedomesticrevenue^oftheITindustryisestimatedatUS$45

billionandexportrevenueisestimatedatUS$150billioninFY21.

ThemarketsizeofIndia’sIT&BPMsectorisexpectedtogrowto

US$350billionby2025andBPMisexpectedtoaccountforUS$50-55billionoutofthetotalrevenue.

SpendingoninformationtechnologyinIndiaisexpectedtoreach

US$144billionin2023.

Outsourcingoflargetechnologycontractsbyclientsisexpectedto

acceleratethegrowthoftheindustryinFY20.

ThecloudmarketinIndiaisexpectedtogrowthree-foldtoUS$7.1

billionby2022withthehelpofgrowingadoptionofBigData,analytics,artificialintelligenceandInternetofThings(IoT)accordingtoCloudNextWaveofGrowthinIndiareport.

India’sdigitaleconomyisestimatedtoreachUS$1trillionby2025.

ArtificialIntelligence(AI)isexpectedtoboostIndia'sannualgrowth

rateby1.3%by2035:NITIAayog.

?InSeptember2020,NASSCOMFutureSkillsandMicrosoftcollaboratedtolaunchanationwideAIskillinginitiativetotrainonemillionstudentsinAItechnologyby2021.

Note:E-estimate,^IncludingHardware,#CAGRisfortotalofdomesticandexport

Source:NASSCOM,Gartner,NewsArticles

India’sITmarketsizegrowing

MarketsizeofITindustryinIndia(US$billion)

250

200

150

100

50

0

150

147

136

126

117

108

353741414445.0

#CAGR7.50%

FY16FY17FY18FY19FY20EFY21E

Domestic^Export

9

Sector-wisebreakupofexportrevenue(FY19)

23%

ITServices

BPM

54%

23%ER&Dandsoftware

products

StronggrowthinIT&BPMexports

Growthinexportrevenue(US$billion)

FY16

160.0

140.0

120.0

100.0

22.4

80.0

24.4

60.0

61.0

40.0

20.0

0.0

ITservices

CAGR8.05%

FY17

25.0

26

66.0

FY18

28.0

28

70.0

FY19

31.0

3174.0

BPM

SoftwareProductsandEngg.Services

TheexportsectorcrossedUS$147billioninrevenueinFY20,growingat8.1%.

ExportsroseataCAGRof8.05%duringFY16-FY19.

ExportofITserviceshasbeenthemajorcontributor,accountingfor54%oftotalITexport(includinghardware)duringFY19.

BPMandEngineeringandR&D(ER&D)andsoftwareproductsexportaccountedfor23%eachtototalITexportsduringFY19.ER&Dmarketis

expectedtogrowtoUS$42billionby2022fromUS$28billioncurrently.

AccordingtoSTPI(SoftwareTechnologyParkofIndia),softwareexportsbytheITcompaniesconnectedtoit,stoodatRs.1.20lakhcrore(US$

16.29billion)inthefirstquarterofFY22.

InAugust2021,theUnionMinisterofStateforElectronicsandInformationTechnology,Mr.RajeevChandrasekhar,announcedthattheITexport

targetissetatUS$400billionforMarch2022.Inaddition,thecentralgovernmentplanstofocusinareas,suchascybersecurity,hyper-scalecomputing,artificialintelligenceandblockchain.

Note:E-Estimated

Source:Nasscom,MakeinIndia,IDC

10

BFSIisakeybusinessverticalfortheIT&BPMindustry.Amajor

shareofrevenueofITmajorscomesfromtheBFSIbusinessvertical.

Adoptionofnewtechnologiesisexpectedtoaccelerategrowthofthe

BFSIvertical.TheneedforundertakinginvestmentinITwillalsoberequiredforgainingcompetitiveadvantageinsteadofsolelyreducingoperationalcosts.

InJuly2020,InfosyswonamultiyeardealworthUS$1.5billionfrom

investmentmanagementcompany—Vanguard.

InMay2021,InfosysenteredapartnershipwithMajesco,aNew

Jersey-basedcloudinsurancesoftwaresolutionsprovider,toenableinsurancecompaniestoaidindigitaladoptionandtransformationacrosstheinsurancevaluechain.

InJuly2021,TCSexpandeditsstrategicpartnershipwithRoyal

London,thelargestmutuallifeinsurance,pensionsandinvestmentcompanyintheUK,tohelpthelattertransformitspensionplatformestateanddelivermarket-leadingservicestomembersandcustomers.

InAugust2021,TataConsultancyServiceswasadjudgedaleaderin

theNelsonHallNEATforCXServicesinBanking,FinancialServicesandInsurance(BFSI).

BFSI-akeybusinessverticalforIT&BPMindustry

RevenueshareofITmajorsfromBFSI(FY20)

3500%

31.30%

30.00%

29.77%

29.70%

27.60%

25.00%

46%

20.00%

.

30%

20

15.00%

10.00%

5.00%

0.00%

TechMahindra15

Mindtree

Wipro

TCS

Infosys^

L&TInfotech*

Note:BFSI-Banking,FinancialServicesandInsurance,mentionedfiguresareforITandBPMonlyanddonotincludeengineeringservicesandhardwareexports,^Forthe‘FinancialServices’vertical,*Sumof‘BFS’and‘Insurance’verticals

Source:NASSCOMQuarterlyReview,MinistryofElectronicsandITAnnualReport,CompanyFinancialResultsandFactsheets,NewsArticles

11

UShastraditionallybeenthebiggestimporterofIndianITexportsas

itabsorbedover62%ofIndianIT&BPMexportduringFY19.

Non-US-UKcountriesaccountedforjust21%ofthetotalIndianIT&

BPMexportduringFY19.

AsofFY19,USandUKweretheleadingcustomermarketswitha

combinedshareofnearly80%.However,thereisagrowingdemandfromAPAC,LatinAmericaandMiddleEastAsiaregions.

Beingthelow-costexporterofITservices,Indiaisgoingtoattract

moremarketsinotherregionsinthesamemannerittappedtheUSmarket.

Withover62%share,usismajorimporterofITservices

GeographicbreakupofexportrevenueinFY19(%)

2

8

11

17

62

USUKEurope(ex-UK)AsiaRoW

Note:ROWisRestOftheWorld,APACisAsiaPacific

Source:Nasscom,DepartmentofElectronicsandITAnnualReport

12

IT&BPMsectordominatedbylargeplayers

2019

Category

Numberofplayers

Percentageoftotalexportrevenue

Percentageoftotalemployees

WorkFocus

Large

11

47-50%

~35-38%

FullyintegratedplayersofferingcompleterangeofservicesLargescaleoperationsandinfrastructure

Presenceinover60countries

Medium

120-150

32-35%

~28-30%

Mid-tierIndianandMNCfirmsofferingservicesinmultiple

verticals

Dedicatedcaptivecentres

Nearshoreandoffshorepresenceinmorethan30-35countries

Emerging

~1,000-

1,200

9-10%

~15-20%

PlayersofferingnicheIT&BPMservicesDedicatedcaptivesofferingnicheservicesExpandingfocustowardssubFortune500/1,000firms

Small

~15,000

9-10%

~15-18%

Smallplayersfocussingonspecificnichesineitherservicesor

verticals

IncludesIndianprovidersandsmallnichecaptives

Source:Nasscom

13

RECENTTRENDSANDSTRATEGIES

14

RecentTrendsandStrategies

14

Notabletrends…(1/3)

1

Globaldeliverymodel

IndiansoftwareproductindustryisexpectedtoreachUS$100billionby2025.Indiancompaniesarefocusingtoinvest

internationallytoexpandglobalfootprintandenhancetheirglobaldeliverycentres.

Inlinewiththis,inFebruary2021,TataConsultancyServicesannouncedtorecruit~1,500technologyemployeesacrosstheUK

overthenextyear.ThedevelopmentwouldbuildcapabilitiesforTCStodeliverefficientlytotheUKcustomers.

2

Indiatobecomethedataannotationandlabellinghub

ThedataannotationmarketinIndiastoodat~US$250millioninFY20,ofwhichtheUSmarketcontributed~60%totheoverall

value.Themarketisexpectedtoreach~US$7billionby2030duetoaccelerateddomesticdemandforAI.

3

Newtechnologies

Disruptivetechnologiessuchascloudcomputing,socialmediaanddataanalyticsareofferingnewavenuesofgrowthacross

verticalsforITcompanies.

TheSMAC(social,mobility,analytics,cloud)marketisexpectedtoreachUS$225billionby2020.

InJuly2021,TataTechnologiespartneredwithStratasys,a3Dprintingtechnologycompany,toprovideadvancedadditive

manufacturingtechnologiestotheIndianmanufacturingecosystem.

InJune2021,InfosysannouncedacollaborationwithArchrock,Inc.,aleadingproviderofnaturalgascompressionservicesinthe

US,tointegratedigitaltechnologiesandmobiletoolsforitsfieldservicetechnicians.

InMay2021,HCLTechnologies(HCL)announcedamulti-yearcontractwithHitachiABBPowerGridstobuildanewgreenfield

digitalfoundationaspartofaglobaltransformationprogramme.Throughthisengagement,HCLwillhelpHitachiABBPowerGridsestablishanew,efficientandmodernindependentITorganisation.

15

CloudPlatform

Keyplayersarefocussingondifferentiatedcloudproducts/platformstoavailacompetitiveadvantageoverotherindustryplayers.InJuly2021,WiprointroducedWiproFullStrideCloudServicesandannouncedaplantoinvestUS$1billionincloudtechnologies,

acquisitions,partnershipsandothercapabilities,overthenextthreeyears.

OnJanuary13,2021,TCSintroducedacustomisedversionof‘TCSCloudExponence’onMicrosoftAzure,itsflagshipcloud

managementandorchestrationplatform,tooffersmartmanagedservicesinhybridcloudenvironments.

Largeplayersgainingadvantage

Largeplayerswithawiderangeofcapabilitiesaregaininggroundastheymovefrombeingsimplemaintenanceproviderstofull-

serviceplayers,offeringinfrastructure,systemintegrationandconsultingservices.

Ofthetotalrevenue,about80%iscontributedby200largeandmediumplayers.

Expansion

InAugust2021,Wiprolaunched@nowStudioinTexas,toexpanditsdigitalandcyberdefensecentre.

InJuly2021,TCSannouncedaplantoexpanditsgraduatetrainingprogrammeandemploymentopportunitiesinMalaysia.InJuly2021,TCSannouncedplanstoexpandinArizona,byinvesting>US$300millionby2026andrecruiting>220employeesby

2023.

Partnership

InAugust2021,SAPIndiaandMicrosoftannouncedtheintroductionofTechSaksham,acollaborativeskillinginitiativeaimedat

enablingyoungwomen(fromunderprivilegedregions)topursuecareersintechnology.62,000womenstudentswillbetrainedinartificialintelligence(AI),cloudcomputing,webdesignanddigitalmarketingasaresultofthiscollaboration.

InAugust2021,WackerChemieAG,aGermanmultinationalchemicalbusiness,hasinkedafive-year,end-to-endITtransformation

servicescontractwithHCLTechnologies(HCL)tobuildamoderniseddigitalworkplaceandimproveservicequality.

InJuly2021,TCSenteredstrategicpartnershipwithSonyLIV,anOTTstreamingplatform,tocreateaninnovativebusinessmodel

thatwillbeenabledbydigitaltechnologiestoenhancecustomerexperienceandpavethepathtofuturegrowth.

Notabletrends…(2/3)

4

5

6

7

16

Mostlucrativesectorforinvestments

ThecomputersoftwareandhardwaresectorinIndiaattractedcumulativeFDIinflowsworthUS$74.12billionbetweenApril2000

andJune2021,accordingtothedatareleasedbyDepartmentforPromotionofIndustryandInternalTrade(DPIIT).

Deploymentto

InJuly2021,TCS

enablesenterprises

InMay2021,IBM

(IISc),Bangalore,quantumcomputing

InApril2021,Tata

buildingandgrowthmarketsin

Government’sInitiative

InSeptember2021,theMinistryofElectronicsandInformationTechnology(MeitY)organisedaworkshopunderthethemeof

‘ConnectingallIndians’,topromotepublicandprivatestakeholders’interestinthecountryandexpandinternetaccesstoremoteareas.

InSeptember2021,theIndiangovernmentlaunchedtheMeghalayaEnterpriseArchitectureProject(MeghEA),toboostservice

deliveryandgovernanceinthestatebyleveragingdigitaltechnologies,tomakeMeghalayaahigh-incomestateby2030.

InSeptember2021,theIndiangovernmentlaunchedPhaseIIofVisvesvarayaPhDSchemetoencourageresearchin42emerging

technologiesinInformationTechnology(IT),ElectronicsSystemDesign&Manufacturing(ESDM)andInformationTechnologyEnabledServices(ITES).

InSeptember2021,theIndiangovernmentinauguratedfiveNationalInstituteofElectronics&InformationTechnology(NIELIT)

Centres,inthreeNorthEasternstatestoboostavailabilityoftrainingcentresandemploymentopportunities.

Notabletrends…(3/3)

8

9

amoderncloud

launchedJile5.0,akeyreleaseofitsEnterpriseAgile,on-the-cloudservices,planninganddeliverytoolthattomeetthelarge-scaledevelopmentneedsofmultipledistributedteams.

collaboratedwith11top-tieracademicinstitutions,includingIITKharagpurandtheIndianInstituteofSciencetoenable‘over-the-cloud’accesstoitsquantumsystemstoboostadvancedtrainingandresearchintheareaof

onsultancyServicesannouncedthatWavin,aNetherlands-basedglobalinnovativesolutionsproviderforthe

infrastructureindustries,hassuccessfullyimplementedtheTCSERPoncloudplatformtoachieveexpansioninnewIndonesiaandIndia.

10

17

1

5

2

4

4.

?

3

Strategiesadopted

1.MovementtoSMACanddigitalspace

?SMACistakingsignificantleaps.

?Companiesaregettingintothisfieldbyofferingbigdataservices,whichprovidesclientswithbetterinsightsforfuturecases.

?InApril2021,WiproannouncedtheimplementationofadigitalexperienceplatformforBristolWatertomodernizecriticalinfrastructure.

?InFebruary2021,YottaInfrastructureannouncedthatbyleveragingitsstate-of-the-artYottaNM1datacentreatNaviMumbai,EssarCapitalLtd.,withinvestmentsworth~US$14billion,hasundertakenalarge-scaledigitaltransformationinitiative.

2.M&A

?InMay2021,InfosysannouncedadefinitiveagreementtoacquireGuideVision,aServiceNowElitePartnerinEurope.

?InApril2021,WiprosignedanagreementtoacquireAmpion,anAustralia-basedproviderofqualityengineeringservices,cybersecurityandDevOps.

5.Productandpricingdifferentiation

?MostoftheITcompanieshavebeenofferingsimilarproductsandservicestotheirclients.

?Thecompaniesareworkingtowardsproductdifferentiationthroughvariousotherservicesbybrandingthemselves,forexample,BuildingTomorrow'sEnterprisebyInfosys.

?IndianITfirmshavestartedtoadoptpricingstrategiestocompetewithGlobalfirmslikeIBMandAccenture.

Productlaunch

InApril2021,CyientlaunchedINTELLICYIENTsuiteofIndustry4.0solutionstoenabledigitaltransformationforvariousindustriessuchasmanufacturing,industrial,aerospace,automotiveoff-highway,

3.PromotionofR&D

?CompaniesareinvestingalotinR&Dandtrainingemployeestocreateanefficientworkforce,enhancingproductivityandquality.

?R&Dformsasignificantportionofcompanies’expenses,whichiscriticalwhenmarginsareinpressure,topromoteinnovationsinthechanginglandscape.

infrastructureandmining&naturalresources.

?InAugust2021,TCSlaunchednewGoogleCloudGaragesfortheirenterpriseclientele.

?InJuly2021,TCSlaunchedJile5.0,aSaaS-basedenterpriseagiletool,withimprovedportfoliocapabilities.

18

GROWTHDRIVERS

19

GrowthDriversandOpportunities

19

5

GrowthDrivers

4

3

1

ITsectortobedrivenbystrongdemandandIndianexpertise

1.CombatCyber-security

?India’sMinistryofHomeAffairsandtheNationalCriticalInformationInfrastructureProtectionCentreareworkingonanewnationalstrategytostrengthenthecountry’scybersecurityamidallegationsthatChineseintrusionsmayhaveaffectedoperationsatakeystockexchangeandsupplyofelectricityinMumbai.

?InSeptember2021,theIndiangovernmentannouncedaplantobuildacyberlabforthe‘OnlineCapacityBuildingProgrammeonCrimeInvestigation,CyberLawandDigitalForensics’tostrengthencybersecuritycapabilities.

2.Talentpool

?NASSCOMhasestimatedthatthedigitaltalentpoolinIndianaislikelytocross1.17millioninFY21,increaseof32%YoY.

?Strongmixofyoungandexperiencedprofessionals.

?Asmorecompaniesundergodigitaltransformation,in-demandITrolesin2021willincludepositionsfocusedonadvancedtechnologiessuchasInternetofThings,artificialintelligence,augmentedandvirtualreality.

2

3.Publiccloudmarket

?PubliccloudmarketinIndiastoodatRs.

170billion(US$2.32billion)inFY2020,increasingataCAGRof~30%toreachRs.

630billion(US$8.61billionbyFY2025.

5.Policysupport

?TaxholidaysforSTPIandSEZs.

?Moreliberalsystemforraisingcapital,seedmoneyandeaseofdoingbusiness.

?GovernmentofIndiaannouncedplanstolaunchanationalprogrammeonAI*andsettingupofaNationalAI*portal.

?InBudget2021,thegovernmenthasallocatedRs.53,108crore(US$7.31billion)totheITandtelecomsector.

4.Infrastructure

?InfrastructuresoftwarerevenueinIndiaisforecasterdtoreachUS$4.6billionin2021,anincreaseof12%YoY,drivenbyrisingdemandforsecurity-as-a-serviceofferingsanddetectionandresponsecapabilities.

Note:STPIstandsforSoftwareTechnologyParkofIndia,SEZstandsforSpecialEconomicZone,ICT-Informationandcommunicationstechnology,IT&BPM-InformationTechnologyBusinessProcessManagement,AI*-ArtificialIntelligence

Source:Nasscom,NewsArticles

20

ExportsfromtheIndianITindustryareexpectedtoincreaseby

1.9%toreachUS$150billioninFY21.

ExportrevenuefromtheindustrygrewataCAGRof8.01%toUS$

147billioninFY20EfromUS$108billioninFY16.

InFY20,IT&BPMindustryexportrevenuecrossedUS$147billion

atagrowthof8.1%.

InFY19,exportfromITandITEnabledServices(ITeS)registereda

growthof17%toreachRs.1.09lakhcrore(US$15.63billion)inTelangana.

ExportstoremainrobustasglobalITindustrymaintainsgrowth

ExportrevenuefromITindustry(US$billion)

160

140

120

100

80

60

40

20

0

150

CAGR8.01%

147

136

126

117

108

FY16FY17FY18FY19FY20EFY21E

Note:E-Estimate

Source:Nasscom,MediaSources

21

Acceleratingdemandforcloudtobeamajorgrowthdriver

Withdigitaltransformationacceleratingacrosssectors,thepandemic

hasdrivendemandforcloudservicesworldwide,andtheInternethasbecomealifelineforpeoplebothforworkandentertainment.Thismovetowardscloudserviceshasacceleratedhyper-scaledatacentreinvestments,withglobalinvestmentsestimatedtoexceed~US$200billionperyearby2025.

Thedemandforcloudtechnologyprofessionalsisexpectedtoreach~2

mil