A snapshot of India’s growing IT industry

Tuesday, February 07, 2012 | Posted by: Fiona Cullinan
Categories: India, Thought leadership | Tags: India, technology, outsourcing, tech, IT, ICT, IT services, cloud computing, ICTE, Vasudev Majumdar, BPO, Tech Edge

UK technology companies seeking opportunities for growth in India and investors contemplating investing in the Indian Information and Communication Technology (ICTE) industry may be interested to read Tech Edge.

This new sector report from Grant Thornton India details the latest news, issues and opportunities in India’s fast-growing IT industry.

Download Tech Edge (PDF).

Some of the report’s key statistics highlight the sector’s potential for growth, for example:

• India’s business process outsourcing (BPO) industry is growing at rate of around 40% a year and is likely to capture more than half of the US$110 billion global offshoring market by 2010 – generating continued opportunities for vendors of IT products and services.
• By 2015, the Indian IT industry is expected to contribute 7% to annual GDP.
• The IT sector in India is estimated to aggregate revenues of US$88.1 billion this year.
• The IT industry is expected to grow by 16-18% in the 2012 financial year.
• The cloud computing market in India is still relatively small but it has been estimated that as much as 30% of applications could be provided via a hosting model.
• The new breed of netbooks (like Aakash) with lower price points is likely to provide a high growth segment.

Vasudev Majumdar, Associate Director, Corporate Finance, Grant Thornton UK, said:

“The Government of India recognises that provision of world-class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It anticipates that a significant part of the GDP would be contributed by the Information and Communication Technology (“ICTE”) sector.

“Recently, the think tank in the Indian Government has published a comprehensive and forward-looking telecommunications policy, which creates an enabling framework for development of this industry.

“In Grant Thornton’s view this draft policy document provides a compelling proposition for investment in this sector. Subsequently, Grant Thornton has compiled its own views on the ICTE sector in Tech Edge, which is a useful read for investors who are contemplating in investing in the Indian ICTE industry.”

Image: (CC) ericnvntr

You might also find these posts useful:

* Read the latest issue of India Watch news bulletin in conjunction with the LSE.
* The top 10 countries being strangled by red tape
* Lessons in international growth from British high fliers