The Technology Sector in India: Strategic Review 2020

MEGATRENDS
SHAPING
FUTURE TECH
OPPORTUNITIES
71
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with over 2,800 members. NASSCOM Research is the in-house research and analytics arm of NASSCOM generating
insights and driving thought leadership for today’s business leaders and entrepreneurs to strengthen India’s position as
a hub for digital technologies and innovation.

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ii
 Megatrends 2030
Most impactful global transformations
during 2020-2030
The coming decade, 2020-2030, is destined to witness
certain never-before-seen changes, man-made and
natural, either as an aggregation of similar, but
distributed and localized tipping-point events, or as
massive global-scale transformations. Common among
them will be the unprecedented scale and speed
at which these events will impact mankind and the
associated enterprises.
The decade of 2020-2030 will witness non-linear
transformation in five major areas of global impact
– Asian Economic Eminence, Mass Urbanization and
Hyper-Personalization, Environmental Sustainability
Stress, Data-Led Economy, and Disrupted Future
of Work.
Interdependencies between these trends, coupled
with the speed of change, will lead to dynamically-
shifting states, with limited efficacy of established
forecasting methods to detect and prepare
response plans. Significance of real-time, location-
contextualized, transparent set of actions will lead to
newer applications executed using a combination of
Foundational and Advanced technologies, maturing
further in what will be remembered as the “Techade”.
While the world is estimated to grow to nearly 8.6
billion people at its slowest decadal growth rate of 7.3
per cent, world GDP will likely breach USD 270 trillion
at its fastest decadal growth rate of 6.7 per cent, more
than doubling the 2010-2020 decadal growth rate of
3.2 per cent. At a minimum, 700 million people and
USD 40 trillion worth of personal disposable income
will be newly added in the next decade.
As each megatrend unravels at its distinct decadal
pace, some –environmental sustainability stress
resulting from faster-than-past consumption growth
of global, and in particular Asian middle-class, and
unplanned urbanization – will have a strong balancing
Note: * Advanced Asia includes Australia, Japan, New Zealand, Korea, Singapore, Hong Kong SAR, Taiwan Province of China.
#
Emerging Asia includes China, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
72
effect to the accelerating pace of growth created by
others – data-led business boost and technology-
enabled work productivity and consumption – with
the possibility of creating sporadic swings in global
economic, social, and cultural states.
Asian Economic Eminence
Home to the largest global aggregation of “new”
middle-class consumers – digital-native, mobile-first,
and decisively individualistic in their consumption
preferences – Emerging Asia#, buoyed by conducive
and increasing trade imports from within Advanced
Asia*, and the rapidly expanding discretionary
consumption base – will evolve into a voice of equity
in global economic policies and business strategies.
• 80 per cent or more urbanites in developing
economies
• 50 per cent of global GDP
• Half of Fortune 500 companies likely planning to
shift base
Yet, highly variant and unconventional consumption
behaviors across demographic, social and cultural
segments in Asia will force frontlines to constantly
redefine target segments and strategies. Both
enterprises and governments will need to respond
with extreme agility, supported by advanced analytics
and intelligence insights.
 
Mass Urbanization and Hyper-
Personalization
The decade to 2030 will witness a new form of
urbanization – mass urbanization – wherein nearly
two-thirds of the world population will reside in small
cities with population of less than 500,000 people.
This segment of cities will see fastest growth in

numbers and per capita disposable income, higher
than the growing megacities with greater than 10
million population. Megacities, on the other hand,
will witness economic growth of non-linear
proportions, each becoming an average economy
worth USD 3 trillion, sustaining 50 per cent of global
GDP within them.
UN indicates that urbanization in the next decade will
occur through a rapid agglomeration of the urban-
rural physical spaces, faster than the growth of the
constituent urban population, indicating an “urban
sprawl“. These disjoint clusters will, in effect, lead
to a new phenomenon of hyper-localization within
the larger city economy, with clusters representing
unique consumer genres, consumption behaviors,
and spending patterns. Incumbent brands and private
labels will find opportunities in equity when trying to
carve their niche space.
Downside of this scale of bottoms-up urbanization
will manifest in unplanned and potentially resource-
damaging growth. Globally, governments have worked
towards Smart Cities at a mission-scale, however, USD
26 trillion of smart city infrastructure investments
are required just within Asia. If unplanned, this wave
of urbanization has the potential to derail the UN
Development Program’s Sustainable Development
Goals (SDGs) for 2030 leading to environmental
degradation at generationally irreversible levels.
Environmental Sustainability Stress
Climate change, urbanization, natural resource
denigration and shrinking arable land will push more
than 3 bn. people to the verge of severe food and
water scarcity, per UN advisory.
Of the 17 SDGs that UNDP Agenda 2030 continues
to track, for commitment and performance across
all 193 signatory countries, the goals associated with
energy consumption (93 per cent), climate action (85
per cent), water scarcity (82 per cent), food availability
(75 per cent), and waste generation (72 per cent)
have registered highest gap-to-goal on the basis of
definitive responses from participating countries.
Technology could play a pivotal role in reducing
the sustainability strain, and the cost of doing so,
currently pegged at nearly USD 1.7 Tn, or 1-2 per
cent of global GDP. ICT data centers are the third-
largest energy consumers, after US and China. Data
center decentralization, IoT and Edge-led localized
data handling, and faster analytical computations of
large-scale data using deep learning technologies will
improve cost efficiency per digital computation.
The Technology Sector in India: Strategic Review 2020
Data-Led Economy
Global data has doubled every three years and is on
track to reach close to 175 Zettabytes (ZBs) by 2030.
One-thirds of it will be generated real-time, and will
be critical enough to need instantaneous analysis and
decision-making utilization in-situ.
Nearly two-thirds of the 175 ZBs will be machine-
to-machine, a scale of machine data creation,
transmission and analysis that will spawn an entire
data aggregation industry at the confluence of zero
asset, zero data ownership, zero storage investments
and pure “data cross-docking” or data barter.
Potential value of such data-sharing may take time to
unfold, but the impact will be far reaching in predictive
equipment performance and maintenance, first-pass
success analysis, and input-based output prescriptions.
If Edge IoT and Edge Analytics are implemented to
exploit this opportunity, it will save significant costs in
data transmission, storage, and post-fact analysis.
A contrasting data barter opportunity will emerge with
end consumers assuming complete control of their
personal data – captured through personal wearables,
home automation equipment, autonomous vehicles,
and smart workspaces. Businesses and governments
will have the opportunity to device “smart” rules to
buy data for contextual needs, creating a consumer
data-led economy.
Disrupted Future of Work
Factors that will impact the future of work will
transcend immediate organizational needs and
individual personality types, to include more global
drivers, such as:
• Tectonic shifts in demographic constitution due to
convergence of five generations of workers – Baby
Boomers, Gen X, Gen Y, Millennials, and Gen Z –
the latter constituting nearly 36 per cent of the
global workforce by 2030
• Technology-enabled workspaces that enable
augmented working, skills-as-a-service work
culture
• Co-working with machines where nearly 42 per
cent of effort hours are delivered by machines.
• Massive re-skilling to higher-order skills to
manage autonomous worker output and plan
next-stage work automation.
• Environmentally conscious initiatives by
enterprises that will mobilize the workforce across
geographies on common sustainability missions.
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 NASSCOM surveyed producers and consumers of technology products and services to understand their views
on the identified megatrends. While consumers would like more sustainability focus, producers identify more
opportunities with Asia’s economic rise, technology-led work shifts, and data-led economy.

Producer – consumer prioritization of megatrends

% respondents

17%
Asian Economic Eminence
23%

17%
Disrupted Future of Work
22%

19%
Data-Led Economy
22%

33%
Environmental Sustainability Stress
18%

14% Consumers
Mass Urbanization and Hyper-Personalization
15% Producers

Source: ASEAN, Financial Times, HP, IMF, McKinsey Global Institute, Standard Chartered Bank, USDA, WEF, World Bank, NASSCOM
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 The Technology Sector in India: Strategic Review 2020

ASIAN ECONOMIC EMINENCE

Middle-class led consumerism

Asia-Pacific will add 2 billion “new” entrants to global middle-class and high-income population by 2030 –
1.5 billion of them urban Asians – having average annual disposable incomes of USD 41,000 and the potential to
increase annual global consumption by an additional USD 7.5 trillion in 2030.

Rising Asian middle-class population and consumption

Per cent of global middle-class population, 2015-2030

733
354 13.5%
6.5%
1.51% 3492
2.73%
64.5%
5.4%
9%
724
24%
335
11% 1380
45.5%
192
285 6.3%
5.3%
2.42%

285
9.5% 114
4%
335
6.2%
0.98%

212
4%
4.12% 2015 middle-class population
Per cent of global
6-7%

2030 middle-class population per cent of global

Per cent growth in annual consumption spend, 2018
+50 per cent growth over 2018 annual consumption spend, by 2030

Source: News Articles, NASSCOM

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 ASIAN ECONOMIC EMINENCE
Middle-class led consumerism

Key macro-economic trends indicating a rising Asia: 2015 vs 2030+

2015-2019 2030-2035

APAC USD 36 tn. – 42% of global GDP USD 124 tn. – 50% of global GDP of
GDP of USD 87 tn. USD 247 tn.

Minimum USD 8,000 annually,

GDP PER for urbanites in cities north of
8X – USD 68,018 annually, slightly
CAPITA >5 mn.
higher than global USD 68,009

ASIAN URBAN 1.8 bn. – 50% of 3.5 bn. 3.3 bn. – 60% of 5.5 bn. globally,
POPULATION global urbanites 1.5 bn. “new” urban Asians

MIDDLE-CLASS USD 16 tn. – 36% of global USD 11 tn. – 42% of “new” global
CONSUMPTION USD 44 tn. total consumption USD 25 tn. middle-class spend

Asian share of global trade – 33% Asian share of global trade – 40%
GLOBAL Asian share of global capital flows -
Asian share of global capital flows - 23%
TRADE 47-60%

SPEND 5.4% annual consumption

9% annual consumption rate through
PROPENSITY rate in 2018
2030

Source: WEF, IMF, World Bank, ASEAN, HP, McKinsey Global Institute, Financial Times, Standard Chartered Bank
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 The Technology Sector in India: Strategic Review 2020

ASIAN ECONOMIC EMINENCE

Enterprise – end-consumer interactions

Fifty percent of the 1 bn. new consumers added in Asia by 2030 will enter middle-class and high-income
segments with a minimum annual USD 35,000 income - a level defined by UN to classify the “Haves” with the
ability to fulfill basic needs, and further, the ability to spend on discretionary needs. Fast-maturing start-up
ecosystem, FT500 incumbents rebasing in Asia, and larger number of Asian companies entering the FT Global
500 club are strong indicative trends suggesting a technology and personalization-led Asian consumption boom.

Asian Consumption Trends 2030

Enterprise – Consumer Interactions

64% 142%
Asian wealthy will spend growth in HNI wealth between
16 of 25 new FT Global more than their developed 2015-2025, highest globally
500 firms in 2019 were Asian nation counterparts

50% 1.9 bn.

FT500 firms will shift to Active mobile users,
Asia by 2030 Data-led services opportunities growing at 13% CAGR

Local HNI investors and

70% Advanced* Asia to invest in 74%
Asian VC funding is Emerging Asia – a circular Asia’s tourism revenue
Intraregional growth economy generated by Asians in 2019

71% to achieve business

efficiencies 81% 53% USD 2 tn. of mobile
Asian enterprises Asian consumers are commerce in Asia
will have adopted AI mobile-first digital through 2023
62% to improve products/ solutions consumers
services

AI and deep learning technologies will enable personalized and

real-time consumption push

35% 80%
150 Asian Unicorns of New consumers with USD
430 global since 2010 35,000 minimum income

By 2025, 20 per cent of revenue growth will come from “white space” offerings, which combine digital
services from previously unlinked industries

* Advanced Asia includes Australia, Japan, New Zealand, Korea, Singapore, Hong Kong SAR, Taiwan Province of China.
Source: ADB, APAC Trends, Fortune, HP, Hong Kong Trade Development Council, IDC, McKinsey Global Institute, Visual Capitalist, WEF
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 ASIAN ECONOMIC EMINENCE
Emerging technology opportunities

While Asian markets will lag developed economies’ consumption of data-based services,
successful solutions will address vernacular, cultural, and hyper-local segmentations using
advanced and foundational technologies.

Asian Consumption Solution Components Digital Technologies and

Opportunities Use Cases

Rise of Mass  Segment of One analysis  AI: Individual behavioral profiling and
Individualists  Non-static customer segmentation analytics
 Real-time as-a-service  IoT: Localized real-time unstructured data
for JIT solutions

Data Barter  Public/private data exchanges  AI: Self-learning algorithms to build risk and
Economy  Data quality assessment rules quality-led data valuation
 Digital contracts  Blockchain: Open data-sharing contracts
based on trust
 Cybersecurity: Edge to enable location-
specific security rules activation for in-transit
data sharing

Bipolar Asian  Integrated online platforms for
Consumers private label goods
 Consumer segmentation beyond
income groups to include
preference based categorization
 AI: Contextual analysis based on individual
life-event, location, time of day, purchase
trends, product/service reviews and
category/brand switching behavior to
“prescribe” premium or value-for-money

Highly-Dense,  Clustering on the basis of existing  AI: Models that correlate macroeconomic
Cultural Hyper- local economy parameters with multiple hyperlocal
Localization  Intra-cluster trade, mobility, and economic factors – local trade, people and
exchanges goods flows, residential and cultural clusters
 IoT: Connected, sustainable living and
everything-as-a-service model with real-
time solutions
 Blockchain: Risk-adjusted financial inclusion
 Cloud: Foundational massive-scale data
platforms

Cross-Demographic  Engineer-to-order digital production  AI: High-income behavioral analysis; hyper-

Consumption for premium buyers personal customer segments for mass
Dividend  Enterprises to build flexible “push” middle-class
techniques to address hyper-
personal consumption

Source: HP, McKinsey Global Institute, WEF, NASSCOM

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 The Technology Sector in India: Strategic Review 2020

MASS URBANIZATION AND

HYPER-PERSONALIZATION
Global and regional trends

Urbanization will continue apace through 2030, but with a significant departure from previous formats.
Megacities will continue to expand, and will contribute 50 per cent of the global GDP by 2030. Yet, the fastest
growth in urban population and its consumption capability will occur in cities with sub-1 million population.

Intra-regional economic competition resulting from hyper-local opportunities, as well as, from the rising ability
to take local labels and innovations to the world stage, will create new business models and the need for a new
world business order.

Degree of urbanization
Percent of global urban population, 2019

82% 74%
78% 68%
54% 49% 43%

North Latin Europe Oceania Worldwide Asia Africa

America America &
Caribbean

Emerging global urbanization trends 2030

2020 8.5 bn.

World Population
7.8 bn. 6 bn.
World Urban Population
4.3 bn.
43
World Megacities*
33

2.3 bn. Asian Urban Population 3.6 bn.

19 Asian Megacities 31

* Megacities are urban areas with population exceeding 10 million

Source: European Union, Statista, United Nations data set
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 MASS URBANIZATION AND HYPER-PERSONALIZATION
Urbanization strain in the developing world

Rise of Urban Asia

2030 Indicators

Asia will account for two-thirds of the net By 2030, disposable income is expected to
Disposable Income global increase in disposable income double across all* urban cities

4 out of 10 households (40 per cent) India, Indonesia, Thailand, and Philippines
Target Addressable are expected to move into the “Haves”# fastest growing income and consumption
Market category pools in Asia

Many countries have started national “Digital Thailand”, “Digital India”, “Taza Koom”
Impact of Disruptive
initiatives to digitize their economies in Kyrgyz Republic and “Digital Azerbaijan” are
Technologies emerging examples

Urbanization drivers and stress points

Green consumption, urban attractiveness and sustainable development depends on urban management in low-
middle income countries where the pace of urbanization is projected to be the fastest.

Drivers Stress Points

• 2X rise in middle-class income creates mass
immigration to urban areas
• Demographic shift in these areas of
consumption – more millennials and Gen Z in
Asia and Africa
• Small and medium-sized cities will see faster
urbanization
• With only 49 per cent of urbanization, Asia hosts
54 per cent of world’s urban population
• Urban population will grow faster in the
developing world – 90 per cent urbanites in Asia
by 2030
• Rapid urbanization to further stress available
basic amenities in developing Asia

Desired Outcomes from Planned Urbanization

Green Urban
Job Creation
Consumption Attractiveness

* Megacities are urban areas with population >10 million; large cities with >5 million, medium with >1 million and small with
sub-1 million population
#
“Haves” are classified by UN as individuals with a minimum USD 35,000 per year income
Source: European Union, Statista, UN
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 The Technology Sector in India: Strategic Review 2020

Mass Urbanization and Hyper-Personalization

Global SWOT Analysis

STRENGTHS WEAKNESSES

• Mainstreaming of digital • Weaknesses of the planning

economy system driven by skewed
• Growth of commercial activities political goals and inadequate
within intra-regional local and incomplete policy
clusters, and between globally formulation
distant megacities • Irreversibly missed
• Strengthening social and cultural environmental sustainability
integration targets
• Efficiency of mass services with • Rise in spending constraints
use of emerging technologies of public coffers limiting
affordability of basic services
• Innovative ways to improve
transparent allocation and
utilization of scarce resources

OPPORTUNITIES THREATS

• Ongoing urbanization and • Intensive and unplanned

infrastructure drive will urban growth will rid
provide major opportunities masses of necessary and
for foreign investments in sufficient access to food,
landlocked provinces water, and clean air
• Infrastructure development, • Infrastructure provisioning
provisioning of services will kill green zones,
through technology, managing leading to unpredictable
supply chains for speedy and high-intensity natural
business will generate large calamities
number of jobs, and create a • Urbanization rates higher
need for mass upskilling than job creation and
• New business models and services provisioning rates
new ways of doing incumbent will unleash massive social
business will emerge unrest

Source: European Union, Statista, UN

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 MASS URBANIZATION AND HYPER-PERSONALIZATION
Emerging technology opportunities

Rapidly urbanizing households in emerging markets are creating new businesses based on emerging digital
technologies. Cities of all sizes are planning use cases that will deliver maximum impact using technological
interventions. Particularly, urban planning, smart living based on everything-as-a-service, equitable growth
opportunities based on trust and transparency, and more sustainable use of resources, will become possible.

Urbanization Solution Components Digital Technologies and Use Cases

Opportunities

Tech-Led  Growing share of renewable  IoT: Improved energy response through real-time data from
Resource energy sensors, managed through smart devices
 Energy savings  AI: Prediction of controllable losses, resource quality and
Protection and  Top soil protection productivity classification
Utilization  Efficient and end-to-end visible
supply chains

Eliminated  Address the inequality of  IoT: Embedded minute IoT sensors in jewelries track pregnant
Opportunity opportunities – economic, women’s vitals, addressing maternal mortality, , specially in
social and environmental remote areas
Inequality  3D Printing: Reuse end-of-life materials to create composite
input materials for 3D printed parts
 Robotics: Automation and robotics will assist in learning
without life risks, improving employability of a massive, young
skill base

Organized  Energy access  IoT, AI, and Blockchain: Smart grid systems to enhance access
Megalopolises  Smart cities and urban to clean energy from renewable sources, further creating
infrastructure incentives for back-to-grid contributions
 IoT and AI: Advanced, real-time, and predictive analytics on
sensor data will warn about black-swan climate risks, while
prescribing shifts in economic activities based on long-term
climatic changes

Self-Assisted  Healthcare on demand  AI: Mining patient biological data and scientific literature for
Healthcare  Personalised and connected drug discovery and precision medicine
health  IoT: Enabling outcome based care, anywhere
 Treatment innovation  3D Printing: 3D printed casts, implants and organs providing
unprecedented levels of customization

Digitalized  Consumption frugality
Consumerism  Green consumerism
 Demand for personalization
 Mobile-first consumption
 IoT: End consumer data analytics, at the Edge, will lead to
real-time, preemptive digital marketing push, pulling down
total cost of consumption
 Blockchain: Financial inclusion and access through end-
point devices, and trust-based transactions, to drive up
consumption

Source: NASSCOM

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 The Technology Sector in India: Strategic Review 2020

ENVIRONMENTAL SUSTAINABILITY STRESS

Urbanization stetching beyond means

World population is projected to grow to over 9 billion in 2050, leading to a global middle class surge that will
result in rampant urbanization, with 70 per cent of the world’s population living in cities by 2050. As a result,
consumption will see a non-linear rise leading to faster rate of resource depletion. We are expected to consume
300 per cent of the resources that the Earth will produce.

Urbanization and consumerization impact

2018 2050

1.7 EARTHS to replenish the natural 3 EARTHS required to provide natural resources
resources we consume needed to sustain

Faster rate of resource depletion in 2050

70% 1 bn. ~15% 50-60% 70% 87% 90 bn.

of world’s urban of new urban increase in rise in tonnes
increase
population residents population solid waste greenhouse per year
in demand
will live in in low- will be living generated gas (GHG) of raw
for energy
cities elevation with some annually emissions materials to
worldwide
coastal zones kind of from global be consumed
- at risk of disability agriculture by cities of
climate- the world
related
hazards

Source: Global Sustainable Development Report 2019, United Nations, WEF

83
 Rising concerns in environmental sustainability
The rate of depletion of natural resources will be a much larger concern in the future, posing a threat to global
environmental sustainability. Water, energy and food will be utilized at a faster rate, as compared to now, now
impacting billions of people. Waste disposal will become a grave concern, directly impacting global emissions.
Climate change could, most likely, become the reason for upto “1.4 billion” environmental migrants by 2050.

2015-2019 2035-2050

WATER 3.6 bn. people are currently
SCARCITY living in potential water-
scarce areas, with water
availability disruptions for
almost a month per year
4.8-5.7 bn. people will live in
potential water scarce areas
by 2050

WASTE 2.01 bn. tonnes global annual 3.5 bn. tonnes of expected waste
GENERATION waste generated in 2016 generated by 2050, rise of 70%

ENERGY Over 600 quadrillion Btu 50% increase in world’s energy

CONSUMPTION energy, per year, consumed consumption by 2050, to over 900
worldwide in 2018 quadrillion Btu per year, most of it
driven by Asia

CLIMATE 17.2 mn. people in 144 countries 140 mn. environmental

ACTION and territories displaced due to migrants forecasted
disasters in 2018 worldwide by 2050

FOOD Over 820 mn. of 6.8 bn. 60% rise in demand for food by 2050,
AVAILABILITY people are going hungry today due to 34% increase in population

Source: EIA, FAO, IDMC, UNESDOC, United Nations, WEF, World Bank
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 The Technology Sector in India: Strategic Review 2020

ENVIRONMENTAL SUSTAINABILITY STRESS

Distant goalpost?

Sustainability – UNDP Agenda 2030 missed, and not fungible

Global progress on UN Development Program (UNDP) Sustainable Development Goals (SDGs) for 2030 paints a
dim picture with most countries destined to miss targets – limited planning and unclear technology intervention
are key causes. An analysis of world’s performance across the17 SDGs for all countries showed that we are far
from the goal, with every country having gaps in >50 per cent SDGs and >25 per cent countries missing their
goals in all SDGs. The earlier-identified environmental sustainability concerns can be directly mapped to certain
UNDP SDGs, and both will need digital solutions to achieve targets and stop further environmental damage.

Key Concern UNDP SDG Gap to Global Goal* Digital Solution Potential Impact
Percent of 193 countries

• Smart water Up to 15% water

management consumption
reduction
WATER
SCARCITY 37% 45%

• Smart agriculture 20% food waste

• Smart manufacturing savings in
2030 from smart
WASTE agriculture
GENERATION
24% 48%

• Smart Energy 1.3 billion MWh

savings in 2030

ENERGY
CONSUMPTION 16% 77%
• Smart agriculture Around 20% of CO2
• Smart building equivalent (CO2e)
• Smart energy emissions can be
• Smart manufacturing saved in 2030
CLIMATE • Smart mobility
ACTION 17% 68%

FOOD • Smart agriculture Crop yield

AVAILABILITY 46% 22% increase of
>900 kg/ha in
2030

24% 48%
Substantial gap to target value Gap to target value Fulfills target value No data available

* The Gap to Global Goal is an aggregate view of individual countries missing their respective targets in each of the 17 UNDP SDGs
Source: Accenture Strategy, GeSI
85
 ENVIRONMENTAL SUSTAINABILITY STRESS
Emerging technology opportunities
Environmental sustainability use cases that require immediate attention include managing water, waste disposal
and treatment, natural disaster response readiness, providing clean and affordable energy, and ensuring food
security. Innovative strategies and investments are needed to promote sustainable development. Advanced and
foundational technology solutions can enable resource preservation, waste reduction, and optimal utilization at
scale, thereby supporting a sustainable future.
Environmental Solution Components
Sustainability
Stress
Waste Management  Reduction in waste generation
 Safe waste recycling
 Environment friendly waste
delivery
 Intelligent waste management
techniques
Disaster  Disaster preparedness
Management  Crisis management and
disaster recovery
Affordable and  Smart energy grids
clean Energy  Reverse grid integration
 Optimization of operating
parameters
Food Security  Improving agricultural
productivity
 Improving food accessibility
 Prevent post harvest loss
Water Conservation  Deploying water-reuse
solutions in megacities
 Redesigning supply chains
 Integration of diversified
sources of supply
Source: ITU, United Nations, WEF, World Bank
86
Digital Technologies and Use Cases
 Robotics: Robots at recycling facilities for quality
control, and enhanced worker safety
 BDA: Analysis of how waste management choices
impact GHG emissions
 IoT: Smart waste management with sensors on each
dumpster
 Cloud: Cloud-based analytical platforms that connect waste
producers with a network of independent waste haulers
 IoT: Remote sensing technologies for flood prediction
and comprehensive design tools for hydraulic
modelling
 AI: Algorithms for detection and prediction of natural
disasters
 BDA: Crisis management analysis of social media
communications during a disaster to avoid
misinformation propagation
 Robotics: Search-and-rescue robots to avoid humans
to visit
 Blockchain: Rapid and reliable collection of data during
a crisis through DLT
 Blockchain: Decentralized and sustainable resource
management via smart grids
 IoT: Smart energy saving devices
 AI: ML to optimize operating parameters of turbines
 AI: Intelligent weather models that help farmers make
informed decisions to maximize yield
 3D Printing: Lab grown meat, reduction in resource
utilization
 Robotics: Automating farming - ecological and
economical weeding of row crops
 IoT & BDA: Use of sensors and analytics for urban,
indoor and vertical farming
 AI: Algorithms to improve ultra-filtration membranes
in municipal wastewater treatment plants
 IoT: Remote sensing to identify the need to repair or
replace infrastructure
 Blokchain: De-risking financial investments, use
of asset-backed tokens for more resilient water
infrastructure
 The Technology Sector in India: Strategic Review 2020

DATA-LED ECONOMY
Case for data generation to data barter

Tech-based consumption and mass urbanization will lead to Big Data explosion – 175 zettabytes by 2030, 80 per
cent unstructured, 30 per cent real-time, and nearly two-thirds machine-to-machine (M2M) data – necessitating
data-led revenue models to compensate for the massive cost of data management.

Nature of data is shifting

Only 10 per cent of the current data is structured, remaining 90 per cent data is unstructured

175 ZB
of data by 2030.
Two-Thirds M2M
One-Third Real-Time

Zettabytes (ZB)

BIG DATA
Sensor/RFID/Devices
Speech to Text
Structured and Mobile Web
Petabytes (PB)
Unstructured Data
WEB
Web Logs
Offer History
Dynamic Pricing
Terabytes (TB)

CRM
Segmentation
Offer Details
Gigabytes (GB) Support Contacts

ERP Structured Data

Purchase Detail
Purchase Record
Megabytes (MB) Payment Record

Increasing Data Variety and Complexity

Source: Hortonworks, IDC, Seagate

87
 Emerging data monetization opportunities

Enterprise and Consumer Data Social Media Data Potential Data

2025+ A day on the Internet Monetization Opportunities

Digital Manufacturing,
 175 ZB data by 2030  500 mn. tweets are sent targeted to be a USD
1.4 tn. market, will be
 1 tn. connected “things”  294 bn. emails are sent the primary driver of
data-led economy
 6 bn. consumers interacting with  4 PB created on Facebook
data
 4 TB created from each
 >80% unstructured data connected car
Healthcare – fastest
growing segment driven
 Consumer data/enterprise data  65 bn. messages sent on
by consumer-generated
ratio falls to 36% on account of WhatsApp
simple statistics to
rise in industrial M2M data
highly-complex medical
 5 bn. searches made imaging data

Retail and warehouse

data driven by PoS and
e-commerce data – for
Estimated annual cost to build and Data-led revenue for software mass-personalization
run a data warehouse - between and services will rise to USD and fast deliveries
USD 19,000-25,000 per TB 103 bn., at CAGR of
10.5% by 2027

New-to-World data-led revenue opportunities

Rise of data-native businesses disrupted global giants within a span of a decade, with 4 of the top-10 publicly-
listed largest technology companies having come to existence just over 10-15 years ago. Incumbents believed
in the non-replicability of physical assets and products; however, underestimated the power of data-led
businesses, particularly the potential of sharing data openly without losing IP from analyzing the data for revenue
opportunities. Asian tech-led companies, with asset-light aggregator models, will exploit consumer, machine, and
operations data to predict and fulfill unique demands.

Opportunities with end-point data

M2M Sensors and Devices
Edge/end-point/non-human
data
Machine data can be sold
to
 Down/upstream supply
chain partners for better
overall coordination
 Analyst companies for
additional revenue
Consumer Wearables
End-points/end consumers
End-point data collection
enables
 Consumers to choose what
to sell and to which buyer
 Government, enterprise,
other consumers, social/
community groups gain from
cross-selling of data
Edge-to-Cloud
Multi-endpoint network
Edge-to-cloud can lead to
 Each end-point with a
different revenue-sharing
model
 Enterprise builds
algorithms to decide what
to integrate and how

Source: Amazon, HP, IDC, McKinsey, Raconteur, Seagate

88
 The Technology Sector in India: Strategic Review 2020

DATA-LED ECONOMY
Pathways to data monetization- potential business model shifts

Companies are monetizing data both for internal optimization of their operations, as well as, for additional
external revenue stream. Internal data monetization helps them gain an understanding of their customers,
providing a competitive edge while external data monetization models vary by level of value impact to
customers, analytics sophistication, and revenue potential.

Internal monetization
Select digital-native disruptors and digitally transformed players

External data monetization models

Data-as-a-Service Insights-as-a- Analytics-enabled

Data syndication Service Platform-as-a-Service

Anonymized and Combine internal and Proprietary algorithms to

aggregated data sold to
intermediate companies/
end customers who mine
the data for insights
external data sources,
applying advanced
analytics to provide
actionable insights
generate enriched, highly
transformed, customized
real-time data, delivered
via cloud-based, self-
service platform

captures shopping decision-support model Predix platform

data generated by for ship operators and provides additional
its rewards card and owners that provides value to customers via
sells it to consumer continuous prediction data-based services
packaged-goods of coating technologies increase efficiency of
companies machines

Source: Capgemini, EY, MIT Sloan Review

89
 DATA-LED ECONOMY
Emerging technology opportunities

Big Data represents one of the largest untapped resources yet. Together with the rise of cloud computing as a
core base, and supporting IoT and AI as data generation and analysis technologies, Big Data is now a foundational
technology for all advanced technologies to build on. Availability of low-cost subscription storage and compute
power, and increasingly, advanced analytics APIs, will transform large fixed costs to more variable cost structures.

Data-led economy Solution Components Digital Technologies and Use Cases

Individual Data  Consumer behaviour  AI: AI engines to assess the worth of data,
Monetization based revenue model quality of the source and its importance to their
Opportunities sample set, and design a revenue model
 Blockchain: Decentralized, secure, traceable
and efficient data payment transactions

Development of  Pay-as-you-go  Cloud: Leverage on-premises and/or cloud-base

Hyper-Scale Data infrastructure deployment models to reduce cost
Centers

Analytics-Enabled  360-degree view of  BDA: Deliver business outcomes via data-

Platform-as-a- customers science driven predictive analytics
Service  M2M sensors and  IoT: Data captured from sensors and M2M
devices interactions

Data Governance  Information protection  AI: AI-assisted reporting, data governance

and Security  Data activity and compliance metrics can continuously be
anomaly detection compared to business performance metrics
 Data discovery and
classification

Source: Deloitte, Forbes, Infosys, United Nations, US Chamber Foundation

90
 The Technology Sector in India: Strategic Review 2020

DISRUPTED FUTURE OF WORK

Disrupted workspace, workculture, and workforce

Future of work will be disrupted at the (virtual) workplace with automation and co-working machines doing more
for human counterparts, through technology-assisted, skill-based work cultures, and by the diversity of emerging
workforce mix with Gen Z constituting nearly 36 per cent of the global workforce. Employees will seek more
environmentally conscious initiatives by the enterprises.

Future of work

Future of Workspace
Boundary-less Connected
Future of Workforce
Human – Machine
Workplace
Collaborations

Future of Workculture
Plug-and-play Skill
Economy

Forces shaping the future of work

DEMOGRAPHIC Workforce in the next decade will span over five generations – Baby Boomers, Gen X,
CONFLUENCE Gen Y, Millennials, Gen Z – resulting in an ever-complex confluence of working styles and
work cultures.

CO-EXISTENCE Co-existence of technology-enabled aids/devices with human workforce will enable

WITH reprioritization of tasks, ensure transparent work cultures, and enhance decision-making
TECHNOLOGY capabilities at work.

TSUNAMI OF Exponential amount of data will generate new business models and new data economy
DATA relevant job opportunities. Ability to sift signal from noise in a data deluge will create
workforce winners.

Frequent geo-political disputes, economic uncertainties, and “black swan” events

GEOPOLITICAL, will strain cross-border skills flow and short-term resourcing plans, yet create new
ECONOMIC AND talent pools.
ORGANIZATIONAL
COMPLEXITY
RISING Climate change and natural resource constraints will result in consumers seeking
SUSTAINABILITY responsible products and services, pushing enterprises to rethink businesses, processes,
CONSCIOUSNESS products, technologies and required skills.

Source: IDC, PwC, SAP

91
 DISRUPTED FUTURE OF WORK
Flexible, agile and open

Technology interventions and the working styles of Millennials and Gen Z will transform the workspace of the
future. Workspaces will become agile, open, flexible and highly connected.

I. Increased adoption of immersive technologies to create a more interactive

and intelligent workspace
As lines between physical and virtual worlds blur, organizations will adopt AR/VR technologies for interactions
with employees and customers across locations.

Key Sectors Adopting Immersive Workspace Technologies

Healthcare Engineering Retail Education Public Sector

Key Immersive Workspace Application Areas

Design and Sales and Corporate Field Virtual

Visualization Marketing Trainings Services Showrooms

Source: IDC
92
 The Technology Sector in India: Strategic Review 2020

Key Adoption Trends

Information All field service Corporate

workers will technicians training will be
~33% leverage AR ~15% will utilize AR ~20% transformed by
to access technologies, VR, increasing
information and by 2020 effectiveness
collaborate with and cutting
colleagues, by costs in half
2021

II. Seamless work access across physical and digital workspace integration
Workspace would offer employees mobility and secure remote access to tools and data

Key Enterprise Mobility Initiatives

B2C/B2E Mobile Endpoint Smart Mobile App

Mobile Apps Security Devices Management

Companies across top five global

economies plan to retain/increase their
>80% mobility investments over next 12-18
months

Source: IDC
93
 DISRUPTED FUTURE OF WORKCULTURE
Borderless, collaborative, and innovation focused

With culture as the defining character, Workculture of the future will be even more borderless, collaborative,
and innovation-focused.

I. Nurturing ecosystems for innovation and collaboration

 Co-working as-a-service finding greater acceptance across global markets to nurture innovation, attract
and retain talent
 Changing work culture, which is creating new opportunities and challenges for organizations

Key Trends

1.7 million

Co-working culture on the rise

43 K Globally, 19,000 co-working spaces with 1.7 million
people working out of these in 2018, as compared to
just 43,000 people working out of such spaces in 2011

2011 2018

Large organizations leveraging co-working spaces to attract and retain the best talent and foster collaboration

II. A digital-first approach and new workflows to meet different expectations

The digital economy is changing the traditional operating models and how organizations interact with internal
and external stakeholders

 Organizations focus on digital technologies and practices to meet expectations of different stakeholders

Key Trends

Commercial Enterprises’ New industrial

apps will use AI own robots will
~75% by 2021 ~90% development >50% leverage AI by
teams will be 2021
using AI tools
and services
by 2021

Source: Deloitte, HP, IDC, News Articles, PwC, SAP, NASSCOM

94
 The Technology Sector in India: Strategic Review 2020

DISRUPTED FUTURE OF WORKFORCE

Gig economy

Workforce of the future will comprise of intelligent machines and humans working together. Digital
technologies will augment human capabilities to deliver automation-led products and services

I. Rise of the gig economy and borderless enterprises

 The nature and composition of the workforce is evolving to include Millennials, GenZ and other digital native
workers, thus impacting talent and human capital management practices at enterprises
 An open-source talent acquisition via crowdsourcing is emerging as an alternative staffing model – growing in
scale, sophistication, and importance

Key Trends

Workforce will Of global Of global

use virtual, workforce will workforce will
~80% borderless and ~75% comprise of ~36% comprise of
task-oriented millennial by GenZ by 2020
recruitment 2025
platforms by
2023

II. An increasing mix of machines and humans

 Digital technologies are redefining the way tasks are performed, resulting in growing mix of humans and
intelligent machines working together
 Workforce of the future will not only collaborate with intelligent machines to augment their capabilities, but
will also manage and supervise tasks performed by them

Key Trends

Task hours will

be performed
~42% by machines
by 2022, as
compared to 29%
in 2018

Source: Deloitte, HP, IDC, News Articles, PwC, SAP, NASSCOM

95
 DISRUPTED FUTURE OF WORK
Emerging technology opportunities

Digital technologies such as AI, IoT, AR/VR, Blockchain, Cybersecurity, Social and Mobile, etc., are at the center
of digital strategies. However, strategies need to be complemented with next-gen Workculture, Workspace
and Workforce to enable use cases such as agile and borderless enterprises, alternative workforce on-boarding
and most importantly human and machine collaboration to make organizations future-ready.

Disrupted Future of Solution Components Digital Technologies and Use Cases

Work Opportunities

Agile and  Adopt dynamic and  Social, Mobile and Cybersecurity: Agile collaboration
Collaborative responsive organizational tools with seamless integration across different
structures channels to communicate with internal and external
Organizations  Create project-based teams, stakeholders; Mobile app deployment management
rapid delivery through and security
iterative process

Borderless Offices
 Create strategic “hubs” with
lower operational and capital
costs
 Foster co-working culture
 AI and IoT: Mobilizing and hyper-connecting
workforce
 Cloud: Cloud platforms offering ‘Everything as a
Service’, bring down cap-ex and op-ex
 AR/VR: Remote, on-site repair and maintenance,
expert assistance for faster operations and decision
making

Workforce  Augment capabilities of  AR/VR, IoT, and AI: AR/VR and smart wearables to
Augmentation human workforce help augment employees’ performance and work in a
smarter and better way
 AI and BDA: Enable decision making by analyzing
real-time data
 Robotics: Robotic process automation (RPA)
technologies will handle high-volume, repetitive and
manual tasks

Alternate  Manage global talent pool  AI: New recruitment and talent management
Workforce of permanent, short-term, platforms
and gig workers  Blockchain and Cybersecurity: Identity management,
mobile and device security, data loss prevention
 VR: Conduct virtual interviews, orientations and
office tours during recruitment

Collaborative  Information processing and  AI: Enable machines to handle back-office operations;
Workforce: decision support allow humans to do value-added work
 AI: Smart digital assistants to become first point of
Humans + contact for customer service operations
Machines

Source: Deloitte, HP, IDC, News Articles, PwC, SAP, WEF, NASSCOM
96
 The Technology Sector in India: Strategic Review 2020

APPENDIX

151
 Glossary
3D Printing
3D printing is an alternative to traditional product
manufacturing wherein the graphical product design data is
taken from a CAD/CAM software and input into a 3D printer.
The 3D printer segments the product print sequence and
then applies the combination of input material to execute a
layer-by-layer production. This layer-by-layer production is also
called Additive Manufacturing.
Application Programming Interface (API)
API is an independent reprogrammable piece of code
that abstracts underlying implementation from the main
development layer and acts as a communication interface
between the two. Open APIs are publicly available and enable
developer access to proprietary software applications or web
interfaces.
Artificial Intelligence
Artificial intelligence (AI) makes it possible for machines to
learn from experience, adjust to new inputs and perform
human-like tasks.
Artificial Narrow Intelligence
(ANI, Machine Learning)
Narrow artificial intelligence focuses on a single subset of
cognitive abilities where technology outperforms human
capabilities.
Artificial General Intelligence (AGI, Machine
Intelligence)
More generalized ability of a machine to understand and learn
any intellectual task that a human can. cloud by accessing a shared set of resources at each delivery
Artificial Super Intelligence (ASI, Machine Consciousness)
Ability of machines to demonstrate intelligence and cognitive
capability beyond the highest human capability.
Augmented Reality (AR)
A technology that superimposes a computer-generated image
on a user’s view of the real world to enrich the interaction
Automated Machine Learning (AutoML)
AutoML enables ML applications to be used by non-ML
experts using methods and processes across proprietary
programs.
152
Big Data
A term that describes the large volume of data – both
structured and unstructured – that inundates a business on a
day-to-day basis.
Big Data and Analytics (BDA)
Big Data and analytics involves processes, algorithms and
visualizations that enable examining large and varied data
sets using advanced analytical programs to uncover unknown
patterns, correlations and predictions.
Blockchain
A decentralized, consensus-based, tamper-proof data
structure, comprised of unchangeable, digitally recorded
data in packages called blocks. Each block is then ‘chained’ to
the next block, using a cryptographic signature. This allows
block chains to be used like a ledger, which can be shared and
accessed by anyone with the appropriate permissions.
Blockchain IoT
Application of blockchain to sending and receiving data
from the end-points and devices connected to form the IoT
network.
Business Intelligence (BI)
A way to reveal actionable insights in your data.
Business Process as a Service (BPaaS)
A version of software as a service (SaaS) where buyers receive
standardised business process services sourced from the
level (people, application, infrastructure) from a single service
provider and constructed for multi-tenancy. Services are often
automated, and accessed via Internet-based technologies.
Business Process Management (BPM)
Erstwhile BPO; now re-branded as BPM- includes processes
that may be IT-enabled, do not necessitate on-shore presence
and are hence, offshoreable.
Cloud Computing
The delivery of computing services—servers, storage,
databases, networking, software, analytics, intelligence
 The Technology Sector in India: Strategic Review 2020

and more—over the Internet (“the cloud”) to offer faster
innovation, flexible resources and economies of scale.
Cloud Infrastructure
Cloud infrastructure is no different from typical data centre
infrastructure except that it’s virtualised and offered as a
service to be consumed via the Internet. Servers, storage,
compute resources and security are all key components of
cloud infrastructure.
Cloudlet
Cloudlet is an architectural arrangement arising from the
convergence of mobile computing, IoT and cloud computing.
It represents a layer within a hierarchy between an IoT end-
point device and the cloud computing center/cloud data
center. It is conceived as a “data center in a box” that could
bring cloud closer to the end-point IoT device.
Conversational Chatbots
Conversational Chatbots are AI agents possessing intelligence
and capability for automating conversations at customer-
facing touchpoints.
Custom Application Development (CAD)
CAD services focus on delivering customized (to client
requirements) development of software applications and
interfaces as well as enhancements to existing packaged
applications or pre-engineered templates and support and
provision of custom applications.
Customer Interaction & Support (CIS)
CIS includes all forms of IT-enabled customer contact; inbound
or outbound, voice or non-voice based support used to
provide customer services, sales and marketing, technical
support and help desk services.

Cloud Management Platform Data Lakes

Cloud management platforms are integrated products that
A data lake is a centralized repository that allows you to store
provide for the management of public, private and hybrid
all your structured and unstructured data at any scale.
cloud environments.

Cloud Orchestration Decentralized Ledger Technology

A decentralized ledger is a digital logbook that uses
Cloud orchestration refers to the arrangement and
some protocol to enable computers in different places to
coordination of automated tasks resulting in a consolidated
continuously update the shared information store.
process or workflow.

Cloud Security Deep Learning

Deep learning is a subset of machine learning that uses multi-
Cloud security is a framework of data, network and
layered neural networks to extract higher level features from
information security applied using a broad-encompassing set
input data.
of policies, technologies and controls that enable at-rest and
in-transit security of information assets.
DevSecOps
Collaborative Robots (Cobots) DevSecOps is the development methodology in which
security-related tasks are embedded, often in an automated
A collaborative robot, also known as a cobot, is a robot that is
fashion, into the entire cycle of software development
capable of learning multiple tasks and interact with humans in
oriented along the operational lifecycle.
a shared space or to work in close proximity.

Consortium Digital Contracts

Digital contracts (also known as smart contracts) are self-
A blockchain where the consensus process is controlled by
executing contracts, run on Blockchain, intended to digitally
a pre-selected set of nodes. The right to read the blockchain
facilitate and verify credible transactions.
may be public or restricted to the participants.

Containerization Digital Ethics

A practice by which any user of digital technologies,
A software programming and packaging technique that
increasingly so related to social media presence, becomes self-
combines an application with its configuration files, libraries,
aware and an active practitioner of ethics and professionalism
and interface objects to create a platform and stack-agnostic
in the social.
application, such as Docker and Kubernetes.

Continuous Intelligence Digital Forensics

A branch of forensics that applies to recovery and
Continuous intelligence integrates real-time analytics with
investigation of material or evidence from digital devices,
business operations for processing data to define actions in
personal or enterprise.
response to various business events

153
 Digital Twins
A digital twin is a digital replica of a living or non-living physical
entity.
Distributed Cloud
Distributed clouds are smaller setups of centralized cloud
architecture across multiple, distributed locations with
the aim to localize subsets of data and analytics, while
the governance, overall operations, updates and services
reengineering sits at the original site.
eCommerce
Commercial transactions conducted electronically on the
Internet by businesses and consumers is called eCommerce.
eCommerce is divided into Business to Business (B2B),
Business to Consumer (B2C) and Consumer to Consumer
(C2C).
Edge Computing
Edge computing enables connected devices to process data
closer to where it is created.
Edge AI
Edge AI comprises of AI algorithms that are processed locally
on a hardware device, without requiring any connection to
generate real-time insights in less than few milliseconds.
Edge Analytics
Edge analytics is an approach to data collection and analysis
in which an automated analytical computation is performed
on data at a sensor, network switch or other device instead of
waiting for the data to be sent back to a centralized data store.
Endpoint Protection
Also called endpoint security, endpoint protection comprises
data, network and information security to ensure protection
of computer networks with remote connect to client end
points.
Engineering Services and Research &
Development (ER&D)
Engineering services are those that augment or manage
processes that are associated with the creation of a product
or service, as well as those associated with maximizing the
life span and optimizing the yield associated with a product or
asset. This not only includes design elements of the product
or service itself, but also encompasses the infrastructure,
equipment and processes engaged in manufacturing/
delivering them.
R&D services involve providing research and development for
hardware and software technologies, as well as development
of software running on embedded systems. This includes
computer-aided design (CAD).
154
• Product Engineering Services (PES)/Offshore Software
Product Development (OSPD) Outsourced development
of the customer’s product, thereby taking up the
responsibility of all aspects of the product lifecycle- R&D,
prototyping, development, testing, maintenance, support
and development of next generation of the products. The
development can be outsourced to either a GIC (global in-
house captive) or to a third-party vendor.
Going forward, this segment would be clubbed with
ER&D and would be referred to as Product Engineering
Services (PES).
Extended Reality
Extended reality is an umbrella term comprising of AR, VR and
MR. it refers to all real-and-virtual combined environments
along with interactions between humans and machines.
Finance & Accounting (F&A)
F&A includes activities such as general accounting,
transaction management (account receivables and
payables management), corporate finance (e.g. treasury
and risk management, and tax management); compliance
management and statutory reporting, etc.
Global Capability Centers/Captive units
Captive units include both MNC-owned units that undertake
work for the parents’ global operations and the company
owned units of domestic firms.
Global Sourcing
Services sourced from a country/countries different from the
country where the firm receiving the services is located. It
includes both offshoring and near-shoring.
Hardware Deployment and Support
The hardware deployment and support service pertains to
the installation and support of a specific hardware device. The
service is focused on the device and its components rather
than on software that is running on the device. Installation
activities can include hardware staging and configuration,
testing and debugging, site preparation, and physical
installation of the device.
Horizontal-specific BPM services
Services that are reasonably similar across industries.
Horizontal BPM services include Customer Interaction and
Support (CIS), Finance and Accounting (F&A) and other
related processing services, Knowledge Services, Human
Resource Management (HRM), Procurement BPM, etc.
Human Resource BPM
HR BPM, involves services that are delivered during the initial
design and implementation of the solution as well as on a
continuous and ongoing process improvement basis. Services
such as business consulting, IT consulting, systems integration,

application outsourcing (AO), training and education, and
change management are typically involved in HR BPM
engagements.
Human Resources Processing
HR processing services includes services that support the core
HR activities plus talent management activities and associated
business processes such as benefits, payroll and talent
management.
Hyperconverged Infrastructure
A form of virtualized infrastructure, hyperconverged
infrastructure is defined by software and comprises all
infrastructure elements – computing servers, storage, and
networking devices – within a single stack.
Hyperscale Computing
It is the system of computing attuned to Big Data and
distributed computing where computing power can be quickly
scaled based on needs of multiple tenant clients that usually
make the case to build a hyperscale computing system.
Infonomics
Study of how economic and asset management principles
can be applied to the valuation, handling, and deployment of
information assets.
Intelligent Automation
Intelligent automation is a more advanced form of robotic
process automation (RPA). It is a combination of robotic
automation with one or more AI technologies.
Intelligent Edge
Intelligent Edge is a term describing a process where data
is analysed and aggregated in a spot close to where it is
captured in a network, has important ramifications for
distributed networks including the internet of things (IoT).
Intelligent Mesh
Intelligent digital mesh is the interconnectivity of wearables,
mobile devices and IOT sensors that people use to find
information or communicate online. The digital mesh refers
to the expanded set of endpoints which is used to access
applications, gather information or foster human interactions.
Intelligent Robots
A robot that functions as an intelligent machine, that is, it can
be programmed to take actions or make choices based on
input from sensors.
Initial Coin Offerings (ICOs)
ICOs, or Initial Coin Offerings, are a form of company
financing. In most jurisdictions due to regulations these
“tokens” don’t represent shares or real economic rights over
The Technology Sector in India: Strategic Review 2020
the company that issues the ICO. Instead of shares and the
shareholders have the option of trading tokens with other
users, or using them to pay for services from the issuing entity.
Independent software vendor (ISV)
An ISV makes and sells software products that run on one or
more computer hardware or operating system platforms.
Internet of Things (IoT)
A network of physical objects that contain embedded
technology to communicate and sense or interact with their
internal states or the external environment.
Industrial IoT
The Industrial Internet of Things refers to interconnected
sensors, instruments, and other devices networked together
with computers’ industrial applications
Infrastructure Services
It involves a long-term, contractual arrangement in which
a service provider takes ownership of and responsibility
for managing all or part of a client’s information systems
operations or department based on a service level agreement.
It usually includes data centre operations and may also
include services such as desktop management, local and wide
area network operations management, help desk support,
application development and maintenance, disaster recovery
services and related consulting and systems integration
activities.
Infrastructure-as-a-Service (IaaS)
Infrastructure-as-a-service is a cloud deployment strategy that
provisions and manages infrastructure for building, running,
and maintaining software platforms and services over the
network.
IoT Security
IoT security is the technology area concerned with
safeguarding connected devices and networks in the internet
of things (IoT).
IT Consulting
IT consulting includes IS strategy, IT and network planning,
architectural assessments, IS operational analysis, technical
system and network designs, product-specific consulting,
supplier assessment and maintenance planning.
IT Education and Training
Encompasses education to enhance the knowledge of
information technology and expand its use. Training
represents training content, delivery solutions, and learning
services of IT/technical and desktop applications training
delivered to the corporate market by an external provider.
155
 IT Services Outsourced/Offshore Software Product Development (OSPD)
SEE Engineering Services and Research & Development
IT services involve a full range of engagement types that
(ER&D).
include consulting, systems integration, IT outsourcing/
managed services/hosting services, training, and support/
maintenance. On-site
Client site.
Knowledge Services
It comprises outsourcing of knowledge intensive processes, Outsourcing
which includes services such as business research, market
Outsourcing is a type of engagement, such as consulting and
research, data management, data analytics, legal and
integration that can be sourced from any of the lower-cost
intellectual property services.
regions.

Machine Learning Packaged Software

Machine learning refers to ability of computer systems to
SEE Software Products.
improve their performance by exposure to data without the
need to follow explicitly programmed instructions.
Platform-as-a-Service (PaaS)
Multi-Cloud A model to build, run and host applications without having
to acquire infrastructure relevant to that specific application,
Multi-cloud architecture comprises of heterogenous cloud
with the metering of IT infrastructure costs based on actual
architectures and distributed cloud assets and software
utilization.
across multiple cloud computing providers such that these
can be connected to ensure the most optimal distribution of
enterprise workloads. Platform-based solutions
Solutions where the software platform is provided (owned or
Natural Language Processing maintained) by the provider.
Natural language processing (NLP) is a branch of artificial
intelligence that helps computers understand, interpret and Product Engineering Services (PES)
manipulate human language. SEE Engineering Services and Research & Development
(ER&D).
Natural Language Query
Natural Language query allows users to get insights by queries Procurement services
written in spoken language without following any specific Procurement services are the transfer of ownership of some
format or syntax. or all procurement processes or functions to providers. This
could include administrative, delivery, or management-related
Nearshore/Near-site processes or functions.
Country near to client country.
Robotics
Network Consulting and Integration Robotics combines multiple branches of science, engineering,
and mathematics to design, create, operate, and utilize
Network consulting and integration services are the activities
machines, or robots, to perform human-completed tasks of
and skills associated with planning for and building data
varying levels of process and cognitive complexities. It also
networks. Network consulting services include activities such
involves creating computer systems for their control, sensory
as operations assessment, network planning and design,
feedback, and information processing.
capacity planning, and maintenance planning. Network
implementation includes services such as installation,
Companies and academic institutions experimenting with and
configuration, custom software development, testing and
commercializing robotic solutions have developed certain
debugging, project management, staging, and security
robotic operating system (ROS) and ROS-industrial standards
implementation activities.
for global standardization.

Offshore Robotic Process Automation (RPA)

The transferring of a complete business process to a different
It refers to automation which interacts with a computer
country that is significantly geographically separated from the
centric process through the User Interface (UI) / user objects
country or countries where the firm receiving the services is
of the software application supporting that process. A robot is
located.

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usually a runtime environment on which different processes/
tasks can be executed. RPA can process structured and semi-
structured data.
Serverless Cloud
Serverless cloud architecture enables an end-user to build and
run applications and flexibly scale utilization without having
to acquire or provision infrastructure, operating system, and
storage.
Small and Medium Businesses (SMB)
Demand side enterprises with average employees of less than
1,000 who are potential users of IT-BPM services.
Small and Medium Enterprises (SME)
Supply side enterprises that offer IT-BPM services and have
annual revenues of less than INR 500 million.
Smart Enterprise
An enterprise configured to deliver maximum strategic and
operational value from established and emergent technologies
and associated shifts in customer behaviour and competitive
landscape. It uses technology to redefine customer
experiences, improve operational efficiency, and embed digital
advantages throughout its business model.
Software-as-a-Service (SaaS)
A model of software development where an application is
hosted as a service provided to customers across the Internet.
By eliminating the need to install and run the application on
the customer’s own computer, it alleviates the customer’s
burden of software maintenance, ongoing operation and
support.
Software Deployment and Support
Software deployment and support services are activities,
expertise, and systems providing the customer with proper
installation and configuration of all packaged software
products as well as appropriate ongoing support, access to
resources, and distribution of software product releases,
updates, and upgrades.
The Technology Sector in India: Strategic Review 2020
Software Products (Packaged software)
Packaged software is programs or code sets of any type,
commercially available through sale, lease, rental, or as a
service. Packaged software revenues typically include fees for
initial and continued right-to-use packaged software licenses.
Supervisory Control and Data Acquisition
(SCADA)
SCADA systems comprise of hardware and software
components used to locally or remotely control operations of
a designated nature, with the ability to track, assess, and apply
data collected through automated controls for performance
monitoring, management, and improvement.
Systems Integration
Systems integration (SI) includes the planning, design,
implementation, and project management of a solution that
addresses a customer’s specific technical or business needs.
It involves systems and custom application development, as
well as implementation and integration of enterprise package
software.
Third-party units
Third-party units are essentially service vendors that are
mostly independently owned units (i.e. no single client has
a controlling stake in the vendor entity).Third-party vendors
also include a small section of MNC-owned independent
third-party vendors, such as Cognizant, IBM, Convergys, SITEL,
Vertex and Sykes, having a significant part of their global
operations based out of India.
Vertical-specific BPM services
Vertical-specific BPM services refer to offerings that require
a high degree of vertical specific knowledge that is not easily
replicable across industries (e.g. insurance claims processing).
Virtual Reality (VR)
An artificial, computer-generated simulation of a real-life
environment or situation that surrounds a user and responds
to that individual’s actions in a natural way, usually through
immersive head-mounted displays and head tracking.
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 List of Sources & Contributors

Sources
451 Research Great Learning NPCI
Accenture Hackernoon Oxford Insights
ADB Han Digital Solution Pareekh Jain Consulting
Amazon Han Digital Solution Price Waterhouse Cooper
ASEAN HfS Research Questel Orbit Patent Database
Avasant Hongkong Trade Development Council Report Linker
Baird Hortonworks Reserve Bank of India
BoFA Global Research HP SAP
BNP Paribas IAMAI Software Technology Parks of India
Capgemni IBM Standard Chartered Bank
CB Insights IDC Statista
Constellation Research IDMC Strategy&
Contify IDTechEx Strategy&
CrunchBase IMD Techcircle
Deloitte Research Inc42 Tractica
DIPP INSEAD Tracxn
Dynata ISG TRAI
EIA ITU UNESDOC
Ernst & Young JP Morgan United Nations
Everest Group KPMG US Chamber Foundation
FAO LinkedIn USDA
FICCI Markets & Markets VCCircle
Financial Times McKinsey Global Analysis Visual Capitalist
Forbes Ministry of Electronics & Information WIPO
Forrester Technology (Meity) World Bank
Fortune Microsoft World Economic Foorum
Frost & Sullivan MIT Technology Review Worldline
Gartner Morgan Stanley Yourstory
GESI Motilal Oswal Zebra
Global Market Insights NelsonHall Zinnov Research
Goldman Sachs Niti Aayog

Contributors
Altran Infosys Tally Solutions
Bahwan CyberTek Intellect Design Tata Consultancy Services
Cognizant Mahindra Integrated Business Solutions Tech Mahindra
eClerx Majesco Virtusa
Edgeverve Manthan Wipro
EXL Mindtree WNS
HCL QuEST Global
Hughes Systique Subex

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 The Technology Sector in India: Strategic Review 2020

List of NASSCOM Reports

Released in FY2020
Digital Engineering - An Opportunity Unparalleled – January 2020

AI Pervasiveness in Retail – January 2020

Uncovering the True Value of AI - Executive AI Playbook for Enterprises- December 2019

Quarterly Industry Review - December 2019

Edge Computing: Towards a More Distributed Future – December 2019

India, By Design: Perspectives, Trends and Practices-2019– November 2019

Indian Tech Start-Up Ecosystem: Leading Tech in the 20s - November 2019

Industry 4.0 - A Primer on Start-up Driven Industrial Stories – November 2019

Quarterly Industry Review-September 2019

Software Testing to Digital Quality Assurance: A Paradigm Shift – October 2019

Making Urban Mobility Sustainable, Seamless and Safe – September 2019

Voice-Based Conversations - Hype or Reality – September 2019

Fintech Lending - Unlocking Untapped Potential – August 2019

Agritech in India – Emerging Trends in 2019 – August 2019

Quarterly Industry Review-July 2019

AI for Good Compendium – July 2019

NASSCOM 2019 CEO Survey Insights – May 2019

How EdTech Can Impact Primary Education in India – May 2019

Growth of Immersive Media- A Reality Check – May 2019

GCC 3.0 - Spotlight on Digital, Partnerships, New Delivery Models & Future Skills – May 2019

Emerging Technologies: Leading the Next Wave of IP Creation For India – April 2019

NASSCOM Cloud: Next Wave of Growth in India 2019 –April 2019

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