IT & ITES

Presented By:

Harpreet Singh
Meghna Peethambaran
Vijay Subramanian
Giridhar Krishna
 Introduction
India’s IT industry
contributed around 7.7% to India is the leading sourcing
the country’s GDP & is destination across the world,
expected to contribute 10% accounting for approximately
to India’s GDP by 2025. 55% market share

As of FY20, the IT industry India acquired a share of

employed 4.3 million around 38% in the overall
people BPM sourcing market.

IT industry is fuelling the

growth of start-ups in India The computer software and
with presence of around hardware sector in India attracted
5,300 tech start-ups in India cumulative Foreign Direct
Investment(FDI) inflow worth US
$44.91 billion between April 2000
and march 2020.
 Introduction
IT ranked second in FDI in
flow as per the data
released by Department
for Promotion of Industry
and Internal Trade(DPIIT).
Total export revenue of the
industry is estimated to grow
8.1% y-o-y to US $147
billion in FY20. IT & BPM
sector accounted for the
largest share in the Indian
services export at 45%.
Segments of India’s IT Sector IT Services
• Market Size: US $97 billion in FY 20.
• Over 81% revenue comes from the export market.
• BFSI continues to be the key vertical for the IT sector

Business Process Management

• Market size: US $38 billion in FY 20. Market size of BPM industry to reach
US $54 billion by FY 25.
• About 87% revenue comes from the export market.
• BPM had a 19.79% share of the IT & BPM market revenue in India in FY 20.

Software products and engineering services

• Market size: US $34.39 billion during FY 19.
• Over 83.9 % of revenue comes from export.
• It had around 19% revenue share in the Indian IT space in FY19.

Hardware
• Market size: US $14.48 billion in FY 19.
• The domestic market accounts for a significant share.
• Hardware exports from India was estimated to be 7–8% in FY19.
Market Size

IT-BPM industry’s revenue was estimated at around US $191

billion in FY20, growing at 7.7% y-o-y. It is estimated to reach
US $350 billion by 2025. Revenue from the digital segment is
expected to form 38% of the total industry revenue by 2025.

Digital economy is estimated to reach Rs 69,89,000 crore (US$ 1

trillion) by 2025. The domestic revenue of the IT industry was
estimated at US $44 billion and export revenue was estimated at
US $147 billion in FY20.

Total number of employees grew to 1.02 million

cumulatively for four Indian IT majors (including TCS,
Infosys, Wipro, HCL Tech) as on December 31, 2019.
Indian IT industry employed 205,000 new hires and had
884,000 digitally skilled talents in 2019.
 India’s IT Market Size Growing

• The domestic revenue of the IT industry is estimated at US

$44 billion and export revenue is estimated at US $147
billion in FY20.

• The cloud market in India is expected to grow three-fold to

US $7.1billion by 2022 with the help of growing adoption
of Big Data, analytics, artificial intelligence and Internet of
Things(IoT)

• Artificial Intelligence(AI) is expected to boost India's

annual growth rate by 1.3 % by 2035 :NITI Aayog.

• A substantial increase in AI by Indian firms can result in a

2.5% increase in India’s Gross Domestic Product(GDP) in
Market size of IT industry in India (US$ billion)
the immediate term.
GROWTH IN IT & BPM EXPORTS
Sector-wise breakup of export
The export sector crossed US $147 billion in revenue in FY
revenue (FY19)
20, growing at 8.1%.
23
Exports rose at a CAGR of 8.05% during FY 16 – FY 19.
Export of IT services has been the major contributor,
accounting for 54% of total IT export(including hardware)
during FY19. 54

BPM and Engineering and R&D(ER&D) and software 23

products export accounted for 23% each to total IT exports
during FY 19. ER&D market is expected to grow to US $42
billion by 2022 from US $28 billion currently.
IT
BPM
E R&D and softwareproducts
 Global delivery model

1 Indian software product industry

is expected to reach US $100
billion by 2025.

Rise of onshoring

4
Onshore revenue of
Indian IT industry has
grown from around 48% in
2011–12 to 55.2% for the
quarter ended June 2019.
Growth in non-linear

TRENDS
models
2 India’s IT sector is gradually
moving from linear models to
non-linear ones. Large players gaining
advantage
5 Of the total revenue, about
80% is contributed by 200
large and medium players.
New technologies
Disruptive technologies such as
3 cloud computing, social media and
data analytics are offering new
avenues of growth across verticals
for IT companies
 Most lucrative sector for investments

1
The computer software and hardware sector in India
attracted cumulative FDI inflow worth US $44.91 billion
between April 2000 and March 2020 according to the data
released by Department for Promotion of Industry and
Internal Trade(DPIIT).

Emergence of tier II cities

TRENDS 2 Tier II and tier III cities are increasingly

gaining traction among IT companies,
aiming to establish business in India.

Changing business dynamics

India’s IT market is experiencing a significant
3 shift from few large-size deals to multiple
small-size ones. The number of technology
start-ups is expected to reach 50,000, adding to
around 2% to GDP
 Strategies Adopted

Fast-growing sectors within the BPM Promotion of R&D Product and pricing differentiation
domain

Knowledge services, data analytics, legal R&D forms a significant

services, business process as a
service(BPaaS), cloud-based services.
portion of companies’
expenses, which is critical
when margins are in pressure,
to promote innovations in the
changing landscape.
The companies are working towards product
differentiation through various other services
by branding themselves. Indian IT firms have
started to adopt pricing strategies to compete
with Global firms like IBM and Accenture
 ADVANTAGE INDIA
GROWING DEMAND
Strong growth in demand for export from new verticals.
Rapidly growing urban infrastructure
Expanding economy to propel growth in local demand.
India‘s IT sector market is projected to reach US $100 billion
by 2025
IT IN INDIA
COMPETITIVE ADVANTAGE
Low-cost advantage by being 5-6 times inexpensive than the
US.
A preferred destination for IT&BPM
Leader in the global sourcing industry with 55% market
share.
GLOBAL FOOTPRINTS
Indian IT firms have delivery centres across the world.
IT&BPM industry is well diversified across verticals such as
BFSI, telecom and retail.
Increasing strategic alliance between domestic and
international players to deliver solutions across the globe.
POLICY SUPPORT
Tax exemption of three years in to start-ups under ‘Start up
India’.
Liberal system for raising global capital, funding for seed
capital and growth.
Government India released the National Policy on Software
Products 2019 to develop India as a software product nation
 Threat to new
Entrants
LOW

Bargaining Power
Industry Rivalry of the Customer
HIGH LOW/MEDIUM

Porter’s five forces

Bargaining Power
Threat of of the Suppliers
Substitutes
Software – HIGH
LOW
Hardware - LOW
MICRO VIEW OF IT/ITES
INDUSTRY
Leading companies in the IT industry
Tata consultancy services
TCS is India’s largest IT outsourcing
company.

It is a global leader in IT services,

digital, and business solutions.

TCS had a revenue of Rs. 162000 crores

in FY 2020.

Its services include consulting, analytics and

insights, IoT, Blockchain and Enterprise
Applications.
 Infosys

Infosys had a revenue of Rs.

Infosys is one of the largest IT 93594 crores in FY 2020.
companies in the world.

Services provided by Infosys include

The company has more than 37 Digital Commerce, Applied AI,
years of experience with Engineering Services and Cyber
operations in 46 countries and Security.
more than 2,00,000 employees
WIPRO

1 Wipro Limited is a global leader in information

technology, consulting, and business process services.

2 It had a revenue of Rs. 63826.6 crore in FY 2020

The services provided by Wipro include Consulting,

3 Enterprise Ops Transformation, Digital Operations and
Platforms and Infrastructure Services.
 HCL Technologies
HCL Technologies is a HCL offers an
next-generation global integrated portfolio of
technology company products and services
that helps enterprises through three business
reimagine their units. 
businesses for the
digital age.

These three business

units are IT and
The company had a Business Services
revenue of Rs. 71265 (ITBS), Engineering
crore in FY 2020. and R&D Services
(ERS), and Products
and Platforms (P&P).
 Tech Mahindra

The services provided by

Tech Mahindra is a TechMahindra include
subsidiary of the Infrastructure and Cloud
Mahindra group Services, Integrated
providing information Engineering Solutions,
technology (IT) Network Services and
and business process Business Excellence
outsourcing (BPO) Services.
services

It had a revenue of Rs. 30860.1

crore in FY 2020.
REVENUE COMPARISON
MARKET SHARE
 Reasons for success of TCS

Comprehensive Portfolio with

Brand
end-to-end technology service
offering.

Impressive Client
Focus on Innovation. Base.

Balanced Revenues Balanced Revenues

across multiple service across multiple
portfolios. geographies
5-year sales growth
5-year net profit growth
Why has HCL Technology been successful
in recent years?
Thank
You