The 21st century is commonly recognized as the era of technology. This Information Age is marked by newer technologies which are in regard toward problem-solving and critical thinking. As far as our country is concerned, the future of the IT industry in India is quite bright, given the tremendous rate of globalization and industrialization.
The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025.
According to the National Association of Software and Service Companies (Nasscom), the Indian IT industry’s revenue touched US$ 227 billion in FY22, a 15.5% YoY growth. And according to Gartner estimates, IT spending in India is expected to increase to US$ 101.8 billion in 2022 from an estimated US$ 81.89 billion in 2021.
The Indian software program product industry is predicted to attain US$ 100 billion by 2025. Indian organizations are focused on investing across the world to expand their global footprint and enhance their international delivery centers. The IT enterprise introduced 4.45 lac new employees in FY22, bringing the overall employment in the region to 50 lac personnel.
Artificial intelligence and machine learning are set to determine the destiny of IT corporations in India. More and more corporations in India are opting for newer technologies to facilitate better functionality.
Governance around IT
Some of the major initiatives taken by the government to promote the IT and ITeS sector in India are as follows:
- In August 2022, the Indian Computer Emergency Response Team (CERT-In), in collaboration with the Cyber Security Agency of Singapore (CSA), successfully planned and carried out the “Synergy” Cyber Security Exercise for 13 countries to build network resilience against ransomware attacks.
- In June 2022, STPI Director General Mr. Arvind Kumar stated that exports through STPI units have increased from Rs. 17 crores (US$ 2.14 million) in FY92 to Rs. 5.69 lac crore (US$ 71.65 billion) in FY22.
- In May 2022, it was announced that Indians can now avail of their Digi-locker services through WhatsApp to get easy access to their official documents.
- In April 2022, the Indian Computer Emergency Response Team (CERT-In) issued Directions to strengthen cybersecurity in the country.
- In the Union Budget 2022-23, the allocation for the IT and telecom sector stood at Rs. 88,567.57 crores (US$ 11.58 billion).
- The government introduced the STP Scheme, which is a 100% export-oriented scheme for the development and export of computer software, including the export of professional services using communication links or physical media.
The Road Forward
India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India.
The Indian IT & business services industry is expected to grow to around INR 1700 crores (US$ 19.93 billion) by 2025. Spending on information technology in India is expected to reach over INR 1200 crores (US$ 144 billion) in 2023. The cloud market in India is expected to grow threefold to over INR 580 crores (US$ 7.1 billion) by 2022 with the help of the growing adoption of big data, analytics, artificial intelligence, and the Internet of Things (IoT).
As per a survey by Amazon Web Services (2021), India is expected to have nine times more digitally skilled workers by 2025.
In November 2021, Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution and Textiles, lauded the Indian IT sector for excelling in its competitive strength with zero government interference. He further added that service exports from India have the potential to reach INR 83000 crores (US$ 1 trillion) by 2030.
All in all, the future of the IT industry in India looks promising. While data security might be a big challenge, it will be exciting to witness the turn of events. Apart from the nation’s perspective, one can make the best of the changing IT industry by upskilling themselves.
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