The Indian technology and services industry is on track to hit $225 billion in revenues by 2020 and $350 billion (2025) from the current $118 billion (2014) according to the latest National Association of Software and Services Companies (NASSCOM) report – Perspective 2025: Shaping the Digital Revolution.
By Anup Jayaram
The Indian technology and services industry is on track to hit $225 billion in revenues by 2020 and $350 billion (2025) from the current $118 billion (2014) according to the latest National Association of Software and Services Companies (NASSCOM) report – Perspective 2025: Shaping the Digital Revolution.
The report is based on research conducted by McKinsey & Company for nearly a year. In 2014, international revenues are at $86 billion and domestic $32 billion. Out of the $350 billion in 2025, $280 billion would be from international revenues while the balance $70 million would be domestic revenues.
The big diference is that while achieving the first $100 billion in revenues, 3 million people were employed. The next $100 billion in revenues will mean an addition of 1.2-2 million people. The enterprise of the future will be based on innovative and disruptive technologies.
Driven by the adoption of digital technology, the total addressable market for global technology and business services will expand from $2.8 trillion (2014) to about $4 trillion by 2025, growing at an average annual rate of about 3.6%. The share of digital technologies―that includes social media, mobile applications, big data analytics, cloud and cyber security – will rise from 10% now to 35% (2020) and 60% (2025) of total spend. According to the report, innovative and disruptive technologies will shape the enterprise of the future.
The report states that technology is becoming a dominant factor in capex, making return on technology investment a key success factor for enterprises. With a $6 trillion cumulative technology capital investment globally, the economic landscape will be split among three types of enterprises: digital leaders and attackers, smart followers, and digital laggards. Each of these enterprises will operate a varied mix of disruptive, transformative, and traditional technology, mirrored in their investment choices.