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India is the world’s largest BPM destination 

IT AND BPM

India has emerged as the world’s largest BPM destination with the IT-BPM sector having a staggering share of 45% in the total Indian services export. The sector is the largest employer within the private sector, employing 3.9 million people. India is transforming into a digital economy with the second highest number of internet subscribers in the world.

The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats in the country with high-speed broadband. The country's cost competitiveness in providing IT services and favourable government policies and incentives to facilitate investments in the IT sector continues to be its unique selling proposition in the global sourcing market.

Industry Scenario

India is emerging as the hub for “Digital Skills”. USD 1.6 bn is spent annually on training workforce in the sector. The sector is the largest employer within the private sector, employing 3.9 mn people. India is transforming into a digital economy with 462 mn plus internet subscribers (second after China).

The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats in the country with high-speed broadband. Indian IT industry has more than 16,000 firms, of which 1,000 plus are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market.

Domestic market is the fastest growing tech-market in Asia-Pacific with growth of over 11% in 2016-17

By 2025, the Indian Information Technology and Business Process Management (IT and BPM) sector’s revenue is estimated to reach USD 350 bn

Highlights

  • 1
    Largest market share in global services sourcing industry
  • 2
    Second highest number of internet subscribers in the world
  • 3
    Third largest tech startup hub of the world

HIGHLIGHTS

RECENT INVESTMENTS

1. November 2016 Freshdesk, one of first companies from India to offer Software-as-a-Service (SaaS) to global companies, has raised USD 55 mn in the latest round of funding led by Sequoia Capital India and existing investor Accel Partners, estimating to value the company at USD 700 mn.

2. September 2016 - Reliance Industries Ltd (RIL) plans to set up entrepreneurship hubs in key cities and towns, and a USD 773.1 mn fund, under the name of Jio Digital India Startup Fund, to invest in technology based startups.

3. February 2016 - Apple Inc. plans to set up its first technology development centre outside the US in Hyderabad with an investment of USD 25 mn, which is expected to create 4,500 jobs

FDI Facts

64.1 bn FDI inflow (in USD) in the services sector (Banking, Insurance, Business, Outsourcing, R&D, Courier, Technology Testing Analysis) during April 2000 – December 2017

29.9bn FDI inflow (in USD) in the computer software & hardware from April 2000 – December 2017

6x Growth in FDI during 2014-17 viz-a-viz 2011-14