The Indian IT industry is expected to touch the $300-$350 billion revenue mark over the next five years growing 10% a year. This will mean that the $194 billion Indian tech industry will be growing at a much faster clip than the 7.5% growth rate registered over the last five years. This growth of the Indian IT industry will come primarily on the back of digital services, which currently accounts for 30% of the industry’s revenue, but its share is expected to go up to 50% over the five years totalling to around $170 to $200 billion of revenue for the industry.
To achieve the expected growth, there will have to be “multiple concerted actions” by the industry which will include investment by the Indian service providers in building and scaling digital technologies to create differentiated and scalable offerings at a global level. It will also include accelerating investments in reskilling the talent in new growth areas such as enterprise SAS ecosystem, Cybersecurity, data, artificial intelligence, 5G, IoT, product engineering etc. The view that technology is leading their recovery from the COVID pandemic. “We believe that technology spending is going to bounce back far faster than it has ever done from previous crises, and as a result we’re seeing again that acceleration and spending “the bounce back was visible in the order book of the actual work coming to all the industry participants lately.
The biggest trends that will shape the future of technology will be that tech intensity will increase from 3% of revenue to 5% of revenue. This means that digital natives or reinventors will account for 75% of enterprise tech spending in the next five years. To capture this growth, service providers will have to consider changing their focus to new opportunity sets. Also, tech is accelerating fundamental shifts and business models worldwide. First is direct to consumer or direct to stakeholders and the second is ecosystems. These new business models are expected to account for about $150 billion opportunity for service providers going forward. Also, cloud, AI, and cybersecurity will accelerate the pivot to digital.
The Tel-Aviv ecosystem is ranked fifth worldwide, and first among sites located outside of the US. Tel Aviv also ranks first in accessibility to the global market, with double the extent of international clients compared to Silicon Valley. Technological innovation has played a key role in the success of the local hi-tech industry over the last few decades. Israeli companies contribute greatly to shaping all aspects of the technological world of tomorrow, from computer chips to popular applications. Many leading international hi-tech companies have established R&D centers in Israel. Companies such as Intel, Microsoft, Cisco, IBM and Apple chose Israel as the site for their first development centers outside of the US. The Israeli hi-tech industry has many of the qualities of a business ecosystem.
Relevant companies, interested to learn more on Israel innovative technology are invited to contact the Trade and Economic Department at the Israeli Consulate General in Bengaluru.
Contact: Ms. Kavitha S
Trade Officer -Trade and Economic Mission,
Consulate General of Israel to South India (Bangalore).
Tel: +91-80-49406515. email@example.com
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