Digital tech, start-ups to drive IT-BPM growth
Digital technologies—cloud, mobility, Internet of Things (IoT), social and big data—are changing business models, says Nasscom report
The information technology-business process management (IT-BPM) industry may have lowered its growth forecast, with revenue expected to touch $143 billion in fiscal 2015-16, but it is clear that it won’t be traditional IT services that will drive growth for the industry that is targeting $350 billion by 2025. This trend is evident from Cognizant Technology Solutions Corp.’s subdued December quarter earnings, a warning bell to investors in Indian IT stocks.
On a positive note, though, it is the confluence of digital technologies—cloud, mobility, Internet of Things (IoT), social and big data—that are changing business models. The rapidly growing start-up ecosystem, the government’s vision of driving digitization and India’s consumer economy will drive growth, according to a new report by software industry body Nasscom.
Digital, for instance is expected to contribute as much as 14% to the revenue of leading IT firms in 2015-16. Further, the industry is estimated to have employed more than 250,000 digitally skilled staff. Digital mergers and acquisitions (M&As) saw a jump in volume and value, crossing $2 billion in fiscal 2016, growing three times from a year earlier. Increased emphasis on design, creativity, agility and customer experience will lead India to strengthening its position further and presenting itself as the ideal digital solutions partner to the world, the Nasscom report said.
India’s start-up landscape, too, is now a global success story with young start-ups and unicorns making a difference in high-impact areas, the report added. With over 4,200 start-ups, India is now the third largest start-up base in the world, with more than 1,200 start-ups being created every year, aided by funding from more than 150 active venture capital and private equity firms and over 110 incubators and accelerators.
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