IBEF-印度IT与IT行业报告-2019 3-34页 pdf

For updated information, please visit IT continues to be a leader in the global sourcing industry with 55 per cent market share. Tax exemption of three years in a block of seven years to start-ups under Startup India. More liberal system for raising global capital, funding for seed capital and growth and ease of doing business, etc. have been addressed. ADVANTAGE INDIA Note: SEZ stands for Special Economic Zone, BFSI stands for Banking, Financial Services and Insurance, E stands for Estimate, F stands for Forecast, AI* - Artificial Intelligence Source : Nasscom, News sources In the Interim Budget 2019-20, the Government of India announced plans to launch a national programme on AI* and setting up of a National AI* portal. In February 2019, the Government of India released the National Policy on Software Products 2019 to develop India as a software product nation For updated information, please visit IT exports rose at a CAGR of 12.26 per cent during FY0918. Export of IT services has been the major contributor, accounting for 57.00 per cent of total IT exports (including hardware) during FY18 BPO and E R over 62 per cent of Indian IT-BPM exports were absorbed by the US during FY18. Non US-UK countries accounted for just 21 per cent of total Indian IT-BPM exports during FY18. As of FY18, US and UK are the leading customer markets with a combined share of nearly 80 per cent . However, there is growing demand from APAC, Latin America and Middle East Asia. Being the low cost exporter of IT services, India is going to attract more markets in other regions in the same manner it tapped US markets. 62 17 11 8 2 USUKEurope (ex-UK)AsiaRoW Geographic breakup of export revenue in 2017-18 (percentage) Source: Nasscom, Department of Electronics and IT Annual Report Note: ROW is Rest Of the World, APAC is Asia Pacific, Data update for FY19 may be available by April 2019 For updated information, please visit IT TIER II CITIES EMERGE AS NEW CENTERS Source: EY, Nasscom Note: SEZ Special Economic Zone, STPI (Software Technology Parks of India) ParametersSTPISEZ Term10 years15 years Fiscal benefits 100 per cent tax holiday on export profits Exemption from excise duties and customs 100 per cent tax holiday on exports for first 5 years Exemption from excise duties and customs Location and size restrictions No location constraints 23 per cent STPI units in tier II and III cities Restricted to prescribed zones with a minimum area of 25 acres IT-SEZs have been initiated with an aim to create zones that lead to infrastructural development,exports and employment As of January 22, 2019, there were 231 exporting SEZs across the country Over 50 cities already have basic infrastructure and human resource to support the global sourcing and business services industry. Some cities are expected to emerge as regional hubs supporting domestic companies Software Technology Parks of India (STPI) has set up 57 centres across the country which provide single window clearance and infrastructure facilities. Under STP scheme, STP units can avail ExciseDutyexemptionsonprocurementofindigenously manufactured goods. 1,821 1,615 175 3,230 - 1,000 2,000 3,000 4,000 5,000 6,000 20082018 Tier I locationsTier II locations IT sector employment distribution in Tier I and Tier II/III cities For updated information, please visit IT & ITeS 24 TREMENDOUS GROWTH OF GLOBAL INHOUSE CENTRES Number of GICs in India 180 450 700 760 825 1,025 1,050 1,100 1,140 - 200 400 600 800 1,000 1,200 200020052010201220132015201620172018* Source: Zinnov, Nasscom, Global In-House Centres (GIC), also known as captive centres, are one of the major growth drivers of the IT-BPM sector in India. They also operate in engineering services and software product development. As of March 2018, there were over 1,140 GICs operating out of India. Revenue of GICs of India has increased at a CAGR of 15.18 per cent between FY03-FY18 to touch US$ 25.0 billion in FY18. The impact of the segment goes beyond revenue and employment, as it helps in developing India as a R&D hub and create an innovation ecosystem in the country Withinthe captive landscape, Engineering Research and Development/Software Product Development (ER&D/SPD) is the largest sub-segment. To drive innovation in new technology, Asian firms have started setting up their research and development (R&D) units, also known as GICs, in India. Note: 2018* - Data taken from NASSCOM Strategic Review 2018, As of end of financial year, Data update for FY19 may be available by March 2019 Revenue of GICs in India 3.0 10.7 11.5 15.5 19.4 21.5 25.0 0 5 10 15 20 25 30 FY03FY09FY10FY14FY15FY16FY18 CAGR 15.18% For updated information, please visit IT & ITeS 25 IMPRESSIVE GROWTH PROSPECTS SUSTAIN PE AND VC INTEREST Source: The Indian Private Equity and Venture Capital Association Note: Data for first quarter of both years has been calculated by deducting Q2 investments from H1 investments, LHS Left Hand Side axis, RHS Right Hand Side axis PE and VC investments in IT & ITeS (US$ million) 3200.0 2400.0 3200.0 1400.0 1000.0 2600.0 3200.0 2400.0 79.0 71.0 68.0 96.0 75.0 73.0 55.0 53.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 3500.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 PE Investments (LHS)VC Investments (RHS) IT & ITeS is the leading sector in receipts of private equity (PE) investmentsin India. PE investmentsin the sector stood at US$ 2,400 millionin Q4 2018. Venture Capital (VC) investments in the IT & ITeS sector stood at US$ 53.0 million during Q4 2018. For updated information, please visit IT & ITeS 26 Government,healthcare,mediaand utilitiestogetherhaveITspendof approximately US$ 190 billion, but account just 8 per cent of Indias IT revenue Non-lineargrowthduetoplatforms, products and automation Emergingverticals(retail,healthcare, utilities) are driving growth BRIC nations, continental Europe, Canada andJapanhaveITspendingof approximatelyUS$ 380420 billion Adoption of technology and outsourcing is expected to make Asia the 2nd largest IT market SMBs have IT spend of approximately US$ 230250 billion, but contribute just 25 per cent to Indias IT revenue The emergence of new service offerings and business models would aid in tapping market profitablyand efficiently NEWER GEOGRAPHIES AND VERTICALS PROVIDE HUGE OPPORTUNITIES New verticals New customer segments New geographies Source: International Data Corporation (IDC), Nasscom Note: SMB - Small and Medium Businesses For updated information, please visit IT & ITeS 27 EXPANSION OF FOCUS AREAS TO AID FUTURE GROWTH (1/2) Market size of other progressing verticals by 2020 (US$ billion) Source: Nasscom, Gartner Note: SMB - Small and Medium Business Technologies, such as telemedicine, health, remote monitoring solutions and clinical information systems, would continue to boost demand for IT service across the globe IT sophistication in the utilities segment and the need for standardisation of the process are expected to drive demand Digitisation of content and increased connectivity is leading to a rise in IT adoption by media RBI is executing a plan to reduce online transaction costs to encourage digital banking in India The rollout of Fifth Generation (5G) wireless technology by telecommunication companies is expected to bring at least US$ 10 billion global business to Indian IT firms by 2019-25 17 25 58 90 250 050100150200250300 MediaUtilitiesHealthcareGovernmentSMB For updated information, please visit IT & ITeS 28 EXPANSION OF FOCUS AREAS TO AID FUTURE GROWTH (2/2) Emerging geographies would drive the next growth phase for IT firms in India BRIC would provide US$ 380420 billion opportunity by 2020 Focus on building local credible presence, high degree of domain expertise at competitive costs and attaining operational excellence hold key to success in new geographies Emphasis on export of IT services to current importers of other products and services Country IT spendIndias penetrationKey segments CanadaUS$ 63 billion1.5 per centEnterprise applications, cyber security, healthcare IT Europe US$ 230 billion1.5 per centIT sourcing, BPM, IS outsourcing, CAD JapanUS$ 235 billion1 per centCRM, ERP, Salesforce automation, SI SpainUS$ 26 billion1.5 per centIT sourcing, SI MexicoUS$ 29 billion4 per centIT sourcing, BPM BrazilUS$ 47 billion2 per centLow level application management, artificial intelligence, R D ChinaUS$ 105 billion1 per centSoftware outsourcing, R D AustraliaUS$ 48 billion4 per centProcurement outsourcing, infrastructure software and CAD Countries offering growth potential to IT firms Source: Nasscom For updated information, please visit IT & ITeS 29 IT & ITeS KEY INDUSTRY ORGANISATIONS For updated information, please visit IT & ITeS 30 INDUSTRY ORGANISATIONS Address: Electronics Niketan, 6, CGO Complex, Lodhi Road, New Delhi - 110 003 Phone: 91 11 2436 9191 Fax: 91 11 2436 2626 E-mail: mljofficegov.in Website: .in/ Ministry of Electronics and Information Technology (MeitY) Address: 155, Okhla Phase III, Okhla Industrial Area, New Delhi, Delhi 110 020 Phone: 91 11 4748 0000 E-mail: info Website: https:/www.escindia.in/ Electronics and Software Exports Promotion Council (ESC) Address: Ninth Floor, NDCC-II,Jai Singh Road (Opposite Jantar Mantar), New Delhi 110 001 Phone: 91 11 2343 8188 Fax: 91 11 2343 8173 Website: https:/www.stpi.in/ Software Technology Parks of India Address: International Youth Centre Teen Murti Marg, Chanakyapuri, New Delhi 110 021 Phone: 91 11 2301 0199 Fax: 91 11 2301 5452 E-mail: infonasscom.in Website: https:/www.nasscom.in/ National Association of Software and Services Companies (NASSCOM) For updated information, please visit IT & ITeS 31 IT & ITeS USEFUL INFORMATION For updated information, please visit IT & ITeS 32 GLOSSARY APAC: Asia Pacific BFSI: Banking, Financial Services and Insurance BPM: Business Process Outsourcing CAGR: Compounded Annual Growth Rate C U: Construction and Utilities FDI: Foreign Direct Investment GOI: Government of India INR: Indian Rupee IT & ITeS: Information Technology-Information Technology Enabled Services NAC: Nasscom Assessment of Competence RoI: Return on Investment ROW: Rest of the World SEZ: Special Economic Zone SMB: Small and Medium Businesses STPI: Software Technology Parks of India T M: Telecom and Media T T: Travel and Transport US$ : US Dollar UT: Union Territory Wherever applicable, numbers have been rounded off to the nearest whole number For updated information, please visit IT & ITeS 33 EXCHANGE RATES Exchange Rates (Fiscal Year)Exchange Rates (Calendar Year) Year INRINR Equivalent of one US$ 20040544.95 20050644.28 20060745.29 20070840.24 20080945.91 20091047.42 20101145.58 20111247.95 20121354.45 20131460.50 2014-1561.15 2015-1665.46 2016-1767.09 2017-1864.45 Q1 2018-1967.04 Q2 2018-1970.18 Q3 2018-1972.15 YearINR Equivalent of one US$ 200544.11 200645.33 200741.29 200843.42 200948.35 201045.74 201146.67 201253.49 201358.63 201461.03 201564.15 201667.21 201765.12 201868.36 Source: Reserve Bank of India, Average for the year For updated information, please visit IT & ITeS 34 DISCLAIMER India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBE