Indian IT sector set to grow to $167 billion this FY; robotics, Internet of Things boosting profits

Revenues of India’s Information Technology and Business Process Management (IT-BPM) sector is all set to hit $167 billion for the ongoing financial year 2018-19, an increase of about 8% from $154 billion in the last financial year 2017-18, said industry body NASSCOM. IT-BPM industry has about a 37% share in the global outsourcing market.

While speaking at ‘BPM Strategy Summit 2018 in Bengaluru’, NASSCOM vice chairman Keshav R Murugesh said that the sector is capitalising on re-skilling and emerging technologies, and is increasingly innovating to emerge as the hub for digital solutions. During the summit, NASSCOM highlighted how the newer technologies like digital communications, Internet of Things, cognitive computing, robotic process automation (RPA) are helping the industry to boost its profitability and competitiveness.

The apex body also highlighted how speed, security and operational efficiencies can be enhanced with the adoption of technologies like Blockchain and artificial intelligence (AI).

In July, IT and electronics minister Ravi Shankar Prasad had said that IT-BPM industry is expected to hit $350 billion by 2025. While speaking at an event in London, he had also expressed satisfaction on the IT sector’s growth, despite a weak global economy.

Further, the apex body added that the concerns on data privacy requirements and compliance with the European Union’s GDPR as a regulatory requirement are needed to be addressed. Back office segment, which has the largest base in the world, has about $32.5 billion of revenue with 1.2 million headcounts across the country.

The IT-BPM industry, with about 17,000 firms across the country, offers a wide range of services to address customers’ demands. The industry contributed 8% to the country’s GDP in the financial year 2017-18.

Meanwhile, Ravi Shankar Prasad on Thursday met with top leaders of IT industry and sought their active involvement and contribution in various social initiatives. He also said that the Prime Minister Narendra Modi will hold a town hall in Delhi with technology professional across the country on October 24.