The IT market in India is a lucrative sector, and ranks fourth in India’s total FDI share. Rising investments in IT have been a key trend, resulting in business growth.
The rapid increase in adoption of cloud technologies, shared services, and IT healthcare solutions are steadily gaining momentum here. According to TechNavio, the IT Market in India is expected to grow at a CAGR of 12.44 percent from 2014 to 2018.
Currently, the market is witnessing an increasing trend of SMAC technology implementation by enterprises. These provide a platform for SMEs to compete with larger players. Foraying into the future, the market is expected to warm up to an increasing involvement of e-commerce in the growth of IT.
It is a vibrant market and TechNavio analysts have chosen to highlights three key trends that are driving The IT Market in India.
New Technologies
Promoting online shopping is a key strategy in changing the way customers shop for products and services. With increased internet penetration and proliferation of internet users, online shopping is expected to set a trend. This trend is anticipated to be a key enabler for IT growth in the Retail segment. India also provides huge business opportunities for wearable technology, such as smart watches and fitness monitors.
New Technologies such as robotics, artificial intelligence, 3-D printing, social media, online retailing, cloud computing, e-commerce, and nanotechnology are emerging trends in the IT market in India.
Innovation in the form of technology can be seen in examples like:
- E-toilet from ERAM, a complete cycle approach for sustainable sanitation
- RidingO, an online carpooling platform
- Nano Ganesh, a remote operation of irrigation pumps via mobile technology
- Saral Money, a micro ATM for payment and similarly many others are emerging in this market
Expansion in Smartphones and Tablets User Base
Plummeting prices of smartphones and attractive discounts from online retailers, partnerships with mobile phone companies, are expected to drive the IT market further. Increasing use of smartphones and other gadgets are expected to boost the growth of IT. Increased adoption of IT in the Education and Healthcare sectors has also increased the case of IT enhanced usage of tablets and smartphones.
Evolution in Non-linear Models
Evolution of non-linear models among IT companies is another emerging trend in the IT market in India. In recent times, IT companies in India have been following the five emerging non-linear models to accelerate their non-linear growth.
The five non-linear models include cloud computing, non-linear pricing models, platform BPOs, intellectual property, and M&A. This aids in breaking the link between revenue growth and headcount, thereby increasing profits.
