Why will India be the biggest market for software development companies in the next 5yrs? India is a country with a huge population. Though a huge part of the population is illiterate, the country is growing gradually and developing at a steady rate. The information technology center is one of the most important sectors where the development is very rapid.
There are different sources of education in the country though there aren’t half as much source of income for the entire population. Thus the competition creates an imbalance which leads to a huge part of the population trying to become better than the others. The software engineers can be taken up as an example.
Companies from all the different advanced countries outsource their jobs to India to make use of the talent pool. The information technology that can be found in India mostly consists of the IT services and business process outsourcing (BPO). This sector is one that has contributed to the growth in the GDP of the country. The GDP had been 1.
2% in 1998 and was about 7.5% in 2012. About US $160 worth of revenues was aggregated by the sector. The export revenue stood somewhere around US $99 billion and the domestic revenue was somewhere around US $48 billion and was growing at a rate of over 13%. More than 60% of the USA accounts for Indian IT exports.
The industry has created a huge global market in the country with the economic transformation of the country and has altered the perception of the country as a global economy. India is one of the most competitive in providing IT services and is about 3-4times cheaper than the US. The IT industry has also created significant demand in the Indian education sector, mostly for the engineering and the computer science sector. The size of the Indian marketThe internet industry would double and would be reaching about US $250 billion by 2020. The number of Internet users is rising and it is expected that it would reach about 730 million by 2020. It would be supported by the fast adoption of digital technology according to the report by National Association of Software and Services Companies, NASSCOM. The digital commerce market is also growing at a very rapid rate. It had grown by about US $ 34.
11 billion in December 2017 and according to the report by the Internet and Mobile Association of India. The Indian IT exports are also growing at a very rapid rate and would also be adding about 150,000 jobs in the market.The digital payments in India had risen by 55% in volume and 24.2% and this is mainly due to the technological developments in the country. There is also a large number of start-ups about 4200 at the present and is contributing to the Indian start-up ecosystem.
The country ranks third among the global start-up ecosystems. The public cloud services in the country are also growing. Some of the major factors that are causing this can be highlighted as follows: The Digital India movementThe Digital India movement is supposedly one of the main reasons why the country is becoming such a large market for the software development companies. It is one thing for the general population to try and get involved but when the government is trying to encourage this by taking steps, it can really change the total scenario. This huge scale shift to the digital platform is surely going to make life easier for the people. People would not need to go to the concerned authorities physically and can get the services done through the help of the digital platforms.
The movement is a campaign that had been launched on July 1, 2015, by the Prime Minister of India. The campaign ensured that the government services are made available to the citizens through electronic media through an improved online infrastructure. Internet connectivity is to be increased and the country would be made digitally empowered in the field of technology. The connection of the rural areas through the help of high-speed internet networks was also included in the initiative.
The campaign can be actually divided into three core components – delivering the government services, developing and securing the stable digital infrastructure, and the universal digital literacy.Though the vision of the campaign had been to induce a growth in the areas of electronic services and improving the manufacturing and job opportunities, it has surely improved the market for the software companies. The campaign is still boosting the market and it is sure to drive India to become the biggest software market for the software development companies. There are certain areas that the campaign had been targeting and all of them had been driving the growth of the digital market. Be it the public internet access programme, broadband highway, the electronics manufacturing industry or the others, each of them had been important in boosting the digital scenario of the country. As there is a growing need for the infrastructure, the software companies are finding a suitable market in the country.
The Digital TransformationThe benefits of the digital transformation are not something that can be seen to occur overnight. But it is certainly a very good step and would surely develop the myriad scenarios within the country. They would surely be greater in the long term though the costs that would be incurred in the near term are sure to be too much.
This is one of the reasons why the disruption that is caused by the technology would generally be resisted by the status quo interests. The general point would hold very specifically for demonetization and the implementation of GST.The digital infrastructure would reflect the roots in the world of the software development industry. The Aadhaar is one of the most important things in this regard and refers to the India Stack.
It would comprise multiple layers but they are defined by the different categories of government services. The Aadhaar is authenticated by the biometry of the people and it combines the best of the open technologies to build a system that would generate a unique number of services. The companies like Flipkart, PayTm, Ola and ZohoThere are various start-ups that have surely made it big in the Indian market and the ones that must be named are Flipkart, PayTm, Ola and Zoho. They have surely progressed a lot during the digitization of the country and have started to make it really big. Flipkart is an online shopping website that has been providing wonderful services in the country. The company has been offering services to all the remote parts and have certainly made the digital market more progressive.
The PayTm market is another of the important ones that must be mentioned. It not only offers a digital wallet but can help people to draw money directly from the bank and do transactions. It also offers a wonderful platform for booking tickets and can even offer online shopping.
Ola offers cab rides and even autos or bikes for a daily commute for the passengers who find it difficult to locate some other forms of communication. Zoho, on the other hand, offers cloud services and is transforming the entire digital scenario. All of these together have made it possible for the Indian software market to reach a stage where it can become the biggest software market for the software development companies in the next 5 years.