Batch: M4

Group 5: Apeksha Das, Bharath Kumar, Niranjan Shekhawat, Prateek Awasthi, Priyanka Das

Sector: IT

Introduction:

The information technology (IT) market consists of sales of information technology (IT)
services and related goods by entities (organizations, sole traders and partnerships) that
apply computers, computer peripherals and telecommunications equipment to store,
retrieve, transmit and maneuver data. The IT market involves services such as computer
networking, broadcasting, systems design services and information distribution technologies
like television and telephones and other equipment used during the process. The IT market
also includes sales of goods such as computers, computer peripherals and
telecommunications equipment which are used in providing IT services. The IT market is
segmented into IT services; computer hardware; telecom and software products.

The demand for cloud computing services is expected to drive the demand for IT services
during the forecast period. Many companies are now choosing applications hosted in the
cloud for their day-to-day operations. For example, according to statistics provided by
hostingtribunal.com, 60% of computing workloads were running in the public cloud in 2019.
Similarly, 94% of enterprise workloads are expected to be processed by cloud data centers
in 2021. Companies are also opting for cloud-based data storage; thus boosting the demand
for IT services.

Revenue statistics:

India is the world's largest sourcing destination with largest qualified talent pool of technical
graduates in the world. According to National Association of Software and Service
Companies (Nasscom), the Indian IT industry’s revenue is estimated to reach US$ 194 billion
in FY21, an increase of 2.3% Year on Year. The sector is the largest employer within the
private sector. According to Gartner estimates, IT spending in India is estimated to reach
US$ 93 billion in 2021 (7.3% Year on year growth) and further increase to US$ 98.5 billion in
2022.

This push towards cloud services has boosted hyper-scale data centre investments, with
global investments estimated to exceed ~US$ 200 billion annually by 2025. India is expected
to gain a significant share in the global market, with the country's investment expected to
hit ~US$ 5 billion annually by 2025.

In Budget 2021, the government has allocated Rs. 53,108 crore (US$ 7.31 billion) to the IT
and telecom sector.
The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry
are expected to increase by 1.9% to reach US$ 150 billion in FY21.

The computer software and hardware sector in India attracted cumulative foreign direct
investment (FDI) inflows worth US$ 71.05 billion between April 2000 and March 2021. The
sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of
Industry and Internal Trade (DPIIT).

IT sector growth in last 10 years:

IT sector in India have grown immensely since last 10 years at a rate of 28 % annually.

With the rise of digitalization in corporate and almost every type of organization, demand of
products of IT sector and increased, people use these products like software, devices and accessories
for their personal as well as professional use like, developing some applications for different
businesses, improving skills and easing up the operation.

It sector services are the big part of service industry in India, this also increased the growth rate.Out
of the global IT sourcing market, India accounts for 51% of it.

Here is the graph that shows the growth over the years of IT sector in India
Perspective change due to pandemic:

The pandemic has increased the pace of technology adoption across the globe as clients and their
customers move to a digital environment. IT are now adapting their businesses to the new normal as
they feel the need for more agile digital solutions with a faster time to market. Digital
transformation and migration to the cloud have become the need of the hour as it makes accessing
and maintaining data from remote work places easier and quicker.

Agents of transformation: Agents of transformation refers to a new generation of technologists who

possess all the personal and professional skills required to build resiliency throughout their
organizations. Their primary objective is to enable digital transformation and deliver positive
business outcomes such as nurturing a culture of innovation, effectively leveraging tools and
technologies, and providing excellent leadership.

Workforce Transformation: The events of 2020 made every organization re-evaluate their operating
models irrespective of the industry domain, organization size, and location. The factors which made
workforce work effectively during 2020 are : Enabling remote work for the long-term, Closing the
skills gap: Developing a tech skill strategy, Increasing agility: Embracing Agile models.

A big takeaway from 2020 and 2021 is that digitally mature organizations focus on technological
investments that improve the digital experience and create revenue (AI/ML, big data and data
analytics, and other emerging technologies such as 5G) while less mature organizations are held
back by legacy systems, limiting their ability to enhance customer offerings.

Immediate Impacts to the future of work:

a) Work from home will now be a real option for companies or employees: Businesses that
once resisted the work from home concept due to fears of data security or higher hardware
and network costs will find there is no escape now.
b) The proliferation of online tools will replace a physical presence: Increasing use of video
conferencing tools, virtual reality, and digital avatars, etc., will enable and further promote
virtual meetings and collaboration.
c) Further acceleration of the gig-economy: Firms will realize that work is becoming more
decentralized and gig-oriented, and freelancers can bring desirable skill sets to the table.
They can use gig workers to manage demand spikes, economic slow-downs, etc., creating a
better balance of freelancers and permanent workers as a part of their overall talent
strategy.

Top IT companies in the world:

1. Microsoft Corporation

Microsoft Corporation is headquartered in Redmond, Washington, and is one of the largest

companies in the world and lead a list of Top 10 IT Companies.
Headquarters: Redmond, Washington, United States
Revenue: $125 billion Net Income: $39.2 Billion Number of employees: 166.475
2. IBM
International Business Machine (IBM) is an American MNC and is operational in more than 150
countries.
Headquarters: Armonk, New York, United States
Revenue: $ 77.1 billion Net Income: $11.4 Billion Number of employees: 345.900

3. Accenture

Accenture has been listed in fortune global 500 companies and is one of the largest Information
Technology companies.
Headquarters: Dublin, Ireland
Revenue: $40 Billion Net Income: $11 Billion Number of employees: 569,000

4. Oracle

Oracle corporation headquarter is located in Redwood Shores California and it is one of the
renowned American MNC.
Headquarters: Austin, Texas, United States
Revenue: $40 Billion Net Income: $11 Billion Number of employees: 135,000
5. SAP

SAP has been able to successfully build its image as world leader in enterprise applications in terms
of software and software related services.
Headquarters: Walldorf, Germany
Revenue: $29.9 Billion Net Income: $3.67 Billion Number of employees: 102,430

6. Hewlett Packard Enterprise

Hewlett Packard Enterprise is one of the leading technology firm that enable its customers to remain
robust and upfront to changing environment.
Headquarters: Spring, Texas, United States
Revenue: $29.1 billion Net Income: $1.05 Billion Number of employees: 53,000

7. Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) has been ranked as no. 1 Indian Multinational IT firm which generate
its revenue from various domains.
Headquarters: Mumbai, India
Revenue: $22 Billion Net Income: $4.4 Billion Number of employees: 750,000

8. Cognizant

Cognizant is one of the leading IT services companies which is helping clients’ to transform their
existing business, operating and technology models with the rapidly changing digital technology.
Headquarters: Teaneck, New Jersey, U.S
Revenue: $ 16.8 Billion Net Income: $1.8 Billion Number of employees: 290,000

9. Capgemini

Capgemini is one of the leading IT companies in the world having a strong global presence.
Headquarters: Paris, France
Revenue: $ 15.22 Billion Net Income: $870 Million Number of employees: 270,000
Some major hubs consists of Bangalore, Hyderabad, Pune, Chennai, Delhi NCR.
India’s digitally skilled pool has grown over the period and accounted for around 75 percent of global
digital talent. India’s four large IT companies (TCS, Infosys, Wipro, HCL Tech) have employed more
than one million employees. New IT-based technologies such as telemedicine, remote monitoring,
etc. are expanding and boosting the demand in the digital economy. The rollout of fifth-generation
(5G) communication technology, growing adoption of artificial intelligence, Big Data analytics, cloud
computing and the Internet of Things (IoT) will further expand the size of the IT industry in India. As
the size of India’s digital economy is increasing, IT companies are establishing their centre in tier II
and tier III cities which will further enhance the growth and reduce the existing disparities.

References:

1. https://www.thebusinessresearchcompany.com/report/information-technology-global-
market-report-2020-30-covid-19-impact-and-recovery
2. https://www.thebusinessresearchcompany.com/report/information-technology-global-
market-report-2020-30-covid-19-impact-and-recovery
3. https://www.google.com/url?sa=i&url=https%3A%2F%2Fdiplomatist.com%2F2020%2F0
8%2F29%2Fit-industry-boosting-indias-
growth%2F&psig=AOvVaw2_itXRWwwjoyGEjvEee-
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MCFQAAAAAdAAAAABAD
4. https://alertify.eu/top-10-information-technology-it-companies/
5. https://www.wipro.com/blogs/vignesh-balakrishnan/beyond-the-pandemic-key-
priorities-for-agility-and-growth/
6. https://www.wipro.com/banking/covid-19-the-future-of-work-is-here-for-good/
7. https://www.tcs.com/perspectives/articles/digital-transformation-business-resilience
8. https://www.simplilearn.com/top-technology-trends-and-jobs-article
9. https://www.quora.com/What-is-the-present-situation-for-the-IT-sector-in-India
10. https://diplomatist.com/2020/08/29/it-industry-boosting-indias-growth/