People 01.02.2017 Growth of IT industry in India and its Future Prospects The IT industry in India is a key part of the country’s economy. India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world. In the financial year 2019, this industry in India generated an annual revenue close to 180 billion U.S. dollars, a significant increase from the generated revenue ten years ago. The contribution of the service sector in India to the country’s GDP is a lion’s share of over 60%. However, it still employs only 25% of the labour force.Some of the biggest IT service providers in India include IBM and HP, as well as Indian-based companies, Wipro and Tata Consultancy Services (TCS). Overall, in 2017, the industry provided direct employment to almost four million people and indirect employment to more than ten million. TCS revenue reached almost 1.5 trillion Indian rupees in 2019, making it the largest India-based IT services company that year. This ranks it as one of the world’s largest IT services providers.In today’s scenario leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain, artificial intelligence to clients using innovation hubs, research and development centres, in order to create differentiated offerings. Nasscom has launched an online platform which is aimed at up-skilling over 2 million technology professionals and skilling another 2 million potential employees and students. Some of the major initiatives taken by the government to promote IT and ITeS sector in India are as follows:The government has identified Information Technology as one of 12 champion service sectors for which an action plan is being developed. Also, the government has set up a Rs 5,000 crore (US$ 745.82 million) fund for realising the potential of these champion service sectors.In the Budget 2019-20, the Government of India announced plans to launch a national programme on AI* and setting up of a National AI* portal.National Policy on Software Products-2019 was passed by the Union Cabinet to develop India as a software product nationThe growing ability of machine learning to replace human workers is also a challenge. A recent McKinsey report reckons that within a few years, up to half of the 3.9 million Indians currently working in the IT sector will become irrelevant. However, even as workers are displaced, there will be growth in demand for work and consequently, jobs due to several catalysts of demand for work, including rising incomes, increased spending on healthcare, and technology development and deployment. These scenarios showed the largest gains will be in emerging economies such as India, where the working-age population is already growing rapidly.India is making a conscious effort to translate its growing economic clout into 'soft power' on the world stage. Tech trends are promising in India. It has again moved up the Global Competitiveness Report’s rankings on technological readiness – albeit from a low base, still only 108th in the world – on the back of improvements in indicators such as internet bandwidth per user, mobile phone and broadband subscriptions and internet access in schools.India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Export revenue of the industry is expected to grow 7-9 per cent year-on-year. The industry is expected to grow to US$ 350 billion by 2025.