Digital Excellence: The New Normal
India is emerging as the hub for “Digital Skills”. The industry is the largest employer within the private sector. In FY20, the industry employed over 4 mn personnel directly. Further, every job in the technology sector had a multiplier effect leading to the creation of 2.5 indirect jobs in the adjacent sectors. India is transforming into a digital economy with over 750 mn internet subscribers; only second to China.
Amid the lockdown, the IT & BPM sector was one of the quickest to adapt to remote work culture. During a global pandemic, the hiring intent came with the benefits of work from home for more than 2 mn IT professionals working remotely.
The country’s cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market.
The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats (village council) in the country with high-speed broadband.
Indian data center industry’s capacity to double by 2023.
Up to 100% FDI is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services, under automatic route
Industry Scenario
In terms of FDI inflow, the computer software and hardware sector attract the second-highest FDI. Between April 2000 and March 2021, it attracted over US$ 71 billion.
The Indian data center industry has attracted an investment of over $396 mn in 2020. It is estimated that per capita data consumption will hit 25GB/month by 2025.
