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STRONG ON CONSUMPTION<br />
Information Technology<br />
The Indian IT industry has been growing in double digits<br />
over the last 5 years, which is more than 2 times higher<br />
than the global IT growth. According to the IBEF estimates,<br />
the IT-BPM sector in India is estimated to expand at a<br />
CAGR of 9.5% to $300bn by 2020. The high growth is<br />
mainly driven by India being the largest sourcing<br />
destination, accounting for approximately 55% of the<br />
$146bn market. India's IT services is cost competitive as<br />
it is ~3-4 times cheaper than the US market, which<br />
continues to be its Unique Selling Proposition (USP) in<br />
the global sourcing market as shown below. However,<br />
India is gaining prominence in intellectual capital space<br />
with several global IT firms setting up their innovation<br />
centers in India and with increased usage of automation.<br />
According to the IBEF, India’s highly qualified talent pool of technical graduates is one of the largest in the world and is<br />
available at a cost saving of 60-70% to source countries. This large pool of qualified skilled workforce has enabled Indian<br />
IT companies to help clients to save $ 200bn in the last five years. India’s IT industry amounts to 12.3% of the global<br />
market, largely due to exports. Export of IT services accounted for 56% of total IT exports from India. The Business<br />
Process Management (BPM) segment accounted for 23.5% of total IT exports during FY15.The IT-BPM sector in India grew<br />
at a Compound Annual Growth rate (CAGR) of 15% over 2010-15, which is 3-4 times higher than the global IT-BPM<br />
spend, and is estimated to expand at a CAGR of 9.5% to $300 billion by 2020.<br />
The Indian IT industry has been growing rapidly in double digits over the last ten years. The contribution of the IT sector<br />
to India’s GDP has increased to a whopping 9.5% in FY15 from 1.2% in FY98, thanks to its cost competitive advantage<br />
and growing population. India’s IT sector is dominated by its exports business with the US economy contributing around<br />
62% of the total exports as shown below, followed by the UK and Europe.<br />
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