New Delhi, October 6, 2015: The Indian technology and services industry is on track to reach its goal of $200 billion to $225 billion in revenues by 2020 and $350 billion by 2025, finds a NASSCOM study.
India’s technology and business service providers are at the cusp of a significant opportunity as digital technologies get embedded in a widening range of products and services, says the report: Perspective 2025: Shaping the Digital Revolution, based on extensive research conducted for over a year by McKinsey.
Driven by the adoption of digital technology, the total addressable market for global technology and business services will likely expand to about USD 4 trillion by 2025, growing at an average annual rate of about 3.6%.
Says BVR Mohan Reddy, Chairman, NASSCOM: “The technology and services industry in India has become a transformational partner for its customers. The report identifies innovative and disruptive technologies that will shape the enterprise of the future. It also provides insights for the industry to reinvent business models and identifies key steps needed to make India a global centre for innovation in digital technology. Our aspiration is to build cutting edge solutions and services from India that will shape the digital revolution globally”.
The big implications for companies are: the need to develop new service lines. New service lines will account for 40% of all revenues by 2025; shifting portfolios to advanced, disruptive technologies; managing customer digitization at different speeds and re-skilling of people as revenues decouple from headcount.The most pressing need is for companies to develop offerings along new digital service lines, even as they re-invent their traditional service lines, says Noshir Kaka, Managing Director, McKinsey & Co., India: “Companies hoping to prosper in the new environment will have to closely watch six new service lines- including the Internet of Things, Cybersecurity, Social, Mobility, Analytics and Cloud.”