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IT Enabled Services
Industry Summary
- IT & BPM sector contributes ~8% to India's GDP and is a major employment generator.
- India is the world's largest sourcing destination for the IT industry, accounting for approximately 55% of the US$ 200-250 billion global services sourcing business in 2019-20.
- The IT industry employs 4.5 million people as of FY21.
- Key trends include Cloud Computing, AI/ML, Digital Transformation, and Remote Working models.
- Software product industry is expected to reach US$ 100 billion by 2025.
Value Chain
Step 1
Business Development
Bidding, Client Acquisition, Contract Negotiation
Step 2
Requirement Analysis
Understanding client needs, scope definition
Step 3
Design & Development
Software architecture, coding, testing
Step 4
Deployment
Implementation, User Training
Step 5
Maintenance & Support
Bug fixes, updates, managed services
Cost Drivers
- Employee Salaries (Major component)
- Infrastructure & Facility costs
- Software Licenses & Tools
- Travel & Visa costs
- Training & Upskilling
Revenue Drivers
- Billable Hours/Man-months
- Fixed Price Projects
- Licensing Fees (for products)
- Subscription/SaaS models
- Managed Services fees
Growth Drivers
- Digital Transformation across industries
- Cloud Migration
- Emerging technologies (AI, IoT, Blockchain)
- Cost arbitrage advantage of India
- Government support (STPI, SEZs)
Key Customers
- BFSI (Banking, Financial Services, Insurance)
- Retail & CPG
- Healthcare
- Manufacturing
- Telecom & Media
Key Players
- TCS (Tata Consultancy Services)
- Infosys
- Wipro
- HCL Technologies
- Tech Mahindra
- Mindtree
Channels
- Direct Sales/B2B
- Global Delivery Centers
- Strategic Partnerships
- Consulting