India has emerged as the world’s fourth largest hub for start-ups with over 3,100 of them, driven by “hyper growth” in technology and software products in the country, according to the Economic Survey 2014-15.
The Indian IT-BPM industry, which raked in revenues of USD 119 billion in 2014-15, is being driven by greater automation, expanding omni-channel presence and application of analytics across the entire value chain, the survey added.
“The year also witnessed hyper-growth in the technology start-ups and software product landscape, India ranking as the fourth largest start-up hub in the world with over 3,100 start-ups in the country,” it said.
The survey added that the IT-ITeS sector, including Business Process Management (BPM), continues to be one of the largest employers in the country, directly employing nearly 35 lakh people.
As per the Central Statistics Office (CSO), computer and related services, whose share GDP is 3.3 per cent, grew by 14.4 per cent in 2013-14.
While the export market grew by 12.3 per cent to USD 98 billion in 2014-15, the domestic IT-BPM market is estimated at USD 20.9 billion in 2014-15, with a growth of 10 per cent.
The survey said consultancy services are emerging as one of the fastest growing services in India cutting across different sectors with some overlapping.
“According to Plunkett Research, global consulting industry revenues (including human resources (HR), IT, strategy, operations, management, and business advisory services) increased to an estimated USD 431 billion in 2014 compared to USD 415 billion during the previous year,” it said.
India’s outsourcing and consulting industry is estimated at USD 86.4 billion in 2014, accounting for almost 20 per cent of global consulting industry revenue, and is projected to reach USD 99.0 billion in 2015.
“India’s emergence as one of the fastest growing consultancy markets worldwide is largely attributable to increased investment activities due to liberalisation of FDI, entry of many new players into the Indian market and low cost sourcing,” it added.
Indian consultants have good expertise particularly in engineering consultancy which could be leveraged to enhance consultancy exports.