India's domestic IT market has been sized at $36 billion for the year 2015, a report released by Zinnov Management Consulting on “India’s Domestic IT...
India’s domestic IT market has been sized at $36 billion for the year 2015, a report released by Zinnov Management Consulting on “India’s Domestic IT Market Landscape 2015” revealed today.
The report further noted that the Indian government’s Digital India project will be an exponential driver for massive growth in IT adoption. The estimated budget of Digital India is going to be about $19 billion between 2014 -2018.
Zinnov study found that increased access to enabling infrastructure such as increased use of smart phones, and easy access to internet will result in greater adoption of technology by small businesses. The study highlights key vertical wise initiatives of IT adoption across government, BFSI, education, healthcare and telecom. “All this is expected to help India become the second largest IT market in APAC by 2018,” the report stated.
The key drivers of IT growth highlighted in the report are upgradation of legacy systems, growing acceptance of cloud based solutions, emerging technologies like Internet of Things, Big Data and mobility and Indian government’s focus on digital India.
According to the report the total cloud market in India will grow at 45% CAGR to $14.8 billion in 2020. The study estimates that the private cloud market is expected to increase to $ 7.4-7.6 billion in 2020 while the public cloud market too would grow to almost an equivalent size at $7 -7.4 billion in 2020.
The study finds that Indian CIO’s cite favorable reasons for continued success of the cloud market including cloud technology being the number one priority and the belief that the SMAC stack will provide a competitive advantage for their organisations.
Commenting on the findings, Pari Natarajan, Co Founder and CEO, Zinnov Management Consulting said, “We believe multiple factors are driving the adoption of cloud solutions. We see cloud advertising, software as a services and business process as a service becoming critical categories of cloud adoption.”
Multiple factors are expected to result in significant adoption of cloud solutions. Some of the primary drivers are setting up of local data centers. The expected 3X increase in internet penetration is backed by a digital India initiative that is expected to attract $ 17 billion investment in next 3-4 years. It is also expected that about 90% of the SMB’s will be tech influenced by 2020. This coupled with over 3X growth in total number of technology startups in India offering vertical specific innovative solutions backed with affordable pricing will drive adoption of cloud solutions.