Last decade or so has seen a huge paradigm shift as far as IT sector is concerned. Particularly Indian IT companies have seen a huge growth in this period. They have discovered that there is a business to be taken in the overseas market. Hiring is again on it’s high and the big companies are churning more profits than ever.
There are more opportunities in IT sector than ever. From medical transcription to insurance processing, from human resources services to customers interaction, digitalization and what not IT sector is climbing the ladder upwards only. One might wonder the reasons for this boom. And this is why we have decided to find the top 10 reasons for this boom in IT:
Comparing to it’s earlier days, IT sector has diversified a lot. Other than outsourcing it also provides the services for remote processing, legal databases, online education, etc. Almost every sector has seen the involvement in IT in one way or other. Particularly software industry has seen a huge growth in the past years.
2. Project delivery
The quality of delivery that has been projected by the Indian companies is commendable. Companies like cognizant have managed to match the delivery standards when compared globally. Other leading research organizations like Meta is compared and seen on par with companies like EDS corporation and Accenture.
3. Hardware segment
The hardware segment of IT industry has contributed to a large part of the growth of this sector. It is expected that this would cross $4 trillion market and a market cap of $130 billion by 2020. This will provide the employment opportunities for the people. Sale of personal computers has also increased in the last decade. Further India is penetrating more and more into the telecommunications and consumer electronics market. This, in turn, can lead to the increase in a number of products. Other than this, there is a significant increase in the consumption of the banking, telecom, manufacturing market. Additionally, business process outsourcing (BPO) and IT-enabled services(ITES) has also seen the increase in hardware devices. As in recent times, India has emerged as the preferred spot for BPO and a key member in service and software industry sector.
This has been a huge contributor to the expansion of the IT sector throughout India. As we are seeing more and more people capable of doing the basic computer tasks that are required by the company. Also with the advancement of internet and technology more people are involving themselves in the IT sector to reap its benefits. People are looking to equip themselves with more and more education for better future. This helps them with the various technological advancements.
5. New services are offered
As Indian companies are expanding more and more into the new markets they are also providing multiple options with respect to services offered. The new services that these companies are offering include consulting, package implementation, infrastructure solutions, business process outsourcing and also testing. Expanding the portfolio has helped the IT sector grow a lot. This also makes them an ideal candidate for clients that wants them to outsource.
6. Customer mining
Indian companies are not only getting new customers but they are also providing more and more IT related services to their existing customers. An example of this is cognizant which has more relationship managers than marketing and sales managers. They believe that maintaining good relations with a customer can go a long way. And they are not wrong! As the results show this helped many big companies grow in double digits annually. And that is why it is contributing to this IT boom.
Perhaps the biggest reason for the IT boom is outsourcing. India offers a cheap labor market for professionals. The wages in India are very low when you compare it some of the counties in Europe and even in the USA. And this is why more and more fortune 100 companies are looking India as an ideal outsource and offshoring destination. Technological investments can give results but they are limited. Somewhere along the line, you have to look towards cost as well and for that, they need to invest heavily in India.
As the world is no longer a safe place we are seeing a lot of security personnel used for the protection of the people. And this protection is done through the drones, CCTV camera, etc. Also, the countries are being attacked by the hackers and various software need to be developed to fight this attack. And this is where we are requiring more and more IT related stuff. Also, this creates a lot of jobs in the field of innovation and computing experience. And the graph is still going upwards and is expected to rise in the coming decades.
We are seeing digitalization in many sectors of India. From farming to healthcare every sector is under the influence of digitalization. As far as healthcare is concerned technology like wearable health gadgets, fitness trackers, high-grade hospital tech are the things that are making digitalization in this field easier and smoother. At every level, digital work is more and more important. From making a diagnosis, preventing diseases, taking care of patients record everything is seeing the change. In farming also, farmers are now seeking the help of IoT and big data for better rewards of the seeds they have sown. They can now get any market-related information at any time and from anywhere. With the help of technology, they are now being trained to sow seeds according to the climate conditions. They are also better to equip to fight against the sudden damage to the crop.
10. Expanding into new markets
There was a time when Indian companies only used to focus on the North American companies. But now the scenario has changed. Indian IT firms are starting to look up to China, South Africa, Australia, New Zealand and Latin America. The research shows that the TCS, Infosys have looked at Australia, South Africa, and New Zealand for potential expansion. While other companies like Satyam and Cognizant are looking at Hungary, Brazil, Australia, and China purely from a development perspective. This has massively impacted the boost that these companies are witnessing right now. Traders and analysts believe that this will further grow in the upcoming decades.
So, this was our list of the reasons that why there is a boom in IT. We believe some of them are recent while others have been planted generations ago. While many of them have developed and shaped IT industry for a great future, there are plenty of reasons in the developing stage. Only time will tell how long this boom continues. You can also list out your reasons for this growth in the comment section below.