India's Digital Journey

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1 Strategic Review 2017 India's Digital Journey

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3 Strategic Review 2017 India's Digital Journey

4 Strategic Review 2017: India's Digital Journey Copyright 2017 Plot 7 to 10, Sector 126, Noida , India Phone: research@nasscom.in First Print: February 2017 Published by NASSCOM Designed & Produced by Purplemango (India) NASSCOM is the premier trade body for the IT-BPM sector in India. It is a not-for-profit organisation and has emerged as the authentic voice of this industry in India. It is also the single reference point for all information on IT industry in India. NASSCOM publishes an annual edition of its Strategic Review to disseminate the latest status of the industry performance. Disclaimer The information contained herein has been obtained from sources believed to be reliable. NASSCOM disclaims all warranties as to the accuracy, completeness or adequacy of such information. NASSCOM shall have no liability for errors, omissions or inadequacies in the information contained herein, or for interpretations thereof. The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media without permission in writing from NASSCOM. Request for permission to reproduce any part of the report may be sent to NASSCOM. Usage of Information Forwarding/copy/using in publications without approval from NASSCOM will be considered as infringement of intellectual property rights.

5 Strategic Review 2017: India's Digital Journey Foreword Technology disruption and its continued impact was felt in 2016 in even greater measure, brought about by the usual suspects IoT, Cloud, AI, etc. As if that weren t enough, we had the Brexit referendum and the American Presidential Election, the outcomes of which were most unexpected and threw global markets in a tailspin for some time. Interestingly, these megatrends did nothing to slow down the steady march of digital and allied high-end technologies. Driverless cars, Artificial Intelligence, intelligent personal assistants and robotics et al are all screaming for greater visibility, as the din grows louder. This only reiterates that the process of globalisation in an interconnected world, aided by technology, is not something that can be reversed. It should not even be attempted! Digital technologies have been stamping their mark everywhere these technologies are now on their way to being ubiquitous and are completing altering the way we do things be it in the manufacturing process, business transactions, our interactions with our customers, suppliers, family, friends or government, etc. Adjusting to this new and rapidly morphing landscape is such an imperative now that technology firms are re-organising their structures around the digital business, OEMs (across verticals) are exploring where and how to implement these technologies and the government is also leveraging them to deliver G2G, G2B and G2C services. 1. MEASURING INDIA S DIGITAL JOURNEY: Share of digital in IT-BPM exports has grown 4X over , with leading players reporting a 10-15% share of revenue from digital Cloud and analytics accounted for nearly 3/5th of digital opportunities, mobility and social, an additional 15%; other themes seeing interest include automation, IoT, robotics and AI Significant enterprise focus has been on digitising mid- and back-office functions Providers developing differentiated capabilities by re-skilling, setting up experience centres, labs and COEs in select areas of specialisation Providers leveraging their clients, external partners and other ecosystem networks to identify / develop joint-solutions, acquisitions to deepen capabilities Upcoming transition to GST, smart city initiatives and industry specific developments, offer several avenues of opportunity for IT-BPM players focusing on the domestic market 2. ENTERPRISE DIGITAL TRANSFORMATION (DEMAND SIDE) Enterprises is also rapidly undergoing digital transformation; growth drivers include faster speed to market, reduce risks, BYOD, enhancing customer experience, etc. For these firms, digital technologies are also unlocking new revenue streams. In terms of adoption in India:

6 Strategic Review 2017: India's Digital Journey BFSI: Seeing growing implementation of cloud, analytics, mobility and IoT Manufacturing: Big Data Analytics and automation/iot dominate; potential to increase applications of cloud, mobility and security Telecom: Increasingly taking to cloud, automation/iot and security; greater need to leverage Big Data Analytics and mobility Retail: Heavy usage of cloud and mobility; increasingly implementing Big Data Analytics, automation, security Healthcare: Cloud and mobility technologies high adoption; scope to apply Big Data Analytics, automation/iot and security This section also contains a detailed, in-depth analysis of technology adoption by these verticals. 3. DIGITAL INDIA - INDIA S JOURNEY IN BECOMING A DIGITAL NATION Initiatives include an ever-growing internet economy with increasing number of Wi-FI hotspots being enabled Cashless, Paperless India increased adoption of mobile wallets, Jan Dhan accounts, Aadhar, etc. Digital Literacy skills training through NDLM and establishing Common Service Centres (CSCs) App Economy - Indians spent >140 billion hours on Android apps the highest in the world (excl. China); India to witness highest 5-year CAGR in app revenues Citizen Services Electronic delivery of citizen services through e-kranti; 44 Mission Mode Projects (MMP) of which 25+ are operational; 222+ e-services implemented Goods & Services Tax Network (GSTN) - Aims to provide a robust IT backbone for GST implementation Smart cities - Development of 60 Smart Cities during FY Each of these initiatives is analysed in-depth in this chapter. Team NASSCOM presents The IT-BPM Sector in India 2017-India s Digital Journey. I hope you find this report useful. Please share your comments & feedback at research@nasscom.in. R Chandrashekhar President NASSCOM