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IT sector on recovery path
Why is it in the news ?
- In joint statement, the international IT experts have affirmed that after some years of a dry drive, Indian tech firms now seem to have established themselves firmly as digital transformation agents in the global market.
- Growth is picking up for the Indian IT sector and the good news is that most players have a strong hiring plan in place.
More in the news
- Last fiscal’s performance numbers posted by the country’s leading players reflect a clear upswing in the market.
- All the digital pilot projects that were under way over the last couple of years are now going mainstream and are being scaled into enterprises.
- The industry continues to expand above the rate of growth of global GDP.
- This is driven by digital transformation and increasingly the modernisation of IT movement which continues to gather steam.
- This otherwise promising outlook was somewhat clouded by a slowing global GDP for all areas outside the U.S. and the cannibalisation effect that modernisation is having on legacy IT and BPO.
- Market cannibalization is a sales loss caused by a company's introduction of a new product that displaces one of its own older products rather than increasing the company's overall market share.
- IT Sector in India:(1) India is the leading sourcing destination across the world, accounting for approximately 55% market share of the US$ 185-190 billion global services sourcing business in 2017-18.(2) Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world.(3) India has become the digital capabilities hub of the world with around 75% of global digital talent present in the country.(4) India’s IT & ITeS industry grew to US$ 181 billion in 2018-19.(5) Exports from the industry increased to US$ 137 billion in FY19 while domestic revenues (including hardware) advanced to US$ 44 billion.
Source
The Hindu, Ibef.