Indian IT industry is expected to proliferate at a much faster pace thanks to its investment and adoption of cloud digital services.
According to a report conducted by McKinsey & Company, the Indian IT industry is expected to touch $300-$350 billion in revenue by 2026 with a growth rate of 10 percent a year. This will propel the Indian IT industry, which currently stands at $194 billion, at a much faster pace than the previous five years’ growth of 7.5 percent.
As per the report, cloud and digital services will accelerate the growth taking their current share from the present 30 percent to 50 percent resulting in $170 to $200 billion growth revenue. Furthermore, it states that the traditional IT services will witness a sharp decline in their adoption of cloud and digital services at an 8-10 percent rate per annum when compared to 3-4 percent in the last five years.
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The report showcases a strong foundation for the growth drivers in the next 5-10 years. As per industry experts, technology will continue to play a key role in the industry’s recovery post the COVID-era. Achieving the desired goals will require IT leaders across the industry to collaborate in developing as well as scaling digital technologies for creating diverse and ascendable, products and services. They will need to rethink and re-evaluate their strategies on service lines and customer segments. Furthermore, enterprise leaders will need to increase their expenditure in areas such as Machine Learning, Artificial Intelligence, 5G, IoT, enterprise SAS ecosystem, etc.
The McKinsey’s report further underlines that enterprise tech is likely to rise to 5 percent in its total revenue. Tech natives along with industry innovators will fuel about 75 percent of technology investment for the enterprise landscape. To capitalize on this investment opportunity, the service providers will need to change their focus towards identifying new opportunities in the marketplace.
Even though the B2C market segment will dominate the tech investment in the IT industry, B2B will have enough room to experience exponential growth. McKinsey estimates that between $100-$125 billion tech investments will be forwarded towards B2B enterprises. AI, cloud and cybersecurity will play a critical role in the digital movement.
The biggest factor that will push the growth within the IT industry is for the appropriate talent. Having great investments in the advanced technologies won’t yield the expected results unless it is coupled with the right talent that can leverage them. Hence, IT leaders will also need to reskill their employees and hire industry to enable them to move forward towards achieving their industry objectives.