IT & ITeS, Software, BPO, Captives and ER&D
Players need to embrace change brought in by newer technologies
As cost arbitrage no longer remains a competitive advantage, the Indian IT industry is witnessing a paradigm shift in the way services are being delivered. In a move to counter the effects of regulations in key markets and the widespread adoption of automation, majority of the IT players in India are being forced to rethink their talent model. With a slowdown in demand for traditional outsourcing services, it is imperative for companies to build newer capabilities in emerging technologies such as Cloud, AI, SMAC. However, as companies intend to move up the digital value chain, ensuring robust cyber security frameworks while embracing the changes brought in by digital disruptions will be a key factor in realizing the industry’s future potential.
Hardware & Electronics Manufacturing
Technological advancements and a favorable local ecosystem will help industry flourish to its full potential
The demand for electronic products in India is set to grow significantly in the next few years, primarily driven by a strong economic outlook and rising middle class. Progressive government reforms such as Digital India, Make in India, the Jan Dhan-Aadhaar-Mobile trinity and Rural electrification are leading to a surge in demand for electronic devices and smartphones. Although the domestic market is growing, cumulative domestic value addition remains low in India. A limited component supplier ecosystem, higher cost of finance and power, and infrastructure bottlenecks are key factors that have led to companies being heavily dependent on imports.
eCommerce & Internet Business
Indian market to grow rapidly as new growth drivers emerge
India’s overall retail opportunity is substantial, and coupled with the demographic dividend (young population, rising standards of living and upwardly mobile middle class) and rising Internet penetration, we are seeing a strong growth in the eCommerce market. Higher financial inclusion through mobile and increasing connectivity has led to Tier II and III cities and small towns contributing meaningfully to the eCommerce pie and will be pivotal for future growth. However, amidst valuation markdowns and heightened competition , path to profitability is the single most critical financial challenge for eCommerce players in India. Increasing convergence of online and offline channels will require companies to rethink their strategy to improve operating fundamentals.