India’s massive growth presents a huge opportunity in the domestic market. A recent report released by Zinnov Management Consulting on “India’s Domestic IT Market Landscape 2015”, sized the domestic IT market at USD 36 Billion in 2015. This market is expected to grow at 14% CAGR to reach USD 65 Billion in 2020.
Driven By Adoption Of Cloud Technologies India’s Domestic IT Market To Touch USD 67 Billion By 2020: Zinnov Study.India’s massive growth presents a huge opportunity in the domestic market. A recent report released by Zinnov Management Consulting on “India’s Domestic IT Market Landscape 2015”, sized the domestic IT market at USD 36 Billion in 2015. This market is expected to grow at 14% CAGR to reach USD 65 Billion in 2020.
The Indian Government’s Digital India project will be an exponential driver for massive growth in IT adoption. The estimated budget of Digital India is going to be USD 19 Billion between 2014 -2018.
Zinnov study found that increased access to enabling infrastructure such as increased use of smart phones, and easy access to internet will result in greater adoption of technology by Small Businesses.
The study highlights key vertical wise initiatives of IT adoption across government, BFSI, Education, Healthcare and Telecom. All of this is expected to Help India become the 2nd Largest IT market in APAC by 2018.
The key drivers of IT growth highlighted in the report are:
·Up gradation of legacy systems
·Growing acceptance of cloud based solutions
·Emerging technologies like Internet of Things, Big Data and Mobility
·Focus from the India government on digital India.
According to the report the total cloud market in India will grow at 45% CAGR to USD 14.8 Billion in 2020. The study estimates the private cloud to increase to USD 7.4-7.6 Billion in 2020. The public cloud market is expected to almost of equivalent size at USD 7.0-7.4 Billion in 2020.
Study finds that Indian CIO’s site favorable reasons for continued success of the cloud market including cloud technology being the number one priority and the belief the SMAC stack will provide a competitive advantage for their organizations.
According to Pari Natarajan – Co Founder and CEO, Zinnov Management Consulting, “We believe multiple factors are driving the adoption of cloud solutions. We see cloud advertising, software as a services and business process as a service becoming critical categories of cloud adoption.”
Multiple factors are expected to result in significant adoption of cloud solutions. Some of the primary drivers are setting up of local datacenters. The expected 3X increase in internet penetration backed by a digital India initiative that is expected to attract USD 17 Billion investment in next 3-4 years. 90% of SMB’s are expected to be tech influenced by 2020. This coupled with over 3X growth in total number of technology startups in India offering vertical specific innovative solutions backed with affordable pricing will drive adoption of cloud solutions.