ICT Opportunities in India

An Expert's View about IT and Telecommunications in India

Posted on: 1 Oct 2010

The domestic market in India and the appetite for new products, technologies to create bespoke solutions is growing rapidly.

Sector briefing Information & Communication Technology Opportunities in India Why India? India has entered in to a global leadership position by transforming a £2bn sunrise industry into a £30bn global IT powerhouse over the last decade. Indian exports in this industry have grown by about 35% year on year in the last eleven years. The sector has survived two global downturns ? the dotcom bust in 2000 and the global financial crisis last year. The Indian ICT industry contributes about 6.1% to the national GDP, which is about 5 the 26-35 age-group. Growth in the times of its contribution about 10yrs ago. technology segment in India has resulted in growth in the allied sectors such as India has political and regulatory Security and Transportation, creating stability. Global companies in all the key more employment. As a result, every job sectors are now looking at the bottom-of- created directly in the IT segment results the-pyramid market opportunity in India. in about 4 jobs indirectly created in the The domestic market in India and the allied sectors. appetite for new products, technologies to create bespoke solutions is growing Find general information on the Indian market rapidly. conditions on UKTI?s website. The Doing Business Guide for India gives an overview of The Indian IT sector experienced an overall India?s economy, business culture, potential growth of about 13%, and 6% in exports, opportunities and an introduction to other amounting to over $70bn in revenues, during relevant issue. the global slowdown. The Indian IT industry directly employs over 2.3mn people, 70% of which falls in UK Trade & Investment Sector briefing: ICT Opportunities in India Telecommunications Opportunities India crossed the 600 million mobile Considering the importance of this sector connections mark in April 2010. It is the to India's economy, and the benefits of IT second largest telecom network in the world to the Indian companies, the Indian after China with the total telecom subscriber government has allowed duty-free import base of 638mn. Tele density in India has grown of software in to India. India is also a 10 times in the last 20 years ? from 5 per 100 signatory to the Information Technology to 54 per 100 people. Agreement (ITA) of WTO, which provides for the duty-free import of a large range Mobile telephony, which is the fastest growing of IT products including PCs, printers and sub-segment of the telecom market in India, Servers. experienced phenomenal growth from 391.76mn subscribers in March 2009 to 601.22mn at the The main area of opportunities for UK end of April 2010 ? a growth of over 53% in one companies in the Indian market exist in year. Currently India is adding over 15mn new the following areas: subscribers every month. E-Healthcare Ernst & Young estimates that the revenue from India's telecom services industry will touch E-healthcare in India has been limited to £36bn in 2012, an 80% increase from 2008. medical transcription, health awareness through portals, telemedicine, hospital and laboratory management systems, and some The Government of India recently concluded forms of customer service through internet for auctions for 3G spectrum. Broadband Wireless the medical insurance sector. There is Access (BWA) spectrum is expected to be negligible basis of e-healthcare systems in the completed soon. Most operators are expected government health services in India. This is to roll out 3G and BWA services by the end of seen as an opportunity and has triggered off 2010. There will be opportunities for private sector investment, especially in the tier companies offering 3G based Value-Added 1 (state capitals) and tier 2 (other large) cities. Services (VAS). The operators show interest in offering VAS, especially in the mature markets The software products available in India include (metros), as a means of increasing ARPU, some proven systems from international which is currently very low in India. companies as well as a few locally-developed products. Large IT service providers including CDAC, TCS, Wipro and Siemens Informations Opportunities will also be available to Systems Ltd are the key players. These companies offering mobile broadband companies offer end-to-end solutions such as technologies, devices and applications. Hospital Information Systems, Picture Archival Broadband penetration currently stands at 9mn Communication Systems and Telemedicine. in India. Companies see mobile broadband as a possible solution for widespread broadband 1. Hospital information Systems including penetration. Electronic Medical Records for patient management, Claims Management, Critical E-Governance Procedures Administration, TPA Communication and Data-management Systems Government of India plans to spend 3% of its 2. Cyber-surgery annual budget on e-government projects in 3. Tele-medicine, including tele-radiology. 2010-11. Nasscom, the premier association of 4. Medical transcription services software companies in India, estimates that 5. Application Software Systems Integration the overall e-government market in India is such as those for EMR/EHR, CPOE, PACS and worth £5bn. DSS requirements. 6. Technology Consulting for Hospitals National e-Governance Plan (NeGP) launched including identification, adaptation, security by the Indian government of India, comprises assessment and maintenance of various of 27 projects (at federal and the state level) wireless technologies such as PSTN, RFID, WiFi and 8 support projects. The Unique Identity and DECT. project (UID) is one of the most ambitious projects, which aims to provide a unique identity number to each of the 1.2bn people in UK Trade & Investment Sector briefing: ICT Opportunities in India India. A number of private IT service providers consumption of electronics products and are encouraged to bid for this project. services is expected to grow to 70bn by 2014. Among of the leading service providers in The Indian mobile-phone revolution and the India, IBM, HP, Microsoft, TCS, Wipro, HCL, 3i booming consumer electronics market are good Infotech, Patni systems and Mahindra Satyam reasons for global micro-electronics companies are active in e-government programmes. to include India in their marketing strategy. UK companies have opportunities to provide services and solutions in the following areas: The main areas of opportunity in the semiconductor segment are ? medical / ? Geographical and Land Information healthcare electronics, telecommunications systems (including wireless) and automotive ? Intelligent Transport Systems electronics. ? Security and CCTV ? Govt Healthcare systems The semiconductor market growth is also likely ? Identity management - biometrics to be driven by demand for set-top boxes and ? Mobile applications for G2C services wireless handsets, the 3G rollout, deployment of WiMAX, and popularity of notebooks and smart cards. Education IT Setting up of Unique Identification Authority of Market in the Higher Education sector India (UIDAI) and investments in SMART comprises of 11.6mn students. The number is infrastructure offer major opportunities for the expected to touch 34mn by 2019. This massive semiconductor industry to introduce new demand puts pressure on education providers solutions and generate intellectual property. ? both private and government ? and needs consistent supply of teachers and quality infrastructure. As a result, a number of private universities and colleges have come up, and are adopting technology as an enabler. The Indian government recently introduced the landmark regulation allowing foreign education providers to set up campuses and award degrees in India. But important restrictions remain, particularly ban on repatriation of profits, which makes these campuses tough to set up. IT adoption in the education sector has been relatively slow, but growing mainly in private institutions and colleges. Opportunities for the UK companies include: - IT tools for student services management including applications for admissions, curriculum, residential services - Tools for delivering education programme modules electronically - Electronic educational aid Semiconductors According to the Department of IT, Government of India, the consumer and industrial electronics demand in the Indian market stands at £25bn, of which 80 per cent is serviced through imports. Domestic UK Trade & Investment Sector briefing: ICT Opportunities in India If you have any questions on the opportunities above, contact the UKTI] contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website UK Trade & Investment Sector briefing: ICT Opportunities in India Major events and activities UKTI contacts E-India, Hyderabad Sunish Jauhari Contact: Veni Mocherla Senior Trade & Investment Adviser Email: Veni.Mocherla@fconet.fco.gov.uk British Deputy High Commission Time: Aug 2010 Tel: (0091 80) 2210 0200 Email: Sunish.Jauhari@fco.gov.uk Automation India, Mumbai www.ukti.gov.uk Contact: T R Giridhar Email: TR.Giridhar@fco.gov.uk Richard Hyde Time: Sept 2010 British Deputy High Commissioner British Deputy High Commission Asia Pacific Clinics Tel: (0091 80) 2210 0200 Contact: Sunish Jauhari Email: Richard.Hyde@fco.gov.uk Email: Sunish.Jauhari@fco.gov.uk www.ukti.gov.uk Time: Sept 2010 Enabling Innovation India Contact: Sunish Jauhari Email: Sunish.Jauhari@fco.gov.uk Time: Nov 2010 India Telecom Contact: Mukul Verma Email: Mukul.Verma@fco.gov.uk Time: Dec 2010 ISA Vision Summit 2011 Contact: Sunish Jauhari Email: Sunish.Jauhari@fco.gov.uk Time: Feb 2011 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: ICT Opportunities in India Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Indian market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in India, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: ICT Opportunities in India
Posted: 01 October 2010

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