India's technology and business service providers are at the cusp of a significant opportunity as digital technologies get embedded in a widening range of products and services. The global and domestic markets present a huge opportunity for companies to build expertise in these new technologies and deliver value through them. Moving to capture this digital opportunity, the Indian technology and services industry is on track to reach its USD 200 billion to USD 225 billion revenue goal by 2020 and, furthermore, to reach USD 350 billion by 2025.
The latest report released by Nasscom, Perspective 2025: Shaping the Digital Revolution, outlines the roadmap for this new environment. The report is based on extensive research conducted by McKinsey & Company for over a year.
Technology and services industry in India has become a transformational partner for its customers. Innovative and disruptive technologies will shape the enterprise of the future. The industry will need to reinvent business models and take concerted steps to make India a global center for innovation in digital technology. India could offer cutting-edge solutions and services that will shape the digital revolution globally.
Companies will have to closely watch six new service lines including the Internet of Things, Cybersecurity, Social, Mobility, Analytics, and Cloud. Organizations will need to cater to customers entering the digital environment at different speeds. Digital leaders and attackers will make significant investments to convert their entire system into digital architecture. Smart followers will deploy digital technologies while retaining legacy technologies in their front-end services for the moment. Digital laggards will keep most of their legacy systems, making only incremental investments in digital technology. Providers serving these customers will have to adjust their value propositions for each segment and turn into a 3-in-1 organization.
Some key steps that need to be taken include fostering innovation clusters, building capabilities, rolling out a massive reskilling program, turbo-charging the startup economy and the government's ongoing Startup India program, and branding?India as a global digital innovation hub.
The government, industry, academia, and industry associations will need to create the right conditions for the technology and services industry to sustain its momentum.