The Telegraph
Monday , January 6 , 2014
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Triple pillars of tech growth

New game plan

Calcutta, Jan. 5: Big data analytics, use of technology to reduce healthcare costs and increased offshoring of engineering and research and development (ER&D) services to India are expected to fuel growth of the IT and ITeS sectors in 2014, according to Dun & Bradstreet.

The sector contributes around 8 per cent to the gross domestic product (GDP). IT services and BPO are estimated to have provided employment to 3 million people directly and around 9 million people indirectly till 2012-13.

Traditional data processing applications have been rendered irrelevant by the rapid growth of huge volumes of unstructured data, which if analysed can give competitive advantages to companies.

Demand is expected to pour in from industry verticals such as healthcare, retail, telecom and financial services, and India’s IT and ITeS market is well-established to cater to big data implementation, the report said.

Besides, efforts by governments round the world to offer cost-effective healthcare solutions are expected to open up opportunities for IT vendors in data management, claims processing and insurance sales. According to Dun & Bradstreet, the need to maintain electronic health records is likely to offer digital conversion opportunities to the industry.

“According to Nasscom, as of 2012, India’s big data industry size is estimated at around $200 million. It is expected to grow at a tremendous pace in the near future and reach $1,000 million by 2015, increasing at a compounded annual growth rate of over 70 per cent during 2012-15,” said Arun Singh, senior economist at Dun & Bradstreet India.

“Cyber security is one of the core focus areas for the industry. At present, India faces several issues in addressing cyber security concerns because of multiple administrative bottlenecks and the huge cost involved. Increasing penetration of Internet and boom in e-commerce have led to exponential growth of cyber space. The rapid growth of smartphone users and its use for doing transactions has been adding to its expansion,” he said.

In ER&D, Indian companies have been developing capabilities and reducing the time taken to design and market a product. This has kept costs under control.