India is third fastest growing app market

HYDERABAD, INDIA: The IT and ITES Industry Association of Andhra Pradesh, an apex body of 300 IT and ITES industries in the state organized an Annual ITsAP SME Conference 2014 here in city at HICC.

The one-day conference was participated by well over 300 hundred participants. Sanjay Jaju, Secretary, ITE&C, Government of Andhra Pradesh formally inaugurated the meet.

Former Telecom Secretary and current NASSCOM National president, R. Chandrashekhar, who took over charge recently as president of NASSCOM, the body that represents the $108 billion Indian IT_BPM Industry delivered a key note address on Industry Perspective and Opportunities for SMEs. He was the first to establish the department of information technology in the country in the state of Andhra Pradesh and was secretary of the department from June 1997 to December 1999.

Chandrashekhar gave Indian IT, BPM industry overview for the year 2014 and outlook of year 2015. The industry is evolving constantly. Businesses are increasingly influencing technology. We are witnessing lively start up ecosystem infusing new energy fuelling innovation.

Giving an overview of IT-BPM industry, he said it is the largest private sector employer with 3.1 million. It is the largest private sector of women employer giving employment to 1 million. It is the highest attractor of $2.4 billion PE and VC investment.

The worldwide GDP growth are set to increase from 3.1 percent in 2013 to 3.7 percent in the year 2014. Unemployment is set to decline. World Inflation is set to reduce. Commodity prices are coming down. The Global Sourcing is growing by 2X of IT BPM spend. The industry is expected to aggregate $118 billion in FY2014. This re-inforces India's position as the one country form where you can do everything.

It was the big hiring time. The industry employee base crossed 3 million addition of 1.66 lakh he said and added that India is epicenter of the technology world of 50 percent of global technology MNCs, 80 percent of Indian tech companies and 20-30 percent of global R&D workforce is based out of India.

Speaking about Indian start up ecosystem, he said there are 1,000-1,200 who are big and doing remarkably well. We have 20,000 small size players. Bangalore is one of the top 20 start ups ecosystem globally. The years gone by have registered three times growth in new firms set up post year 2005. Start ups are increasingly focusing on solutions around SMAC.

He said there is an increase in million dollar clients by 50 percent in the last five years. About 100 percent of clients have gained productivity improvements from India. Over 70 percent have derived global emerging marketing solutions from India. India is a dynamic market place with 920 million telecom subscribers, 40 million smartphones and 213 million internet users. It is the third fastest growing app market in the world. It has more than 300 million plus apps downloaded and market of Rs. 300 crore plus.

Chandrashekar also projected growth in global IT spending. He said it is projected to grow faster in 2014. IT will grow by 3.9 percent and BPM by 5.9 percent. But there are some challenges too. Politicial instability was the big problem. Stability of macro economic variables, delay in decision making slowed down the government projects. The skills are in huge demand and there is big problem on that front. Immigration bill, dollar fluctuations too had its share of worries for the industry, he said. The state of Andhra Pradesh additionally had more uncertainty due to bifurcation agitation.

Now that it is resolved, we can expect things to change for better. He also listed out few priority areas of NASSCOM such as Technology Transforming, Strategic Partnerships, Collaborations, Digital Hub and expansion to new geographies for business growth.

 

Earlier, addressing the gathering immediately after the inauguration, Sanjay Jaju, Secretary, ITE&C Government of Andhra Pradesh, said next decade belongs to start ups and idea entrepreneurs. The brand Hyderabad has now more or less settled. We expect good industry prospects.

Whats App, Google, Apple Computers, Facebook, etc., were all started small, in car garages or small places. Facebook was started in a University environment. Today, they are very big enterprises. Flipkart in India, which registered a turnover of Rs. 6,000 crore was started small by two youths.

What you need to succeed is a brilliant idea and plan. Funding comes searching you. IT changed rules of game. There is no limit for expansion, no limit for enterprises, no limit to push ideas. We need ideas that differentiate and are saleable. SMEs have potential to grow. Indian Googles to prosper.

Today, the IT landscape is dominated by big players. About 80 percent of them are big, while the remaining are small. We need a conducive atmosphere for co existence of big and small. You need to have symbiotic relationships. You need partnerships with industry, academia and government system for mutual growth. SMEs must use social media as you are not big enough to have brand ambassadors. Use social media to your advantage. Start looking for a market within you and tap your own potentional.

V. Rajanna, president of ITsAP, said ITsAP has been at the forefront in terms of nurturing the growth of SMEs and start-ups. Andhra was the first state to come up with a special preferential policy for SMEs.

According to NASSCOM, there are more than 15,000 small sized players and this number is growing year on year. These companies are contributing to 9-10 percent of the output of the Indian IT Industry and are infusing the industry with energy and innovation, whether in the areas of digital, data sciences, cloud, Al, eCommerce, education, agriculture, BFSI or energy.

AP has approximately over 10 percent of start-ups in the country and this number is growing rapidly by the day. In fact, there are more than 230 companies operating in Tier II cities like Vizag, Warangal, Vijayawada, Kakinada and Tirupathi and most of them are start ups and SMEs.

Ravi Rao, MD of Valuemomentum and co-ordinator of ITsAP SME forum, said 60 percent of the total participants of the ITsAP's Annual SME meet are outsiders and not the members of ITsAP, which is very good. This meet will benefit IT sector in this region. He urged participants to make use of the opportunity. The objective of the meet is to provide platform, to give them voice, play a role of policy advocacy etc and others.

SMEs are backbone to the economy. If the Indian IT/ITES industry needs to enter the next phase of growth, Small and medium enterprise (SME) sector has the potential to be one of the key drivers. So the meet discussed about technology trends, opportunities, operational challenges, leveraging technologies etc and many issued concerning the SMEs sector.