Indian IT industry will reach a revenue of $300-$350 billion over the coming five years, as per the McKinsey report. Digital and cloud services will propel the Technology sector.
Indian IT industry will have a growth rate higher than the 7.5% that has been growing exponentially in the last five years. Parts of the report’s findings were discussed in an Ongoing session with the Nasscom Technology Leadership Forum.
Digital and cloud services will drive this growth, which takes their total share to 50% from the current 30%. McKinsey’s report also states that the cloud and digital services part will be approximately a $700 billion opportunity. Moreover, it also adds that the growth in the cloud and digital will witness an accelerated decline in the traditional services at 8-10% per annum compared to the 3-4% seen in the last five years.
Noshir Kaka, the senior partner at McKinsey and Company, said that the report lays the growth drivers’ foundation for the next 5-10 years. On interacting with the client, they found that technology is central to their recovery from Covid. They believe that technology spends will leap back in a significant way.
The report also explained that enterprise technology intensity is likely to amplify to 5% of revenues. Technology natives and digital reinventors will drive around 75% of the enterprise tech spend. To capture this growth at a faster pace, companies will need to rethink their new strategy on the customer segment and service lines. McKinsey also pointed out that technology business models are reshaping globally, and the IT industry needs to refocus.
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