The Indian technology and services industry is on track to reach its goal of $200-225 billion in revenues by 2020 and may even touch $350 billion by 2025, says a report released by industry body Nasscom.

The report, ‘Perspective 2025: Shaping the Digital Revolution’, outlines the roadmap for this new environment and is based on research conducted for over a year by international consultancy McKinsey & Company.

Export target Of the $350 billion, exports are expected to account for about $280 billion and the rest will come from the domestic market, said the report.

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, it said, adding that the global and domestic market presents an opportunity for companies that can build expertise in these new technologies and deliver value through them.

“The technology and services industry in India has become a transformational partner for its customers. The report identifies innovative and disruptive technologies that will shape the enterprise of the future,” BVR Mohan Reddy, Chairman, Nasscom, said. The report also stated that technology is becoming a dominant factor in capital expenditure, making returns on technology investment a key success factor for enterprises.

With a $6-trillion cumulative technology capital investment globally, the economic landscape will be split in three types of enterprises — digital leaders and attackers, smart followers, and digital laggards, it said.

Each of these enterprises will operate a mix of disruptive, transformative, and traditional technology, mirrored in their investment choices. Driven by the adoption of digital technology, the total addressable market for global technology and business services will likely expand to about $4 trillion by 2025, growing at an average annual rate of about 3.6 per cent.

“Our aspiration is to build cutting-edge solutions and services from India that will shape the digital revolution globally,” Reddy added.

Digital transformation The report said that the digital transformation impacting the global economy is also creating new imperatives for India’s growth, with many companies adopting digital technologies into their business models.

For 2015 and beyond, India’s growth rate is likely to be ahead of many other leading economies such as China, Brazil and Russia. However, certain steps are needed to become a global centre for innovation in digital technology, said R Chandrasekhar, President, Nasscom.

“There has to be concerted action by the government, industry, academia and Nasscom to create the right conditions for the technology and services industry to sustain its momentum,’’ he said.

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