The central and state governments and businesses in India are deploying artificial intelligence (AI) technology for applications such as digital assistants, biometric recognition, targeted advertisements, online recommendation engines, and cab aggregators. The business and government organizations have become more aware about the efficiencies and growth opportunities provided by the digital transformation solutions. Also, public agencies are utilizing AI-enabled applications, such as robotics and image and speech recognition solutions, to improve defense technology and equipment, and for digital transformation.
Additionally, the surging adoption of
internet of things (IoT) technology is a prime factor driving the Indian digital transformation market. IoT aids in developing smart products
through reliability, new functionality, product utilization, and greater
product capabilities. Indian companies are employing IoT to expand their
businesses and generate new and improved user experience. This growth driver
has the potential to increase the market value from $24.5 billion in 2018 to $710.0
billion by 2024, advancing at a CAGR of 74.7% during the forecast period
(2019–2024).
Both AI and IoT solutions are extensively
deployed in the banking, financial services, and insurance (BFSI) sector to
develop new interface and make processes more consumer-centric. The BFSI sector
needs to reconfigure each channel and accelerate its digital transformation to
meet customer demands. Financial organizations of India are enhancing their
digital service offerings and transforming into efficient digital organizations
to increase their businesses. Additionally, end-use industries like telecom and
information technology (IT), retail, manufacturing, and transportation and
logistics are also adopting digital solutions to scale their businesses and
improve customer interaction.
The offering segment of the Indian digital
transformation market is bifurcated into solution and service. Between the
two, the services category is projected to exhibit the fastest growth in the
foreseeable future, on account of the increasing number of digital initiatives
by the government, hefty foreign direct investment (FDI) inflows, and easy
availability of low-cost and highly skilled manpower. The government
initiatives like Digital India and Smart Cities are creating lucrative
opportunities for service sectors such as energy, communication, technology,
healthcare, and banking.
According to P&S Intelligence, South
India has witnessed the fastest digital transformation, owing to the presence
of major IT hubs in the country. The leading IT hubs, such as Chennai, Kochi, Bengaluru,
Mysuru, Mangalore, and Trivandrum, are present in southern part of India, owing
to which this region has been observing a rapid transformation. South India has
also been successful in implementing several technological and industrial
initiatives, on account of the harmonious industrial relations with
conglomerates and robust economic growth.
Currently, the Indian digital
transformation market is dominated by key players such as International Business
Machine (IBM) Corporation, Kellton Tech Solutions Ltd., and Infosys Ltd. These
industry leaders are primarily focusing on content differentiation and
customization to surpass the profit of other players like Sasken Technologies
Ltd., Datamatics Global Services Ltd., Dell Technologies Inc., Microsoft
Corporation, Clarion Technologies Inc., Accenture plc., Tata Consultancy
Services Ltd., Cognizant Technology Solutions Corporation, Mindtree Ltd., HCL
Technologies Ltd., Tech Mahindra Ltd., and Cisco Systems Inc.
Thus, the penetration of new-age
technologies, such as AI and IoT, are playing a pivotal role in the digital
transformation of India. With the escalating focus on customer satisfaction and
improved products and services, the end-use industries in the country are
focusing on deploying digital solutions in daily operations.
