The National Association of
Software & Services Companies (NASSCOM) today launched “The Future of Internet in India” report in partnership with Akamai
Technologies, Inc., a global leader in content delivery network
(CDN) services. The study was researched and
created by YourStory.com, a leading media platform for entrepreneurship, in
collaboration with Nasscom and with supporting data from Akamai and other
sources. The report, launched by R Chandrashekhar, President,
NASSCOM and om Leighton, Co-founder, CEO Akamai Technologies,
aims to understand the impact of the Internet on the way we live, learn, work,
shop and connect; and focuses on the future trends that will change the
landscape of India by 2020.
Speaking at the launch, R Chandrashekhar, President,
NASSCOM stated that, “India’s Internet consumption has already exceeded
USA to become No. 2 globally. Keeping into consideration the massive impact
that the Internet is creating across sectors, it has become the greatest
disruptor of our age by changing the way we work, interact socially and live
life in general. By 2020, the Internet is expected to penetrate deeper in the
hinterlands of the country, helping to create more opportunities for everyone.”
“The rapid growth of the Internet and its expansion into
verticals including e-Commerce, Travel and Hospitality, Public Sector,
Financial Technology and Media is a clear indication of the state of things to
come,” said Chandrashekhar.
According to the report, India’s Internet user
base is the second largest after China. Globally, the number of Internet users
is expected to touch 4170 million by 2020. The growth of the Internet has
successfully created a strong ecosystem for new businesses to tap into growing
markets and create solutions to address their demands.
“The start-up ecosystem in India, coupled with
the government’s initiatives make the Internet accessible to every citizen
across the country, is helping India set the stage to enable large numbers of
‘netizens’ to reap the benefits of the Internet. With the rise of digital
natives and the increased adoption of smartphones, Internet penetration in
India will stretch beyond the large cities, as more services and devices come
online. This is also a great opportunity for enterprises to harness the power
of the Internet to innovate and scale operations,” said Sidharth Malik, Vice President and Managing
Director, India, Akamai Technologies.
Online shopping will account for two-thirds of the total
e-Commerce market, edging out travel
According to the report, the overall e-Commerce market
in India
was valued $17 billion in FY 2016, and by 2020, India will have an estimated 702 million smart
phones in use and mobile phones will emerge as the preferred device for
shopping, accounting for 70% of total online shopping. The fashion and
lifestyle segment will emerge as the largest e-tailing category with a 35%
contribution to e-Commerce GMV by 2020, overtaking the consumer electronics
segment which dominates the sales of Indian e-Commerce industry at present.
50% of travel transactions to be online by 2020
Travel across India, for social visits, leisure,
shopping and holidays is all set to increase and more people will be booking
online, taking advantage of competitive pricing offered by online travel agents
(OTAs) and aggregators. An increasing amount of user-generated content online
(views on social media, reviews on websites, etc.) is driving aspirational
travel, tipping the scales in favour of trips that were once only contemplated,
never undertaken.
Media and OTT –– All moving online, one app at a time
The availability of affordable smartphones and tablets
has encouraged the second screen phenomenon. With the rapid adoption of
smartphones and next generation networks, content consumption patterns and
consumer engagement channels are rapidly evolving. Even in its nascent phase,
the video-on-demand (VOD) market is highly competitive in India.
Financial technology –– Disrupting the way India pays
online
Fintech is disrupting financial services and is likely
to have far more widespread impact on society and the Indian economy, both
directly and indirectly. The fintech software market within this was pegged at
$1.2 billion (13-15%[2]). The remaining 87%
focus on services, primarily in payments (60% of the market, including
ATM/Point of Sale [PoS]) and core banking services. Overall, according to the
report, India’s fintech market is expected to grow 1.7x between 2015 and 2020.
While cash-on-delivery may remain the preferred mode of payment for newer
users, keep in mind that use of mobile banking and e-wallets is surging.
In conclusion – The future is bright but there is a
greater need to collaborate
In times to come, while mobile will be a key access
device, larger devices will continue to be important in areas like education
and business. Multiple stakeholders will need to work in tandem to bring the
next generation of Internet users (rural based, mobile centric, local language
focused) online in India. Further, with digital connectivity, the risk of
cyber-crimes also increases. With multitudes of people using e-Commerce and
transacting online, there is a huge need for technologies that can prevent data
theft. India is witnessing a huge demand for security professionals
(technologists and analysts, alike). In line with these growing demands,
security has become one of the key focus areas for NASSCOM Sector Skills
Council, working towards creating the right cybersecurity skill sets for Indian
IT professionals.
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