)
When India’s IT-BPM industry is increasingly depending on innovation to achieve its projected growth of $300 billion by 2020 from the current size of $108 billion, creating, managing and monetizing intellectual property (IP)s is expected to drive the industry in the coming decade, KPMG In India report said today.
“Though revenues of a company will not go up because of high intellectual property, its (the company’s) valuation is surely expected to shoot up,” KPMG said today.
ALSO READ: IT industry needs to reach out to domestic market: NASSCOM
So far Indian IT-BPM companies have achieved only limited success in the field of IP, their initial growth having driven by the cost advantage over the North America and European destinations. In the IP space the Indian industry is very much in the initial stage. According to various reports, the Indian IT firms spend just around two% of their total revenues on research and development as compared to 7-8% by companies in North America.
“It is this gap the Indian companies need to address if they want to move up in the global innovation map,” said Pradeep Udhas, chairman of the Indian Global Programme at KPMG (India).
According to a study released by KPMG at the Nasscom annual leadership forum today, India lags even countries like Israel in areas of availability of talent, access to technology infrastructure and even access to capital.
“In Israel, there are various external factors which are compelling the country to aggressively focus on innovation, especially in areas of defence and aerospace. I think, a Indian companies are now slowly realizing the importance of the external factors and innovating,” said R Chandrasekharan, executive vice chairman of Nasdaq-listed Cognizant Technology Solutions.
