The Indian IT industry which is going through a bad patch, due to slowing demand, has a reason to cheer as the advent of GST regime is expected to prove a $1 billion opportunity. The two key components of the GST market are storage and security services.
The governments both at centre as well as the states will require huge storage system to store the data. The IT firm providing cloud base storage system will profit under Goods and services Tax (GST).
Along with the storage system, the security of the accommodated data is very important since the data are sensitive by nature, as President of Enterprise Business, Manoj Chugh said. Another fountainhead opportunity will be for the analytics and automation tools as all these stored data need to derive insight. Chugh added that there will be a big demand for huge data analytic tools and services.
GST will be a clear Rs. 5,000-6,000 crore opportunity for IT sectors. Managing director of research firm IDC (South Asia), Jaideep Mehta said that IT firms in India, both big and small, are looking forward to this great opportunity. The multinational firms are also speeding up for the same.
Agreeing Mehta’s perception Neel Ratan, Regional Managing Partner (PWC), said that the opportunity will be well distributed across the IT spectrum. He believes that no big companies will get the lion share, it will be a joint project for 50-100 IT companies.
Debdeep Sengupta, President and Managing Director SAP (Indian Subcontinent), said that the ending of complexity, leakages and revenue inefficiency era will help business leaders to focus on profitability. Today, businesses of all size have a lifelong opportunity to accelerate their growth digitally.
Nikhil Rungta, the Managing Director of Intuit QuickBooks India, said that GST will be a catalyst for the businesses to adopt digitization and automate their workflow. Under GST, more small businesses will go digital.
Tech Mahindra’s Chugh also pointed out that the economy will get a major boost and will help the GDP with this simplified tax regime. This will also enhance the technology budget of the It organizations.
Chugh further added that IT firms in India, both big and small, must upgrade their ERP systems and IT applications to comply with the GST. They also need to migrate their data to the GST framework and update their process re-engineering piece for a highly-optimized supply chain for the multiple taxpayers.