Digital Transformation will contribute US$154 billion to India’s GDP by 2021, increasing the growth rate by 1.0% yearly, revealed a new research conducted by Microsoft in association with IDC.
The research – Unlocking the Economic Impact of Digital Transformation in Asia Pacific, predicts strong growth of digital transformation across India and APAC (Asia-Pacific) regions. Per the report, by 2021, digital transformation will contribute US$1.16 trillion to the APAC’s GDP, increasing the growth rate by 0.8%.
In 2017, about 6% of Asia-Pacific’s GDP resulted from the consumption of digital products and services like mobility, IoT (Internet of Things), Cloud and AI (Artificial Intelligence). In India alone, 4% of the GDP was derived from the use of such digital products only.
Talking about the growth of digital transformation in India, Anant Maheshwari, president of Microsoft India, said “India is clearly on the digital transformation fast track. Within the next four years, it is estimated that nearly 60% of India’s GDP will have a strong connection to the digital transformation trends.”
He also added, “Organizations are increasingly deploying emerging technologies such as artificial intelligence, and that will accelerate digital transformation led growth even further.”
By 2021, 60% of India’s GDP will be derived from digital products and services. Find out more insights from our ‘Unlocking the Economic Impact of Digital Transformation in Asia Pacific’ study with @IDC https://t.co/gEtB9fzdIf #DigitalTransformation
— Microsoft India (@MicrosoftIndia) April 12, 2018
Digital Transformation has brought increased productivity, cost reduction, customer advocacy and revenue from various new products and services, paving way for higher profit margins. According to the research, these benefits will also be improved by 40% in the next three years.
Amongst the top five benefits obtained by the organizations who were undergoing digital transformation in India, greater productivity and improved customer advocacy were rated the top.
The study also indicated that though 90% of the organizations are in their digital transformation phase, but only 7% can be identified as leaders. This data include organizations that have progressive digital transformation strategies along with at least a third of their total revenue derived from digital products and services.
The top three social benefits of digital transformation as per the business leaders surveyed were:
– Smarter, efficient and safer cities.
– Creation of higher value jobs.
– Digital work and freelance can bring increment to personal income.
Microsoft recommends the following strategies to organizations to become a digital leader:
- Create a digital culture: To create a collaborative business culture with proper data strategy in place.
- Build a digital ecosystem: To enable data sharing externally and internally in an open yet trustful scenario.
- Bet big on AI: AI will be the primary catalyst of digital transformation, hence, organizations need to integrate AI in their business by identifying the high potential areas.
- Embrace micro-revolutions: To invest in micro projects that will bring positive business outcomes.
- Work on future ready skills: To provide training and reskilling the workforce to equip them with future ready skills like critical thinking, problem solving and many more.
The research was conducted with around 1,560 respondents in 15 markets including India, Australia, Hong Kong, China, Japan, Korea, Indonesia, New Zealand, Malaysia, Sri Lanka, Singapore, Philippines, Taiwan, Vietnam and Thailand. Business and IT experts from organizations having more than 250 staff were polled.
Overall, the respondents were mostly the decision makers who are directly involved in shaping the digital transformation of their organization.