it industries in india

8/8/2019 It Industries in India

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IT

INDUSTRIES IN INDIA

SUBMITTED BY:- SNEHAL U. WAKODIKAR


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The Indian information technology (IT) industry has played a major role in placingIndia on the international map. The industry is mainly governed by IT software andfacilities for instance System Integration, Software experiments, Custom ApplicationDevelopment and Maintenance (CADM), network services and IT Solutions.According to Nasscom's findings Indian IT-BPO industry expanded by 12% duringthe Fiscal year 2009 and attained aggregate returns of US$ 71.6 billion. Out of thederived revenue US$ 59.6 billion was solely earned by the software and servicesdivision. Moreover, the industry witnessed an increase of around US$ 7 million in FY2008-09 i.e. US$ 47.3 billion against US$ 40.9 billion accrued in FY 2008-09

IT Outsourcing in IndiaAs per NASSCOM, IT exports in business process outsourcing (BPO) servicesattained revenues of US$ 48 billion in FY 2008-09 and accounted for more than 77%of the entire software and services income. Over the years India has been the mostfavourable outsourcing hub for firm on a lookout to offshore their IT operations. Thefactors behind India being a preferred destination are its reasonably priced labour,favourable business ambiance and availability of expert workforce. Considering itsescalating growth, IBM has plans to increase its business process outsourcing(BPO) functions in India besides employing 5,000 workforces to assist its growth.

In the next few years, the industry is all set to witness some multi-million dollar agreements namely:

A 5 year agreement between HCL Technologies and News Corp for

administering its information centers and IT services in UK. As per theindustry analysts, the pact is estimated to be in the range of US$ 200-US$250 million

US$ 50 million agreement between HCL Technologies and Meggitt, UK-basedsecurity apparatus manufacturer, for offering engineering facilities.

Global giant Walmart has short listed there Indian IT dealers namelyCognizant Technology Solutions, UST Global and Infosys Technologies for acontract worth US$ 600 million

India's domestic IT Market

India's domestic IT Market over the years has become one of the major drivingforces of the industry. The domestic IT infrastructure is developing contexts of technology and intensity of penetration.

In the FY 2008-09, the domestic IT sector attained revenues worth US$ 24.3 billionas compared to US$ 23.1 billion in FY 2007-08, registering a growth of 5.4%.Moreover, the increasing demand for IT services and goods by India Inc hasstrengthened the expansion of the domestic market with agreements worth rising upextraordinarily to US$ 100 million. By the FY 2012, the domestic sector is estimatedto expand to US$ 1.7 billion against the existing from US$ 1 billion.

Government initiative in India's domestic IT Market


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The Indian government has established a National Taskforce on IT with anaim of formatting a durable National IT Policy for India

Endorsement of the IT Act, which offers an authorized structure to assistelectronic trade and electronic operations.

Major investments in India's domestic IT Market

According to Andhra Pradesh Government the state's SEZs and SoftwareTechnology Parks of India (STPI) will witness an investment of US$ 3.27billion in the next few years.

VMware Inc, San Francisco-based IT firm is looking forward to invest US$100 million by 2010 in India.

EMC Corporation's total Indian assets is expected to reach US$ 2 billion by2014

Future of Indian IT Industry

The Indian IT sector persists to be one of the flourishing sectors of Indian financialsystem indicating a speedy expansion in the coming years. As per NASSCOM, theIndian IT exports are anticipated to attain US$ 175 billion by 2020 out of which thedomestic sector will account for US$ 50 billion in earnings.

In total the export and domestic IT sector are expected to attain profits amounting toUS$ 225 billion along with new prospects from BRIC nations and Japan for itsoutsourcing operations.

Last Updated on 15 March 2010

Software Companies in India

Aditya Technologies Pvt Ltd Asset Infotech Ltd Atari Informatics Ltd Baan Info Systems India P Ltd HCL Infosystems Ltd

Hexaware Technologies Ltd Iflex Solutions Ltd Igate Global Solutions Ltd Infosys Technologies Ltd Larsen & Toubro Ltd Mastek Ltd NIIT Ltd IBM India Aftek Nucleus Software Vakrangee Softwares Cybertech Systems Eonour Technologies Ltd
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Patni Computer Systems (P) Ltd Polaris Software Lab Ltd

B-commerce Infosystems Pvt Ltd Cerulean Information Tech. Pvt Ltd CMC Ltd CMS Computers HCL Corporation Ltd Satyam Computer Services Ltd Tata Consultancy Services Tata Infotech Ltd Wipro Ltd Cranes Software Geometric Software Solution Computech International Encore Software DSQ Software Digital Globalsoft Danlaw Technologies
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India IT Software and Services Industry

US$ billion

Bolstered with such a significant, technically sound resource base, thesoftware industry has grown unimpeded. With a compounded annual growthrate of more than 50% between 1992 and 2001, the Indian software sector has expanded almost twice as quickly as the world-leading U.S. softwareindustry did during the same period, although from a smaller base.Indias software industry statistics illustrate the massive strides achieved bythis sector and the opportunities the future holds. According to NASSCOMsestimates for the fiscal year 2000-01, the countrys software industry is worth$8.26 billion, up from $100 million ten years ago. A study conducted byrenowned consultancy firm McKinsey and Co., for NASSCOM, has provenwhy India is becoming the off-shore software development out-sourcesdestination of choice. According to the NASSCOM-McKinsey study, the Indiansoftware industry is expected to gross US$50 billion in exports in 2008! This isbased on an average growth rate of 35 percent per year. The industry is wellplaced to achieve this target.


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Software Export as a percentage of Indias Total Export

While the industry has been growing at above average growth rates, softwaredevelopment activity is not confined to a few cities in India. Software developmenthotspots, such as Bangalore, Hyderabad, Mumbai, Pune, Chennai, Calcutta, Delhi-Noida-Gurgaon belt, Vadodara, Bhubaneswar, Ahmedabad, Goa, Chandigarh,

Trivandrum are all developing quickly. They boast state-of-the-art software facilitiesand the presence of a large number of overseas vendors. A large part of Indiassuccess in the software sector is due to the crucial role played by the State of Karnataka in promoting and providing a boost to IT. Karnataka has emerged as thecomputer capital and center of high-tech industries, especially software. Bangalorehas for long been known as Indias answer to Silicon Valley, and this is the citywhere most large software companies have set up shop and operate out of state-of-the-art facilities. The Government of Karnataka has also been extremely positiveabout the software and services marketplace and has helped create the relevanttelecom and policy infrastructure conducive to the growth of this sector.

The dynamic industrial policy declared in 1996, with comprehensive packagesof incentives and concessions, has ensured a productive ground for variousindustries. The hardware and software industries have now brought about arevolution of sorts under these schemes. Various institutions and computer trainingcenters have contributed to the large number of trained and talented professionals.

The City of Bangalore has positioned itself to help market the software industry. Thisis also why Bangalore has been playing host to international-class conferences,workshops and exhibitions devoted to the software cause.

In fact, the Technopolis of India will be holding one of the largest IT events thisyear, for the fourth consecutive time Bangalore IT.COM 2001, Conference andTradeshow.


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Under one sprawling banner, over a short but intensive span of five days, Bangalorewill see over 500 IT and Telecom giants from all over the world. There will be over 75,000 business visitors, plus corporate buyers, decisionmakers, visionaries and technology gurus converging from key international marketsacross the U.S., Europe, India and Southeast Asia. This years Bangalore IT.COM

will also feature a unique Global Buyer-Seller Meet, a forum for generatingbusiness leads, structured networking and pre-fixed meetings for international anddomestic outsourcing partners.

In addition, the visitors can experience Bangalores hi-tech climate. The city has thehighest number of engineering colleges in the world, almost 50 percent of the worldsSEI CMM Level 5 companies, COPC/ISO recognized Customer Interaction Centers,and over 103 R&D Institutions. It is, in fact, home to GEs biggest R&D Center outside the U.S.the Jack Welch Technology Center, which hires over 200PhDs/scientists every month! To top it all, Bangalore has just been ranked the fourthbest Global hub of technological innovation by none other than the United Nations.


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The Indian Information Technology industry accounts for a 5.9% of the country'sGDP and export earnings as of 2009, while providing employment to a significantnumber of its tertiary sector workforce. More than 2.3 million people are employed inthe sector either directly or indirectly, making it one of the biggest job creators inIndia and a mainstay of the national economy. In March 2009, annual revenues fromoutsourcing operations in India amounted to US$ 60 billion and this is expected toincrease to US$225 billion by 2020. The most prominent IT hub is IT capitalBangalore . The other emerging destinations are Chennai, Hyderabad , Mumbai ,Pune , NCR, Jaipur and Kolkata . Technically proficient immigrants from India sought

jobs in the western world from the 1950s onwards as India's education systemproduced more engineers than its industry could absorb. India's growing stature inthe information age enabled it to form close ties with both the United States of America and the European Union .

India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. [1] The first software export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT park. Morethan 80 percent of the country's software exports happened out of SEEPZ in 80s. [2]

Each year India produces roughly 500,000 engineers in the country, out of them only25% to 30% possessed both technical competency and English language skills,although 12% of India's population can speak in English. India developed a number of outsourcing companies specializing in customer support via Internet or telephoneconnections. By 2009, India also has a total of 37,160,000 telephone lines in use, a

total of 506,040,000 mobile phone connections, a total of 81,000,000 Internet userscomprising 7.0% of the country's population,and 7,570,000 people in the countryhave access to broadband Internet making it the 12th largest country in the worldin terms of broadband Internet users . Total fixed-line and wireless subscribersreached 543.20 million as of November, 2009.

Formative years (till 1991)

The Indian Government acquired the EVS EM computers from the Soviet Union ,which were used in large companies and research laboratories. In 1968 TataConsultancy Services established in SEEPZ , Mumbai [1] by the Tata Group werethe country's largest software producers during the 1960s. As an outcome of thevarious policies of Jawaharlal Nehru (office: 15 August 1947 27 May 1964) theeconomically beleaguered country was able to build a large scientific workforce,second in numbers only to that of the United States of America and the Soviet Union.On 18 August 1951 the minister of education Maulana Abul Kalam Azad ,inaugurated the Indian Institute of Technology at Kharagpur in West Bengal .Possibly modeled after the Massachusetts Institute of Technology these institutionswere conceived by a 22 member committee of scholars and entrepreneurs under thechairmanship of N. R. Sarkar.
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Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research. By 1960 as many as 10,000Indians were estimated to have settled in the US. Kapur (2006)By the 1980s anumber of engineers from India were seeking employment in other countries. Inresponse, the Indian companies realigned wages to retain their experienced staff.

The United States technological lead was driven in no small part by the brain power of brilliant immigrants, many of whom came from India. The inestimable contributionsof thousands of highly trained Indian migrants in every area of American scientificand technological achievement culminated with the information technology revolutionmost associated with California s Silicon Valley in the 1980s and 1990s. [11]

The National Informatics Centre was established in March 1975. The inception of The Computer Maintenance Company (CMC) followed in October 1976. Between1977-1980 the country's Information Technology companies Tata Infotech, PatniComputer Systems , and Wipro, had become visible. The 'microchip revolution' of the1980s had convinced both Indira Gandhi and her successor Rajiv Gandhi thatelectronics and telecommunications were vital to India's growth and development.MTNL underwent technological improvements. Between 1986-1987, the Indiangovernment embarked upon the creation of three wide-area computer networkingschemes: INDONET (intended to serve the IBM mainframes in India), NICNET (thenetwork for India's National Informatics Centre), and the academic research orientedEducation and Research Network (ERNET).

19912001

Regulated VSAT links became visible in 1985. Desai (2006) describes the stepstaken to relax regulations on linking in 1991:

In 1991 the Department of Electronics broke this impasse, creating a corporationcalled Software Technology Parks of India (STPI) that, being owned by thegovernment, could provide VSAT communications without breaching its monopoly.STPI set up software technology parks in different cities, each of which providedsatellite links to be used by firms; the local link was a wireless radio link. In 1993 thegovernment began to allow individual companies their own dedicated links, whichallowed work done in India to be transmitted abroad directly. Indian firms soonconvinced their American customers that a satellite link was as reliable as a team of programmers working in the clients office.

Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Servicein 1991, the 64 kbit/s leased line service in 1992, and commercial Internet access ona visible scale in 1992. Election results were displayed via National InformaticsCentre's NICNET.

The Indian economy underwent economic reforms in 1991, leading to a new era of globalization and international economic integration. Economic growth of over 6%annually was seen between 1993-2002. The economic reforms were driven in partby significant the internet usage in the country. The new administration under Atal
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Bihari Vajpayee which placed the development of Information Technology amongits top five priorities formed the Indian National Task Force on InformationTechnology and Software Development.

Wolcott & Goodman (2003) report on the role of the Indian National Task Force onInformation Technology and Software Development:

Within 90 days of its establishment, the Task Force produced an extensivebackground report on the state of technology in India and an IT Action Plan with 108recommendations. The Task Force could act quickly because it built upon theexperience and frustrations of state governments, central government agencies,universities, and the software industry. Much of what it proposed was also consistentwith the thinking and recommendations of international bodies like the World TradeOrganization (WTO), International Telecommunications Union (ITU), and WorldBank . In addition, the Task Force incorporated the experiences of Singapore andother nations, which implemented similar programs. It was less a task of inventionthan of sparking action on a consensus that had already evolved within thenetworking community and government.

The New Telecommunications Policy, 1999 (NTP 1999) helped further liberalizeIndia's telecommunications sector. The Information Technology Act 2000 createdlegal procedures for electronic transactions and e-commerce.

Throughout the 1990s, another wave of Indian professionals entered the UnitedStates. The number of Indian Americans reached 1.7 million by 2000. This

immigration consisted largely of highly educated technologically proficient workers.Within the United States, Indians fared well in science, engineering, andmanagement. Graduates from the Indian Institutes of Technology (IIT) becameknown for their technical skills. The success of Information Technology in India notonly had economic repercussions but also had far-reaching political consequences.India's reputation both as a source and a destination for skilled workforce helped itimprove its relations with a number of world economies. The relationship betweeneconomy and technologyvalued in the western world facilitated the growth of anentrepreneurial class of immigrant Indians, which further helped aid in promotingtechnology-driven growth.

2001present
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Infosys Media Centre in Bangalore.

Millenium Tower in Kolkata , Salt Lake Sector-5, a mojor IT hub in the city.

Tidel Park one of the largest software parks in Asiawas set up on the July 4,2000 in Chennai , to aid the growth of Information Technology in Tamil Nadu .

Cyber Towers at Hitech City in Hyderbad
http://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Tidel_Parkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/File:Cyber_Towers_Madhapur_Hyderabad.jpghttp://en.wikipedia.org/wiki/File:Tidel_Park.jpghttp://en.wikipedia.org/wiki/File:Millenium_tower_kolkata.jpghttp://en.wikipedia.org/wiki/File:BangaloreInfosys.jpghttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Tidel_Parkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamil_Nadu


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Patni Knowledge Park, Airoli, Navi Mumbai

Cognizant's Delivery Center in Pune

India is now one of the biggest IT capitals in the modern world.

The economic effect of the technologically inclined services sector in Indiaaccounting for 40% of the country's GDP and 30% of export earnings as of 2006,while employing only 25% of its workforceis summarized by Sharma (2006):

The share of IT (mainly software) in total exports increased from 1 percent in 1990 to18 percent in 2001. IT-enabled services such as backoffice operations, remotemaintenance, accounting, public call centers , medical transcription, insurance claims,and other bulk processing are rapidly expanding. Indian companies such as TCS ,Wipro, and Infosys may yet become household names around the world.

Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. India's second and third largest software companies are head-quartered in Bangalore, as are many of the global SEI-CMM Level 5 Companies.

And Mumbai too has its share of IT companies once that are established as well asstart-ups, and these include Reliance , TCS, Patni , LnT Infotech , i-Flex, WNS, Shine,Naukri, Jobspert etc. and these IT and dot com companies are ruling the roost of Mumbai's relatively high octane industry of Information Technology .

Such is the growth in investment and outsourcing, it was revealed that Cap Geminiwill soon have more staff in India than it does in its home market of France with21,000 personnel+ in India. [12]

On 25 June 2002 India and the European Union agreed to bilateral cooperation inthe field of science and technology. A joint EU-India group of scholars was formedon 23 November 2001 to further promote joint research and development. India
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holds observer status at CERN while a joint India-EU Software Education andDevelopment Center is due at Bangalore .

India's IT industry (USD bn) [Source: NASSCOM ]

Particulars FY 2004 FY 2005 FY 2006 FY 2007E

IT Services 10.4 13.5 17.8 23.7

- Exports 7.3 10.0 13.13 18.1

- Domestic 3.1 3.5 4.5 5.6

ITES-BPO 3.4 5.2 7.2 9.5

- Exports 3.1 4.6 6.3 8.3

- Domestic 0.3 0.6 0.9 1.2

Engineering services, R&D and Softwareproducts 2.9 3.9 5.3 6.5

- Exports 2.5 3.1 4.0 4.9

- Domestic 0.4 0.7 1.3 1.6

Hardware 5.0 5.9 7.0 8.2

Total IT industry 21.6 28.4 37.4 47.8

- Exports 13.4 18.2 24.1 31.9
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- Domestic 8.3 10.2 13.2 15.9

Top Seven IT Hubs in India

Ranking City/Region Description

1 Bangalore Popularly known as the capital of the Silicon Valley of India iscurrently leading in Information Technology Industries in India.

2 ChennaiIt is also called as India's second silicon valley. With better infrastructure and manpower Chennai is likely to beatBangalore out of its title in the coming years.

3 HyderabadHyderabad which has good infrastructure and goodgovernment support is also a good technology base inIndia .tuated.

4 Pune

Pune, a major industrial town, hosts numerous multinationaland national software giants along with BPO and KPO firms.World class SEZs like Hinjawadi IT park and Magarpatta citygive Pune a distinct advantage. The city is a major educationalhub and churns out thousands of technocrats every year.

5 KolkataKolkata which is slowly becoming a major IT hub in near future. Some of the well known technological corporations are

si

6 NCR

The National Capital Region of India comprising Delhi, Gurgaon , Faridabad , Noida , Greater Noida and Ghaziabad arehaving ambitious projects and are trying to do every possiblething for this purpose.

7 Mumbai

Popularly known as the commercial, entertainment, financialcapital of India , This is one city that has seen tremendousgrowth in IT and BPO industry, it recored 63% growth in 2008.[13] TCS , Patni , LnT Infotech , I-Flex WNS and other companiesare headquartered here.
http://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Silicon_Valley_of_Indiahttp://en.wikipedia.org/wiki/Information_Technologyhttp://en.wikipedia.org/wiki/Chennai,_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Technologyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/NCRhttp://en.wikipedia.org/wiki/National_Capital_Regionhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Faridabadhttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Greater_Noidahttp://en.wikipedia.org/wiki/Ghaziabad,_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Information_technology_in_India#cite_note-12http://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Patni_Computer_Systemshttp://en.wikipedia.org/wiki/Larsen_%26_Toubro_Infotechhttp://en.wikipedia.org/wiki/Oracle_Financial_Services_Softwarehttp://en.wikipedia.org/wiki/WNS_Global_Serviceshttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Silicon_Valley_of_Indiahttp://en.wikipedia.org/wiki/Information_Technologyhttp://en.wikipedia.org/wiki/Chennai,_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Technologyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/NCRhttp://en.wikipedia.org/wiki/National_Capital_Regionhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Faridabadhttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Greater_Noidahttp://en.wikipedia.org/wiki/Ghaziabad,_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Information_technology_in_India#cite_note-12http://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Patni_Computer_Systemshttp://en.wikipedia.org/wiki/Larsen_%26_Toubro_Infotechhttp://en.wikipedia.org/wiki/Oracle_Financial_Services_Softwarehttp://en.wikipedia.org/wiki/WNS_Global_Services

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