IT Industry

Overview:

Information Technology is one of the most important industries in the Indian economy. The IT industry of India has registered huge growth in recent years. India's IT industry grew from 150 million US Dollars in 1990-1991 to a whopping 50 billion UD Dollars in 2006-2007. In the last ten years the INFORMATION TECHNOLOGY in India has grown at an average annual rate of 30%.

The liberalization of the Indian economy in the early nineties has played a major role in the growth of the IT industry of India. Deregulation policies adopted by the Government of India have led to substantial domestic investment and inflow of foreign capital to this industry. In 1970, high import duties had forced IBM to leave India. However, after the early nineties, many multi national IT companies, including IBM, have set up their operations in India. During the ten year period 1992-2002, the Indian software industry grew at double the rate as the US software industry.

Some of the major reasons for the significant growth of the IT industry of India are -

• Abundant availability of skilled manpower
• Reduced telecommunication and internet costs
• Reduced import duties on software and hardware products
• Cost advantages
• Encouraging government policies
  Some of the major companies in the IT industry of India are - 
• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• IBM
• HP
• HCL
• Cognizant Technology Solutions (CTS)
• Patni
• Satyam
• NIIT
  India's IT industry caters to both domestic and export markets. Exports contribute around 75% of the total revenue of the IT industry in India. The IT industry can be broadly divided into four segments -
• IT services
• Softwares (includes both engineering and Research and Development)
• ITES-BPO
• Hardware
  
  

  HR SOFTWARE-

  
  
  Cost effective payroll and HR software solutions from KCS.

  
  

  
  Government initiative in India's domestic IT Market
  

  • The Indian government has established a National Taskforce on IT with an aim of formatting a durable National IT Policy for India
  • Endorsement of the IT Act, which offers an authorized structure to assist electronic trade and electronic operations.

  Major investments in India's domestic IT Market
  

  • According to Andhra Pradesh Government the state's SEZs and Software Technology Parks of India (STPI) will witness an investment of US$ 3.27 billion 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 by 2014

  
  Future of Indian IT Industry
  
  The Indian IT sector persists to be one of the flourishing sectors of Indian financial system indicating a speedy expansion in the coming years. As per NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion by 2020 out of which the domestic sector will account for US$ 50 billion in earnings.
  
  In total the export and domestic IT sector are expected to attain profits amounting to US$ 225 billion along with new prospects from BRIC nations and Japan for its outsourcing operations.