India IT Industry

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One of the biggest factor that has helped India to make its mark on the world map is its booming IT industrial sector.The contributions being made by the IT industry towards the country's GDP has led to a steady growth of the Indian economy. India's IT industry is regarded as a hub of innovators providing world class technology solutions across the globe.Various international organizations have set up their offices here in India like Google, Accenture etc.It has helped in changing Indian economy from a agricultural based economy to a knowledge driven economy.

IT sector has helped the domestic economy to integrate with the world economy. It has made significant impacts on the lives of many people. It has also helped people settled in far flung topographies to connect with the rest of the world.It has given birth to e-governance practices, as a result of which people get an easy access via e-health, e-education, e-ticketing etc. to the various governmental services

Today almost everything can be done online whether its shopping, ticketing, filing Income Tax returns etc. Though the year 2012 was full of challenges and uncertainties but the IT sector managed to achieve double digit growth rate and attained revenues of USD 108 billion in the fiscal year 2012-2013.

Key drivers of growth in the IT sector
  • Low cost of operation and tax advantages
  • Supportive government policies
  • Availability of technically skilled manpower
  • Rapid introduction of IT technologies in major sectors such as telecom, BFSI.
  • Strong growth in export demand
  • use of new technologies like cloud computing
  • Government established SEZs

Government initiatives

After the economic reforms that were introduced in 1991-1992, various incentives were provided by both the state and central government for better emergence of the IT sector like liberalization of external trade, removing duties on imports of IT products, setting up Export Oriented Units(EOU), setting up of Software Technical Parks(STP) etc.

Government of India has also set up National Task Force on IT and Software development to investigate the possibility of strengthening the economy.

Financial aid

The main source of investment for the entrepreneurs to start up their own IT venture is venture capital.

A massive inflow of FDI in the IT sector is likely to persist in the coming years.The huge inflow of FDI has helped in improving the state of the IT sector and economy both.FDI rose by more than 100% to USD 4.66 billion in May 2011 up from USD 2.21 billion in 2010.This is the highest monthly inflow recorded in past 39 months.

Employment trends

In just a year IT/ITES sector created 7.96 lakh job opportunities by the end of September 2011 as per Economic Survey 2011-2012.Employee base from rural section is likely to raise by more than 10 times by the end of 2013-2014.

Hyderabad very soon is likely to emerge as the India's new IT hub with new players making entries and existing ones trying to expand their reach. Large companies like Google, Infosys, TCS, Thompson Reuters etc are widening their foothold in the city.

Key concerns

With this fast pace sharing of information attributed to rapid development of IT sector , Cyber security and quality management are important areas of concern. In order to avoid such malpractices various BPO companies in India have started adopting the global quality standards like ISO 9001 for ensuring Quality Management and ISO 27000 for emphasizing information security.

Future prospects

As per NASSCOM's research, the IT sector is likely to generate revenues worth USD 130 billion by the end of 2015 which will result in a positive metamorphosis of the Indian economy, pushing it towards high growth rates. Its expenditures are expected to considerably rise in verticals like automotive and healthcare. Government will also try to widen its e-governance measures.

However the most important factor for the continuous growth of the IT sector is innovation. The IT industries must always strive to come with something new and must respond to the needs of the dynamic environment.The IT industrial sector should stand tough in the face of challenges and try to provide more and more end to end technological solutions to their customer base to keep the impetus growing

India IT Company

Last Updated on : 07/15/2013