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The Indian Information Technology (IT) Industry An Overview

The Indian IT industry today, is a major component of the services industry of India. Over the
years, it has become a major growth driver for the economy, contributing significantly to the
GDP of India. The origins of the Indian IT industry date back to the year 1968, when the Tata
Group in collaboration with Burroughs (A major American manufacturer of business
equipment) set up the first software zone, SEEPZ in Mumbai. By 1973, SEEPZ became the
first software export zone contributing almost 80% of the software export in the 1980s.
Indian firms, across all other sectors, largely depend on the IT & ITeS (IT enabled services)
service providers to ensure their business processes are efficient and efficient. In terms of IT
spending, the Indian manufacturing sector rules the roost followed by the automobile,
chemicals and consumer products industries.
NASSCOM (The National Association of Software and Services Companies) predicts that
the IT sector of India will grow by 13-14 per cent in 2013-14 and continue its robust growth
in the years to come. The revenues of the sector are expected to touch US$ 225 billion by the
year 2020.
The IT- ITES sector can be broadly classified into two categories (a) Business Process
Outsourcing (BPO) and (b) Domestic and IT exports. The growth witnessed by the BPO
sector under the aegis of the IT-ITES sector has been quite exceptional. According to
NASSCOM, The IT-BPO sector in India had an aggregated revenue of US$ 100 billion in
FY 2012, where export and domestic revenues stood at US$ 69.1 billion and US $31.7 billion
The IT industry is also provides tremendous employment opportunities. The estimated
employment generation in the FY 2012 was an expected 230,000 providing both direct and
indirect employment. A quick glance at various reports reveals that the top three outsourcing
companies of India are TCS, Cognizant, and Infosys closely followed Wipro and HCL
The IT- ITES sector in India in 2013
The future of the information technology sector in India looks a little bleak future in the year
2013. However, not all is lost. According to the chairman and managing director of Infotech
Enterprises Limited, Mr BVR Mohan Reddy, similar periods of uncertainty in the past have
been instrumental in providing a great platform for organizations to rethink and refine their
strategies and execute initiatives that will lead to an increase strategic competitive advantage
and accelerated growth. The Indian IT sector will witness a predictable slump of growth, with
the figure dropping from 16% last year to a disappointing 11% this year. However, growth in
the allied sectors like healthcare, financial services and insurance offers some solace.

The state of Andhra Pradesh, presently ranked fourth largest amongst the top IT exporters of
the country, has been severely hit by the power supply crisis, which in turn has slowed down
the development of the states IT sector. It is worth mentioning that Andhra Pradesh accounts
for 12% of the total IT export of India and the turnover for 2012 was US$ 8.57 Billion.
The Recession, the free fall of rupees against dollar combined with various other factors has
resulted in a severe decline in the hiring process of the sector. The capacity of the sector to
generate employment has considerably reduced. IT professionals including are now seeking
employment in financial services, insurance services and manufacturing sectors which have
recently witnessed significant growth.

Major IT Hubs(Source : Wikipedia)
Rank City Description
1 Bangalore Silicon Valley of India and leading software exporter from India.
2 Chennai
Second largest exporter of IT and ITES of India, the BPO hub of
India. Boasts of the largest operations centres of TCS and
3 Hyderabad
A major IT hub in India, also known as Cyberabad which consists
HOs of many Multinational corporation companies such
as Google, Facebook and Microsoft.
4 Mumbai
The Financial capital of India, many IT companies have recently
established their offices.
5 Delhi
The National Capital Region comprising Delhi, Gurgaon and Noida
are clusters of software development.
6 Pune
Major Indian and International Firms present in Pune. Pune is also
C-DAC Headquarter.
7 Kolkata
The city is a major back-end operational hub for IBM, Texas
Instruments, Intel, Deloitte, Sun microsystems (Oracle).
8 Bhubaneswar
The capital city of Odisha, an emerging IT and education hub, is
one of India's fastest developing cities.
9 Thiruvanathapuram
The capital of Kerala, now houses all major IT companies including
Oracle, TCS, Infosys, and contributes in IT export of India.
Big Five" IT services companies(Source : Wikipedia)
Firm Revenues Employees Fiscal Year Headquarters
Tata Consultancy Services
billion 254076 2012 Mumbai
Cognizant Technology Solutions $7.05 billion 185045 2012
Teaneck, New
Infosys $6.69 billion 153761 2012 Bangalore
Wipro $5.73 billion 140569 2012 Bangalore
HCL Technologies $4.3 billion 85335 2012 Noida
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