Presented By Chandana G Saravana Kumar M

Classification of IT Industry
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IT services : Information services outsourcing, packaged software support and installation, systems integration, processing services, IT training and education. Engineering Services : Mechanical design, Electronic system design, Design validation testing. ITES services : Use telecom networks or internet. Remote maintenance, back office operations, Data processing, call centers, BPOs E-business : Business on internet

Source:http://www.naukrihub.com/india/informationtechnology/overview/
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Evolution of Indian IT sector

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Tatas were the pioneers TCS in 1968. National Informatics Centre was established in 1975 and CMC was started in 1976. IBM quit India in 1977 in protest against Foreign Exchange Regulation Act. First two multinationals to enter the industry are Citibank Overseas Software Limited(COSL) in 1984 and TI in 1985. Liberalization of Indian economy in 1991 - new era of globalization and international economic integration. Y2K problem India was looked as destination given low cost operations and talent pool. Evolved from testing and maintenance to full service players providing testing services, infrastructure services, consulting and system integration.
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Facts and Figures

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India's software and services exports were $17.2 billion in the fiscal year 2009-2010. IT s share of Indian Exports increased from 4% (1998) to 26%(2010) As a proportion of national GDP, IT-BPO sector revenues increased from 1.2%(1998) to an estimated 6.1%(2010) Indian IT-BPO grew by 12 per cent in FY 2009 to reach US$ 71.7 billion in aggregate revenues

Source : http://www.nasscom.in/upload/SR10/ExecutiveSummary.pdf
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Contd..
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In IT BPO sector, direct employment is estimated to be over 2.2 million and indirect jobs 8.2 million Software and services employ over 1.7 million professionals. Total PC sales with desktop computer and notebooks taken together, were 14 lakhs units.

Source : http://www.nasscom.in/upload/SR10/ExecutiveSummary.pdf
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Key locations

Prominent Players

Growth drivers for the industry..

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Availability of quality talent at cost effective rates Enhanced connectivity Developing Infrastructure Increased spend by the government in e-Governance initiatives

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Supportive regulatory policies by Indian government Extremely quality focused Indian based centres accounting for the largest number of quality certifications.

Regulatory Framework
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IT Act 2000 An act to provide legal recognition to transactions carried out by means of electronic data, interchange and other means of electronic commerce, commonly referred to as e-commerce. 100% customs duty exemption on imports for Set up of STPIs and creation of SEZs. Tax holidays and competitive incentives. Monitored by Department of Information Technology (DIT) NASSCOM and MAIT to promote growth of IT industry.
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Challenging factors
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Retention and Motivation of workforce Currency fluctuation and volatility for most major currencies

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Weak R&D capability Shortage of skilled manpower(poor quality of technical graduates)

Growing competition (China, Eastern Europe[BPO])

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Adverse effects
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Diversion of a large tract of highly trained professionals. Science/Engineering/Technology graduates moving away from core areas to IT Creation of a large quantity of un-employable scientists and engineers by emphasising quantity over quality Lack of students pursuing higher education in Indian institutes Rising social inequality in the IT hubs

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Recent Trends
Cloudcomputing, Saas, Virtualization y E-Governance
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