8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 1/19
INDUSTRY REVIEW OF THE INDIAN IT SECTOR
Submitted
toProf Dr.R.Venkateswarlu
and
Assist Prof Dr.B.Padma Narayan
By
R.Harshita Rao
MBA (IB)
Section ±B
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 2/19
Abstract
India has emerged as an µIT Super power¶, especially in the field of software and related
services export. The major characteristic of the Indian IT industry is exports and domestic.
The IT industry has a major contribution to the GDP of the country. Over the ten years time
the share of IT sector recorded a 5 fold increase from about 1.2 percent in 1997-98 to 5.5 per
cent in 2007-08. The IT sector has a major contribution to the employment in the nation.
Direct employment has grown at a compound annual growth rate (CAGR) of 26 per cent in
the last decade, making it the largest employer in the organized private sector of the country.
The IT Export has grown by value Rs 17,150 crore (US $ 4 billion) in 1999-00 and to an all
time high of Rupees 163,000 (US $ 40.8 billion) in 2007-08.There are few major tier one
companies and other players. There are many global players who have a major share in
domestic market . There is a lot of importance for the international quality standards and the
Indian companies have moved from ISO to CMM (Capacity Maturity Model). NASSCOM is
proactive in pushing this cause for ensuring that the Indian Information Security environment
benchmarks with the best across the globe.
The growth projection for the year 2011 and 2012 is very interesting. The major initiative by
the government is the formation of STPI (software technology parks of India). During the
year 2008-09, 572 new units were registered under STP Scheme. The opportunity lies ahead
targets for software export is $50 million out of a production of $87 billion. Given the present
growth rate of this sector the industry can very well achieve this target. But equally there lies
challenges- sustainability of high growth rate of software exports in future, Shortage of
skilled labour, Low diffusion of information technology in the domestic market i.e. weak
domestic software market. The future outlook will help us understand in which direction we
are heading.
Introduction
The IT-BPO sector has become one of the most significant growth catalysts for the Indian
economy. In addition to fuelling India¶s economy, this industry is also positively influencing
the lives of its people through an active direct and indirect contribution to the various socio-
economic parameters such as employment, standard of living and diversity among others.
The industry has played a significant role in transforming India¶s image from a slow moving
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 3/19
bureaucratic economy to a land of innovative entrepreneurs and a global player in providing
world class technology solutions and business services.
On its part, since 2009, as a result of an altered demand landscape, the sector had begun to
transform itself by actively diversifying beyond core offerings and markets through new
business and pricing models, specialise to provide end-to-end service offerings with deeper
penetration across verticals, transform process delivery through re-engineering and enabling
technology, innovate through research and development and drive inclusive growth in India
by developing targeted solutions for the domestic Indian market. When demand returned in
2010, the combined effect of all these factors helped India grow faster than its competitors,
accounting for almost 90 per cent of incremental growth in the global sourcing market.
Characteristics of the Indian Software Industry
The Indian software sector displays many unusual features from an Indian perspective. The
most obvious one is its export orientation, accounting for 65% of the total software revenue.
There are important qualitative differences between the export market and the domestic
markets. The first relates to different types of software developed. The domestic market has a
higher proportion of revenues from the sale of software packages and products. Whereas
products accounted for nearly 40% of the domestic market, they account for a little fewer
than 10% of exports. Over 80% of exports are software services including custom software
development, consultancy and professional services. The second difference between the
domestic and export sectors relates to the stages of software development.
Domestic
A large fraction of the domestic software industry consists of resale of software packages
developed by foreign, principally US, firms, thus overstating the extent of software written
for the domestic market. On the other hand, there is a great deal of in-house software written
by users, especially large Indian firms that is not being captured by these figures. A number
of Indian software firms have also developed software packages aimed at the domestic
market. However, with very few exceptions, these packages have not been very successful.
Although it is tempting to point to weak intellectual property rights as a culprit for the failure
of Indian firms to develop successful packages, our interviews suggest that at least as
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 4/19
important, if not more, has been the lack of experience, especially design and marketing
experience, necessary to produce a successful product. Firms that have had domestic
experience with consulting do not appear to derive any advantage from it in the export
market. Given the simpler and more routine tasks involved in current software exports, the
sophisticated capabilities and expertise that firms had developed from serving domestic
customers have not been of great value to them in the export market.
Exports
As we have seen, Indian software exports consist primarily of software services. The
activities carried out by most firms in India are essentially maintenance tasks for applications
on legacy systems such as IBM mainframe computers, development of small applications and
enhancements for existing systems, migration to client-server systems, often referred to as
porting or re-engineering. Although Y2K projects were an important source of revenue, most
of the leading Indian software firms have limited their dependence on such projects.
Managers at most of the US firms agree that the type of work outsourced is neither
technologically very sophisticated nor critical to their business. Requirement analysis and
high-level design is typically done either inhouse or by US based consultants.
The projects undertaken are typically small. Although competition from other countries such
as Philippines and China is typically cited in the press, most software exporters indicate that
their main competitors are located either in the US or in India itself. Many MNCs have set up
liaison offices and subsidiaries as well. Increasingly, however, the objective is to use India as
a place for software development as well, rather than merely as a place to sell. Some
companies have established, or are in the process of doing so, software development centres
in India, and are exporting packages or components of systems to other countries from India.
The work being done at these development centres is fairly sophisticated.
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 5/19
IT ±sectors contribution to the GDP
The contribution of IT sector (consisting of hardware, software and services) to the GDP of
the country has been significantly increasing from US $ 6 billion in 1997-98 to US $ 64
billion in 2007-08. Within ten years time the share of IT sector recorded a 5 fold increase
from about 1.2 percent in 1997-98 to 5.5 per cent in 2007-08. It is to be remembered that the
major share of this contribution is by Software and related service exports. IT revenues in
2004-05 were about 20 per cent higher than construction sector and almost three times higher
than in mining and in electricity, gas and water supply. The gross revenue from IT services
exceeded 12 per cent of GDP generated in India¶s service sector that accounts for about 54
per cent of the GDP. These estimates, however, appears to involve some underestimate
because it does not include telecommunication (both equipment and services) mass
communication output like Television and some of the other electronic products that are
integral part of ICT sector. Viewed thus the real contribution of IT to the GDP would be
much higher.
Employment generated by IT sector
The phenomenal contribution of IT sector to the employment generation has been noteworthy
especially in the context of declining/slow employment growth in the organized sector in the
post reform phase (i.e. after 1991 when liberalization was adopted) in the Indian economy.
According to the latest Information Technology Annual Report 2008 of DIT, the total IT
Software and Services employment is expected to reach 2.0 million mark in 2007-08
(excluding employment in Hardware sector), as against 1.63 million in 2006-07, a growth of
22.7per cent YoY (year on year). This represents a net addition of 375,000 professionals to
the industry employee base. The indirect employment attributed by the sector is estimated to
about 8.0 million in the year 2007-08. This translates to the creation of about 10 million job
opportunities attributed to the growth of this sector. The industries direct employment has
grown at a compound annual growth rate (CAGR) of 26 per cent in the last decade, making it
the largest employer in the organized private sector of the country.
Performance of IT exports
Indian IT - BPO Industry Exports Touched USD 50 Billion Landmark.
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 6/19
Industry emerges stronger from the global economic meltdown to post encouraging results
y Domestic market expected to witness 12 percent growth in FY09-10; to reach INR
662 billion.
y Industry will continue to be a net hirer; direct employment expected to grow by 4
percent and cross 2.3 million with over 90,000 jobs added in FY09-10.
y FY 10-11 outlook; Software and Services exports revenues to grow by 13-15 percent
and domestic revenues to grow by 15-17 percent.
y According to the findings, export revenues for the Indian IT-BPO industry have
recorded a growth of 5.5%, to reach USD 49.7 billion in FY 09-10.
y The growth was led by domestic market buoyed by increased Government spending
in IT. In addition, new areas such as Engineering Services and Product Development
displayed phenomenal momentum clocking combined revenue of over USD 10
billion.
y With 450 delivery centres in 60 countries across the world, the industry has an
unparalleled global value chain. The industry has also enhanced its global workforce,
hiring specialized talent in developed markets and building a truly global delivery
model.´
K ey Highlights
y Government IT spend estimated at INR 150 billion in 2009; expected to reach INR
250 billion by 2011
y USD 9 billion business opportunity in e-Governance
y APAC is the fastest growing geography with an estimated growth of 10%
y Indian IT-BPO industry continues to dominate the global market place with 51
percent market share
y Growth in emerging verticals such as retail and healthcare 3x faster than core verticals
y Infrastructure services to be a key growth driver for the industry with an estimated
growth of 10.5%.
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 7/19
Sources: i
¡
¢ sscom ii
£ epar tment of Information Technology, Government of India
Source:Nasscom
From the above table we can see the expor ts for the year 2008-09 is $ 47.1(USD bn) and the
domestic market is $590(INR bn).There has been a growth in the next year i.e 2009-10 to $
49.7 (USD bn) in expor ts and $662 (INR bn) domestically. For the year 2010-11 the expor ts
are 56-57(USD bn) and domestically 761-775(INR bn).
Key Pl yers i Indi
The following are India¶s Tier 1 companies in the IT sector:
T Consul ncy Services Ltd
Tata Consultancy Services Limited (TCS) is an Indian IT services, business solutions and
outsourcing company headquar tered inMumbai, India. TCS is the largest provider
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 8/19
of information technology in Asia and second largest provider of business process
outsourcing services in India. TCS has offices in 47 countries with more than 142 branches
across the globe. The company is listed on the National Stock Exchange and Bombay Stock
Exchange of India.
TCS is one of the operative subsidiaries of one of India's largest and conglomerate company,
the Tata Group or Tata Sons Limited, which has interests in areas such as energy,
telecommunications, financial services, manufacturing, chemicals, engineering, materials,
government and healthcare.
Wipro Technologies Ltd
Wipro Limited is a global information technology (IT) services company headquartered
in Bangalore, India. According to the 2010 revenue, Wipro is one of the largest IT services
company in India and employs more than 119,491 people worldwide as of September 2010. It
is 9th most valuable brand in India according to an annual survey conducted by Brand
Finance and The Economic Times in 2010. Wipro provides outsourced research and
development, infrastructure outsourcing, business process outsourcing (BPO) and business
consulting services. The company operates in three segments: IT Services, IT Products,
Consumer Care and Lighting.
Wipro Technologies, the global technology and consulting services division of Indian
conglomerate Wipro Limited.
Infosys Technologies Ltd
Infosys defines designs and delivers technology-enabled business solutions for Global 2000
companies. Infosys also provides a complete range of services by leveraging our domain and
business expertise and strategic alliances with leading technology providers.
There offerings span business and technology consulting, services, systems, product
engineering, custom software development, maintenance, re-engineering, independent testing
and validation services, IT infrastructure services and business process outsourcing.
Infosys has a global footprint with 64 offices and 63 development centers in US, India,
China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands,
Poland, Canada and many other countries. Infosys and its subsidiaries have 130,820
employees as on March 31, 2011.
Mahindra Satyam
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 9/19
Mahindra Satyam is a Brand identity of Satyam Computer Services Limited. Satyam
Computer Services Limited was founded in 1987 by B Ramalinga Raju. Mahindra Satyam is
a part of the Mahindra Group which is one of the top 10 industrial firms based in India. The
company offers consulting and information technology (IT) services spanning various
sectors, and is listed on the New York Stock Exchange, the National Stock Exchange (India)
and Bombay Stock Exchange (India). In June 2009, the company unveiled its new brand
identity ³Mahindra Satyam´ subsequent to its takeover by the Mahindra Group¶s IT
arm, Tech Mahindra. Mahindra Satyam has offices in 5 countries.
Mahindra Satyam provides services in the following areas:
Aerospace and Defence
Banking, Financial Services & Insurance
Energy and Utilities
Life Sciences & Healthcare
Manufacturing, Chemicals & Automotive
Public Services & Education
Retail
Consumer Packaged Goods
Travel, Transport, Logistics
Telecom, Infrastructure, Media and Entertainment & Semiconductors
Global IT players in India
There are a large number of multi-national IT enterprises operating in India in sectors such
as: Integrated Chip Design, System Software, Communication Software, R&D Centres,
Technology Support Sector, Captive Support Sector, BPO Sector etc reaping the cost and
quality advantages.
These multinationals include Siemens, Philips, Intel, Texas Instruments etc. (Chip Design);
Siemens, Motorola, Lucent Technologies, Sony, Nortel etc. (Communication Software);
Microsoft, Oracle, Sun Microsystems, HP, Compaq etc. (Systems Software); Google, Yahoo
etc. (R&D Centres); Axa Business Services, Swiss Shared Services, Siemens Shared Services
etc. (BPO Sector); Accenture, DELL, HSBC, GE Capital, Fidelity etc. (Captive Support
Sector).
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 10/19
International quality certificates
Indian software industry continues to get international recognition for quality in software
development. No doubt, µIndia has moved rapidly on the quality front. Indian software
organizations adopted the ISO model soon after it came and then when the Capability
Maturity Model (CMM) started becoming more important, rapidly transitioned to the CMM.
This has given the Indian companies solid project and process management strength these
models are supposed to bring.
This is a tremendous strength that is not easy to emulate. For example, China, despite the fact
that it has about a 1000 software companies in Beijing area alone, has probably none at level
4 or 5 and is now actively looking at CMM as part of the country-level strategy to tap the
global market. The situation in the rest of Asia (not counting the developed countries) is
similar. The situation in Latin America is no different. In fact, outside of the developed
countries, it is only India that has companies that have been able to successfully implement
these global quality models.
Based on experience of Indian companies transitioning from ISO to CMM, most Indian
companies moved from ISO to Level 4 or above with a matter of a year or two. Overall, the
project and process management abilities of Indian companies are very advanced and
compare well with the best in the world. In fact, many Indian companies are now getting
requests from their customers seeking help in setting up quality systems in their
organizations.
The following statistics help us empirically prove our argument. µIn 2005-06 among the 401
firms that reported different international quality standards 82 had SEI CMM level 5, the
highest level of quality accreditation across the globe, which that accounted for more than
two-thirds of such firms in the world over. As many as 123 firms had SEI CMM level 2
certification or above and 330 had ISO 9001 (see below table). If the evidence presented in
table is any indication most of the Indian software enterprises have strived to attain
excellence in their professionalism and best practices.
Status of quality Certification obtained by Indian IT firms
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 11/19
Description No. Of firms
ISO 9001 330
ISO 9002 23
ISO 9001/9002 345
ISO 9001:2000 72
SEI CMM level 5 82
SEI CMM level 2,3,4 41
CMMi level 5 32
CMMi level 2,3,4 14
PCMM level 5 13
PCMM LEVEL 2,3,4 11
Six sigma 44
Others 41
Total 401
Note: take from Journal of Theoretical and Applied Information Technology
Source: Quoted from Joseph 2007 (Complied by him based on NASSCOM (2006)
Quality certification assures export customers that the supplier can deliver the contracted
service on time, in full as well as within budget. Many studies have found that companies
with quality certification have faster revenue growth than companies without them.
Role of NASSCOM in IT industry
National Association of Software and Services Company (NASSCOM) acts as an advisor,
consultant and coordinating body for the IT-BPO industry in India, and has played a key role
in enabling the government in India to develop industry friendly policies. NASSCOM was set
up in 1988 to facilitate business and trade in software and services and to encourage
advancement of research in software technology. It is a not-for-profit organization, registered
under the Indian Societies Act, 1860.
NASSCOM has been proactive in pushing this cause for ensuring that the Indian Information
Security environment benchmarks with the best across the globe. As a part of its Trusted
Sourcing initiative, NASSCOM is in the process of setting up the Data Security Council of
India (DSCI) as a Self Regulatory Organization (SRO) to establish, popularize, monitor and
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 12/19
enforce privacy and data protection standards for India¶s ITeS-BPO industry. DSCI shall
function as an enabler to the IT and ITeS industry to grow at a rapid pace by facilitating the
adoption and enforcement of the prescribed security standards and best practices.
Software technology parks of India(STPI)
Software Technology Parks of India was established and registered as an autonomous society
under the Societies Registration Act 1860, under the then Department of Electronics (the
present Department of Information Technology), Ministry of Communications and
Information Technology, Government of India on 5th June 1991 with an objective to
implement STP/EHTP Scheme, set-up and manage infrastructure facilities and provide other
services like technology assessment and professional training.
Objectives of the Society
The objectives of the Software Technology Parks of India are:
(a) To promote development and exports of software and software services.
(b) To provide statutory services to the exporters by implementing STP/EHTP Scheme.
(c) To provide data communication services including various value added services to IT
industries and corporate houses.
(d) To provide Project Management and Consultancy services both at national and
international level.
(e) To promote small and medium entrepreneurs by creating a conducive environment in
the field of Information
STP Units
During the year 2008-09, 572 new units were registered under STP Scheme. As on 31st
March 2009, 8455 units were operative out of which 7214 units were actually exporting. The
remaining units are at various stages of gestation as the scheme allows three years for
companies to start commercial production. The growth in the number of operating and
exporting units during the last 8 years is as under :
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 13/19
Growth of IT-ITes sector
The Indian IT-ITeS sector (including hardware) grew by 33 per cent in FY 2008 to reach US$
64 billion in aggregate revenue. Of this, the ITeS/BPO sector contributed US$ 12.5 billion as
against US$ 9.5 billion in FY 2007, an increase of 31 per cent.
The Indian ITeS-BPO exports grew significantly from US$ 8.4 billion in FY 2007 to US$
10.9 billion in FY 2008 while the revenues of domestic BPO grew to US$ 1.6 billion in FY2008 from US$ 1.1 billion in FY 2007. The sector provided direct employment to 700,000 in
FY 2008 up from 553,000 in FY 2007.
Source: From the report by the Indian law office
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 14/19
Opportunities of future growth in IT sector
Despite the commendable performance of the industry so far, it is estimated that there is still
significant room for growth. As pointed out earlier, though India now accounts for only less
than 2 per cent of the world software and related service market, with far sighted policies it
could become a major force capturing 5-8 per cent of the software and related service market.
Broader base of the market, high quality standards and domain expertise attained by Indian
players in niche areas etc are favourable factor for further growth of India software export. It
is also expected that the rate of flow of work to India through offshoring would increase
considerably, in the context of mounting pressure on developed countries and global majors
to resort to further cost cutting. It is in this context that lot of projections for the further
growth of the software industry is made by industry association and committees and task
forces appointed by the Government of India.
The IT task force 1998 appointed by Government of India had put the following targets for
the Computer industry. The target for software export is $50 million out of a production of $
87 billion. Given the present growth rate of this sector the industry can very well achieve this
target. Out of the US $50 billion $ 23 billion is expected from IT services whereas Software
products contribute $ 8 billion. And $15 billion and $ 4 billion are expected from IT enabled
services and E-business respectively.
Challenges pertaining to the IT sector
Despite these bright and encouraging facets of the software industry there are certain areas of
concern, which need to be given the desired attention and weight age. Some of these areas of
concern or challenges are:
1).The most formidable challenge facing Indian software industry is sustainability of high
growth rate of software exports in future. Foregoing analysis suggests that while software
export registered an annual average growth of above 50 per cent during the period 1990-00, it
has come down (or stabilized around) 28 to 30 per cent since 2001. The main reason has been
slowdown in US economy since 2000 as 60 per cent of our software exports are sourced to
US. Hence, any slowdown in US will have adverse impact on Indian software export.
Further, a number of countries such as China, Russia, Philippines, Canada, and Ireland etc.
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 15/19
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 16/19
Future outlook
The underlying theme of 2010 has been the steady recovery from recession. Worldwide GDP,
which had declined by 0.6 per cent in 2009, grew 5 per cent in 2010 and is expected to
stabilise at about 4.4 per cent in 2011. Developing nations continue to grow faster than the
developed countries by at least three times. IT spend is directly linked to growth in GDP and
in line with this trend, IT spend in 2011 is expected to grow nearly 4 per cent. Worldwide IT
spending will also benefit from the accelerated recovery in emerging markets, which will
generate more than half of all new IT spending worldwide in 2011. In 2011, growth will
reflect new demand for IT goods and services, not pent-up demand from prior years. 8
NANSASCSOSMCO SMT RSTARTEAGTIECG RICE RVIEEVWIE W20 120011
IT services is expected to grow by about 3.5 per cent in 2011 and 4.5 per cent in 2012. While
focus on cost control and efficiency/productivity remain, customers are also evaluating how
investments in IT impact can further business goals ± ROI led transformation - leading to an
increase in project-based spending. Services such as virtualisation, consolidation, and
managed services that focus on ROI in the short term will drive opportunities in the market.
Emerging Asian enterprises across multiple industries will continue to accelerate services
spending in their efforts to challenge existing global MNCs. Organisations will look for
alternative IT models - Cloud, on-demand services and SaaS ± in order to reduce hardware
infrastructure costs and provide scalability on demand.
Worldwide packaged software revenue is estimated to reach USD 297 billion in 2011, a Y-o-
Y growth of over 5 per cent, led by emerging regions, such as APAC and LATAM. These
regions are expected to invest heavily in enterprise software initiatives as they continue to
round out the IT infrastructure necessary to do business. Business Process Outsourcing
spending is expected to be driven by analytical services, F&A and industry-specific BPO
solutions.
In the future, the global IT-BPO industry is likely to go through a paradigm shift across five
parameters-
Markets ± Growth will be driven by new markets ± SMBs, Asia, public sector and
government-influenced entities which will become a priority customer base.
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 17/19
Customers ± Customers will demand µtransformative¶ value propositions, that go beyond
lower-cost replication; as technology creates virtual supply chains, customers will require a
seamless experience across time zones and geographies; increasing demand for innovation
and end-to-end transformation.
Service Offerings ± Offerings that are high-end, deeply embedded in customer value chains
will emerge. Services and delivery will become location-agnostic leading to new
opportunities such as design services in manufacturing, Remote Infrastructure Management
(RIM), etc. Solutions for the domestic market will be a key focus area.
Talent ± Government pressures to create local jobs and the need for local knowledge will
alter the employee mix - a higher proportion of non-Indians with multilingual and localised
capabilities. There will be a much greater focus on ongoing development of specialised skills
and capabilities.
Business models ± Driven by a focus on expertise and intellectual property, offerings will
shift from piecemeal, technology-centric applications to a range of integrated solutions and
higher-end services, spanning new service lines (e.g., green IT).
While developed markets constitute the largest share of IT spend, increasingly emerging
markets are spearheading growth as a large consumer base becomes increasingly tech-savvy
and enterprises adopt IT solutions to improve their global competitiveness. Given this
scenario, the Indian supply base has begun to explore market opportunities beyond US and
UK. By 2020, new segments (SMBs), new verticals (Public sector and Defence, Healthcare,
Utilities, Printing and Publishing) and new geographies (BRIC) will account for 50-55 per
cent growth in the addressable market. India supply base is well placed to tap this potential,
with their two decade long experience, mature service capabilities, presence in almost all
verticals, global footprint and an abundant talent pool.
Suitably exploiting these emerging opportunities both in the global and domestic markets can
help India reach USD 130 billion in IT-BPO revenues by FY2015, a CAGR of 14 per cent.
By FY2015, the Indian IT-BPO industry is expected to contribute about 7 per cent to annual
GDP and create about 14.3 million employment opportunities (direct and indirect).
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 18/19
The government will be a key driver for increased adoption of IT-based products and
solutions. It has embarked on various IT-enabled initiatives including in Public services
(Government to citizen services, citizen identification, public distribution systems),
Healthcare (telemedicine, remote consultation, mobile clinics), Education (eLearning, virtual
classrooms, etc) and Financial service (mobile banking/payment gateways), etc. These
initiatives are expected to substantially improve the economic conditions of a large, under-
served population, thereby reducing the government¶s fiscal burden.
8/7/2019 Summer Project- Harshita (1)
http://slidepdf.com/reader/full/summer-project-harshita-1 19/19
References
1)Asheref Illiyan, 2008, ³Performance Challenges and Opportunities of Indian Software
Export´, Working Paper, Jamia Millia Islam University,
http://www.jatit.org/volumes/research-papers/Vol4No11/11Vol4No11.pdf
2)Software Technology Parks of India, 2009, ³Annual Report´,
http://www.stpi.in/writereaddata/links/50428173332534218955annuarl1.pdf
3)NASSCOM, 2011, ³The IT-BPO Sector in India´,
http://www.nasscom.in/upload/Publications/Research/140211/Executive_Summary.pdf
4)Indian Law Offices, 2008, ³Indian Information Technology Sector´,
http://www.indialawoffices.com/pdf/informationtechnology.pdf
5)Wikipedia, 2010, ³Information Technology in India´,
http://en.wikipedia.org/wiki/Information_technology_in_India
6)Infosys, ³What we Do´, http://www.infosys.com/about/what-we-do/pages/index.aspx