An insight into the IT sector of India
Information Technology sector of India plays a key role in the economic growth of the country and it continues to be one of the sunshine sectors of Indian economy with its rapid growth. This article deals with an insight into the IT sector of India and the future of the sector in the country.
Introduction:
India was placed in the global IT market due to the key role played by the Indian IT sector. It is one of the most important sectors of the present day that carries out businesses and services as well in the world market. The advancement in network and communications made it possible for the IT sector to stay in touch with other business sites and thus helped in promoting the IT sector in India. The sector played a significant role in contributing much to the growth of Indian economy and thereby influencing the lives of the people in various parameters. It brought about a change in the standards of living of the people by generating much employment opportunities. The sector played a key role in changing India's image in the global market with its innovative entrepreneurs providing their world class technology solutions and business services across the globe. Success story of Indian IT sector
IT sector of India is considered to be one of the top five priority sectors of the country. India has become and presently is the most preferred destination for many global companies that are looking to offshore their IT businesses and solutions. This is mainly due to the low-cost business environment, huge English-speaking human resource that is dynamic, energetic, efficient and enthusiastic as well. All these factors contributed much to the growth of IT sector in India. Indian government also helped in the growth of the sector with its IT-adoption policies. India is leading in Software Technology and majority of its clients belong to USA which accounts to nearly 60%. And hence any volatility in the U.S economy will have its impact on the Indian IT industry. The growth in Indian IT sector motivated the government to take necessary steps that further helped in the growth of the sector. The most important among these are the National e-Governance Programmes and the Unique Identification Development Authority of India programme which created large scale infrastructure for IT. A separate ministry for IT was set up the govt. to look into the immediate approval and implementation of IT projects as well as for streamlining the regulatory projects. The following steps taken by the Indian government triggered the growth of the sector:
Thus due to the continuous efforts of Indian govt, there was a speedy growth in the IT sector and the govt policies like enactment of cyber laws to protect and safeguard the interest of software companies and also with the development of knowledge based industries in India, the sector made its dominance in the world map.
The annual growth rate was more than 50% between 1992 and 2001. This is mainly due to technically sound resource base which further helped in expanding the sector. The sector has been growing with an above average growth rate with various institutions and computer training centers that had been producing large number of trained, talented and skilled professionals which helped by and large in the growth of IT sector in India. The sector is fast growing with its software development activity hot spots like Hyderabad – the Hi-tech city, Bangalore, Mumbai, Pune, Chennai, Kolkatta, Delhi-Noida-Gurgaon belt, Vadodara, Bhubaneswar, Ahmedabad, Goa, Chandigarh and Tiruvanthapuram that are fast developing due to their state-of-the-art software facilities and the presence of large number of overseas vendors.
India has been and is the most preferred destination for many companies that are looking to offshore their IT and back-office functions. It is also retaining its low-cost advantage and thus has become a financially attractive location with its facilitated business environment and availability of skilled people.India's contribution to world's IT sector
India is having the highest reputation in the world's IT sector and the present day big brands are not only successful in a particular region but they have penetrated to almost all corners of the world. The big banners like HSBC, Dell, Microsoft, GE, HP (Hewlett Packard) and other Indian multi-national firms like Infosys, Wipro and TCS have contributed a lot to the world IT sector and triggered the growth of IT sector in India which helped in the growth of the economy of the country. With the telecommunications, well-developed infrastructure and large English-speaking and computer-literate graduate manpower, India has been and is the strongest IT-hub that stands higher than any other country in the world. The Indian IT sector could achieve this due to the providing of its continued quality service and thus it contributed much to the world IT sector. India is a strong base of skilled software manpower and is a beacon for software customers. Most of the Indian working professionals are migrating overseas or joining end-user organisations and helped in contributing to the world IT sector by their services. Educational universities and institutions primarily the prestigious Indian Institute of Technology (IITs) are the prime source of newly-qualified and skilled personnel and hence indirectly these institutions contributed to the IT sector of the world. There is an ever-increasing demand for Indian skilled and trained manpower not only in the U.S but also among many other countries across the world. There are major opportunities for Indian talent in the European Union and most of the European companies are looking to leverage India's skills in the IT sector. Indian companies are increasingly expanding their presence in Europe where India's software export destination accounted for 24%. With the continuous growth of world IT sector, India continued its struggle and came up as the world leader in Information Technology sector. The Indian IT sector is exporting software and services to approx. 95 countries around the world and the share of North America (U.S.A and Canada) in India's software exports is about 61 %. The Indian manpower is not only technically skilled but also is cheaper in the world class level. The fluency in English language by Indian manpower, cheaper cost, skilled workers and even the geographic location of India, all made India a preferred destination for many big banners across the world. India is successful in driving all the big banners to its land and establishing itself as the world's biggest software outsourcing destination. India is a perfect solution for the companies that are seeking for cheap, yet technically skilled labour with their innovative minds and state of art to work over a project. The facilities that are provided in a perfect working conditions contribute much for India in becoming the most adored destination to many companies.Recession and its effect on Indian IT sector
Recession and the consequent slow down of U.S economy is in fact a bad news to India as many of the Indian companies have their major outsourcing deals from the U.S. India's export to the U.S had grown substantially over the years and Indian IT companies with big ticket deals in the U.S had to see their profit margins shrinking. This has greatly affected the unemployment in the IT sector and even the youth started opting for other fields in fear for future impact on the sector. However, Indian IT sector could slowly resist and stabilize itself in the world market even after the recession effect. Future of Indian IT sector
Indian IT industry with its software and services will continue to remain in the driver's seat. India is successful in the IT sector due to the knowledge and expertise in cutting edge technologies of the software industry and skilled manpower base. Due to these strengths the sector is likely to march ahead towards the future growth of Indian economy. The emerging technologies of India help the sector in obtaining new customers, even after the slowdown of the U.S economy.
After the IT Act by the Indian govt, the state governments too are getting into action with their e-government infrastructure and services sector in India which is looked up as a billion dollar market for IT vendors, software and training companies. The success of Indian IT and the heights to which the sector has risen is not only due to the resources and low-cost factors but also due to the encouragement and promotion techniques that are adopted by the government. The main reason being the IT Act 2000 which secures the IT business in India and this made many domestic and offshore customers to rely on the Indian Industry and at the same time it made many entrepreneurs to join or move ahead in the field. Presently Indian IT sector is playing a lead role in its software and services with its rich English-speaking human resource. India's strength in the software market lies in its pursuit of new opportunities. The first quarter of 2011-12 offered positive business outlook for IT sector. Analysts expect India's top IT firms like TCS, Infosys, Wipro and HCL to grow 25 per cent by 2012. The Indian Information Technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise. According to a report the exports component of the Indian industry is expected to reach US$ 175 billion in revenue by 2020. India continued providing its quality services to software companies and according to the NASSCOM survey India continued to win the recognition of its quality in software development. Strong economic growth, rapid advancement in technology infrastructure, increasingly competitive Indian organisations, enhanced focus by the government and emergence of business models that help provide IT to new customer segments are the key drivers for increased technology adoption in India.Conclusion
The Indian IT sector will continue its supremacy not only in the domestic front but in the world market as well. It will further help in changing the face of India and thereby bring about a change in the lifestyles of the people. It will contribute much to the economic growth of the country in near future and undoubtedly will continue to lead in the IT sector of the world.
Follow