Information technology in India: Difference between revisions
m add |
No edit summary |
||
| Line 103: | Line 103: | ||
| 2 |
| 2 |
||
| [[Chennai, India|Chennai]] |
| [[Chennai, India|Chennai]] |
||
| It is the Second largest exporter of Software next to [[Bangalore]]. It has the largest operations for India's top software company [[TCS]], [[Infosys]] ( has world's largest development center with 25,000 employers in |
| It is the Second largest exporter of Software next to [[Bangalore]]. It has the largest operations for India's top software company [[TCS]], [[Infosys]] ( has world's largest development center with 25,000 employers in Mysore world city at Baranur near Chengalpattu, and many centers in IT corridor), and other software companies like Wipro, CTS, Patni, L&T infotech and many companies have major operations in [[IT corridor]], [[Ambattur]] and other places in [[Chennai]] |
||
|- |
|- |
||
Revision as of 11:19, 13 April 2012
 | This article possibly contains original research. (January 2012) |
The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The IT–ITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the IT–ITES sector, contributing substantially to increase in GDP, employment, and exports. The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.1% in FY2011.[1] According to NASSCOM, the IT–BPO sector in India aggregated revenues of US$88.1 billion in FY2011, where export and domestic revenue stood at US$59 billion and US$29 billion respectively.[1] The top seven cities that account for about 90% of this sectors exports are Bangalore, Chennai, Hyderabad, Mumbai, Pune, Delhi, Kolkata, Coimbatore and Kochi.[2] Export dominate the IT–ITES industry, and constitute about 77% of the total industry revenue. Though the IT–ITES sector is export driven, the domestic market is also significant with a robust revenue growth.[1] The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012.
This sector has also led to employment generation. Direct employment in the IT services and BPO/ITES segment was 2.3 million in 2009-10 and is estimated to reach nearly 2.5 million by the end of financial year 2010-11.[1] Indirect employment of over 8.3 million job opportunities is also expected to be generated due to the growth of this sector in 2010-11. Generally dominant player in the global outsourcing sector. However, the sector continues to face challenges of competitiveness in the globalized world, particularly from countries like China and Philippines.
India's growing stature in the Information Age enabled it to form close ties with both the United States of America and the European Union. However, the recent global financial crises has deeply impacted the Indian IT companies as well as global companies. As a result hiring has dropped sharply, and employees are looking at different sectors like the financial service, telecommunications, and manufacturing industries, which have been growing phenomenally over the last few years.[3] India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs.[4] The first software export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 80s.[5]
History
The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories. In 1968 Tata Consultancy Services—established in SEEPZ, Mumbai[4] by the Tata Group—were the country's largest software producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru (office: 15 August 1947 – 27 May 1964) the economically beleaguered country was able to build a large scientific workforce, third in numbers only to that of the United States of America and the Soviet Union. On 18 August 1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N. R. Sarkar.
Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research. By 1960 as many as 10,000 Indians were estimated to have settled in the US. By the 1980s a number of engineers from India were seeking employment in other countries. In response, the Indian companies realigned wages to retain their experienced staff. In the Encyclopedia of India, Kamdar (2006) reports on the role of Indian immigrants (1980 - early 1990s) in promoting technology-driven growth:
The National Informatics Centre was established in March 1975. The inception of The Computer Maintenance Company (CMC) followed in October 1976. During 1977-1980 the country's Information Technology companies Tata Infotech, Patni Computer Systems and Wipro had become visible. The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and her successor Rajiv Gandhi that electronics and telecommunications were vital to India's growth and development. MTNL underwent technological improvements. During 1986-1987, the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the IBM mainframes in India), NICNET (the network for India's National Informatics Centre), and the academic research oriented Education and Research Network (ERNET).
Post liberalization
Regulated VSAT links became visible in 1985. Desai (2006) describes the steps taken to relax regulations on linking in 1991:
Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991, the 64 kbit/s leased line service in 1992, and commercial Internet access on a visible scale in 1992. Election results were displayed via National Informatics Centre's NICNET.
The Indian economy underwent economic reforms in 1991, leading to a new era of globalization and international economic integration. Economic growth of over 6% annually was seen during 1993-2002. The economic reforms were driven in part by significant the internet usage in the country. The new administration under Atal Bihari Vajpayee—which placed the development of Information Technology among its top five priorities— formed the Indian National Task Force on Information Technology and Software Development.
Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information Technology and Software Development:
The New Telecommunications Policy, 1999 (NTP 1999) helped further liberalize India's telecommunications sector. The Information Technology Act 2000 created legal procedures for electronic transactions and e-commerce.
Throughout the 1990s, another wave of Indian professionals entered the United States. The number of Indian Americans reached 1.7 million by 2000. This immigration consisted largely of highly educated technologically proficient workers. Within the United States, Indians fared well in science, engineering, and management. Graduates from the Indian Institutes of Technology (IIT) became known for their technical skills. The success of Information Technology in India not only had economic repercussions but also had far-reaching political consequences. India's reputation both as a source and a destination for skilled workforce helped it improve its relations with a number of world economies. The relationship between economy and technology—valued in the western world—facilitated the growth of an entrepreneurial class of immigrant Indians, which further helped aid in promoting technology-driven growth.
Recent development
The economic effect of the technologically inclined services sector in India—accounting for 40% of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce—is summarized by Sharma (2006):
Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. India's second and third largest software companies are head-quartered in Bangalore, as are many of the global SEI-CMM Level 5 Companies.
Mumbai too has its share of IT companies that are India's first and largest, like TCS and well established like Reliance[disambiguation needed], Patni, LnT Infotech, i-Flex, WNS, Shine, Naukri, Jobspert etc. are head-quartered in Mumbai. And these IT and dot com companies are ruling the roost of Mumbai's relatively high octane industry of Information Technology.
Such is the growth in investment and outsourcing, it was revealed that Cap Gemini will soon have more staff in India than it does in its home market of France with 21,000 personnel+ in India.[6]
On 25 June 2002 India and the European Union agreed to bilateral cooperation in the field of science and technology. A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. India holds observer status at CERN while a joint India-EU Software Education and Development Center is due at Bangalore.
| Particulars | FY 2004 | FY 2005 | FY 2006 | FY 2007 | FY 2008 |
|---|---|---|---|---|---|
| IT Services | 10.4 | 13.5 | 17.8 | 23.5 | 31.0 |
| - Exports | 7.3 | 10.0 | 13.13 | 18.0 | 23.1 |
| - Domestic | 3.1 | 3.5 | 4.5 | 5.5 | 7.9 |
| ITES-BPO | 3.4 | 5.2 | 7.2 | 9.5 | 12.5 |
| - Exports | 3.1 | 4.6 | 6.3 | 8.4 | 10.9 |
| - Domestic | 0.3 | 0.6 | 0.9 | 1.1 | 1.6 |
| Engineering services, R&D and Software products | 2.9 | 3.9 | 5.3 | 6.5 | 8.6 |
| - Exports | 2.5 | 3.1 | 4.0 | 4.9 | 6.4 |
| - Domestic | 0.4 | 0.7 | 1.3 | 1.6 | 2.4 |
| Hardware | 5.0 | 5.9 | 7.0 | 8.5 | 12.0 |
| - Exports | 0.5 | 0.5 | 0.6 | 0.5 | 0.5 |
| - Domestic | 4.4 | 5.1 | 6.5 | 8.0 | 11.5 |
| Total IT industry (including hardware) | 21.6 | 28.4 | 37.4 | 48.0 | 64. |
Major IT Hubs
| Ranking | City | Description |
|---|---|---|
| 1 | Bangalore | Popularly known as the capital of the Silicon Valley of India is currently leading in Information Technology Industries in India. |
| 2 | Chennai | It is the Second largest exporter of Software next to Bangalore. It has the largest operations for India's top software company TCS, Infosys ( has world's largest development center with 25,000 employers in Mysore world city at Baranur near Chengalpattu, and many centers in IT corridor), and other software companies like Wipro, CTS, Patni, L&T infotech and many companies have major operations in IT corridor, Ambattur and other places in Chennai |
| 3 | Hyderabad | Hyderabad called as Cyberabad, which has good infrastructure and good government support is also a good technology base in India. The Government of AP Has built a separate township for IT Industry called the HITEC City. [8] |
| 4 | Pune | Pune, a major industrial point in India. It is also referred to as Education Hub of India. It was declared as Gamma-Global City recently. As one of the largest cities in India, and as a result of its many colleges and universities, Pune is emerging as a prominent location for IT and manufacturing companies to expand. |
| 5 | Coimbatore | It is the Manchester of South India, second largest city in the state of Tamil Nadu,India and one of the largest industrial city in India.Among major metro-markets Coimbatore (up 38%) MAY 11 (Bangalore showed the slowest rate of annual growth at 4 percent driven by reduced demand in the BPO/ITES sector),It Become an Upcoming Major IT hub of India |
| 6 | NCR | The National Capital Region of India comprising Delhi, Gurgaon, Faridabad, Noida, Greater Noida and Ghaziabad are having ambitious projects and are trying to do every possible thing for this purpose. |
| 7 | Mumbai | Popularly known as the commercial, entertainment, financial capital of India, This is one city that has seen tremendous growth in IT and BPO industry, it recorded 63% growth in 2008.[9] TCS, Patni, LnT Infotech, I-Flex WNS and other companies are headquartered here. |
| 8 | Kolkata | Kolkata is a major IT hub in eastern India. All major IT companies are present here. The city has tremendous potential for growth in this sector with upcoming areas like Rajarhat. |
| 9 | Trivandrum | Trivandrum is the capital of Kerala. GOK provides a good platform for IT development in the city with India's largest IT park Technopark and dedicated Technocity SEZs. |
| 10 | Kochi | Kochi is the commercial capital of Kerala and is well connected by train,bus,sea and air. Infopark and smartcity are the two SEZ IT parks with more than 100 companies. |
See also
References
- ^ a b c d Indian IT-BPO Industry
- ^ http://www.tribiz.in/DownloadableFiles/neoIT_India_Cities_Comparison.pdf
- ^ "Economic Times (2010), ''Are IT jobs losing sparkle?''". Economictimes.indiatimes.com. 27 August 2010. Retrieved 30 August 2010.
- ^ a b "Special Economic Zones: Profits At Any Cost". Doccentre.net. Retrieved 22 July 2010.
- ^ "Top 50 Emerging Global Outsourcing Cities" (PDF). www.itida.gov.eg. Retrieved 22 July 2010.
- ^ "/ Technology - Capgemini in India milestone". Ft.com. 1 November 2009. Retrieved 22 July 2010.
- ^ http://www.nasscom.in/upload/5216/IT%20Industry%20Factsheet-Aug%202008.pdf
- ^ http://www.thehindubusinessline.com/2007/10/19/stories/2007101951332300.htm
- ^ "Global Services - Mumbai, India". Globalservicesmedia.com. 15 October 2009. Retrieved 22 July 2010.
Further reading
- Alexander, Steve, E-Commerce. (2006: from Computers and Information Systems), Encyclopædia Britannica 2008.
- Chand, Vikram K. (2006), Reinventing public service delivery in India: Selected Case Studies, Sage Publications, ISBN 0-7619-3489-8.
- Desai, Ashok V. (2006), "Information and other Technology Development", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 269–273, Thomson Gale, ISBN 0-684-31351-0.
- Kamdar, Mira (2006), "Indo -U.S. Relations, Cultural Exchanges in", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 236–239, Thomson Gale, ISBN 0-684-31351-0.
- Kapur, Devesh (2006), "Diaspora" in Encyclopedia of India (vol. 1) edited by Stanley Wolpert, pp. 328–331, Thomson Gale, ISBN 0-684-31350-2.
- Ketkar, Prafulla (2006), "European Union, Relations with (Science and technology)", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 48–51, Thomson Gale, ISBN 0-684-31351-0.
- Nanda, B. R. (2006), "Nehru, Jawaharlal", Encyclopedia of India (vol. 3) edited by Stanley Wolpert, pp. 222–227, Thomson Gale, ISBN 0-684-31352-9.
- Rothermund, Dietmar (2006), "Andhra Pradesh", Encyclopedia of India (vol. 1) edited by Stanley Wolpert, pp. 43–44, Thomson Gale, ISBN 0-684-31350-2.
- Sharma, Jagdish (2006), "Diaspora: History of and Global Distribution", Encyclopedia of India (vol. 1) edited by Stanley Wolpert, pp. 331–336, Thomson Gale, ISBN 0-684-31350-2.
- Sharma, Shalendra D. (2006), "Globalization", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 146–149, Thomson Gale, ISBN 0-684-31351-0
- Vrat, Prem (2006), "Indian Institutes of Technology", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 229–231, Thomson Gale, ISBN 0-684-31351-0.
- Wolcott, P. & Goodman, S. E. (2003), Global Diffusion of the Internet – I India: Is the Elephant Learning to Dance?, Communications of the Association for Information Systems, 11: 560-646.
External links
- Home Page - NASSCOM
- C-Change: India CIO Forum, Annual Conference for Top 100 CIOs of India.
- India's Top IT Companies 2007, D&B Industry Research Service.
- Kanellos, Michael (2005), India's renaissance , CNET News.com.
- India’s Information Technology Industry, Indian Embassy to the United States of America, Government of India.
- Computer caste Photo documentary on social aspects of IT revolution in India. By photographer Wim Klerkx, 2001/2002.
