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This article is about IT in India. For an overview of modern science and technology in India, see Science

and technology in the Republic of India. Also see Communications in India for further information.

The Indian Information Technology industry accounts for a 5.19% of the country's GDP and export

earnings as of 2009, while providing employment to a significant number of its tertiary sector workforce.

More than 2.5 million people are employed in the sector either directly or indirectly, making it one of

the biggest job creators in India and a mainstay of the national economy. In 2010-11, annual revenues

from IT-BPO sector is estimated to have grown over US$76 billion compared to China with $35.76 billion

and Philippines with $8.85 billion.[1] India's outsourcing industry is expected to increase to US$225

billion by 2020. The most prominent IT hub is Bangalore. The other emerging destinations are Chennai,

Hyderabad, Coimbatore, Kolkata, Kochi, Pune, Mumbai, Ahmedabad , NCR . Technically proficient

immigrants from India sought jobs in the western world from the 1950s onwards as India's education

system produced more engineers than its industry could absorb. 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.[2]

India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in

partnership with Burroughs.[3] 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.[4]

Each year India produces roughly 500,000 engineers in the country,[5][6] out of them only 25% to

30%[7] possessed both technical competency and English language skills, although 12% of India's

population can speak in English.[8] . India developed a number of outsourcing companies specializing in

customer support via Internet or telephone connections. By 2009, India also has a total of 37,160,000

telephone lines in use,[9] a total of 506,040,000 mobile phone connections,[10] a total of 81,000,000

Internet users—comprising 7.0% of the country's population,[11] and 7,570,000 people in the country

have access to broadband Internet— making it the 12th largest country in the world in terms of

broadband Internet users.[12] Total fixed-line and wireless subscribers reached 543.20 million as of

November, 2009.[13]

Contents [hide]

1 Formative years (till 1991)



2 1991 –2001

3 2001 –present

4 Health issues among Young labor force

5 Top 10 IT Hubs in India

6 See also

7 References

8 Further reading

9 External links

[edit] Formative years (till 1991)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[3] 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 entrepreneursunder 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 United States’ technological lead was driven in no small part by the brain power of brilliant

immigrants, many of whom came from India. The inestimable contributions of thousands of highly

trained Indian migrants in every area of American scientific and technological achievement culminated

with the information technology revolution most associated with California’s Silicon Valley in the 1980s

and 1990s.[14]



The National Informatics Centre was established in March 1975. The inception of The Computer

Maintenance Company (CMC) followed in October 1976. Between 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. Between 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).

[edit] 1991 –2001Regulated VSAT links became visible in 1985. Desai (2006) describes the steps taken torelax regulations on linking in 1991:

In 1991 the Department of Electronics broke this impasse, creating a corporation called Software

Technology Parks of India (STPI) that, being owned by the government, could provide VSAT

communications without breaching its monopoly. STPI set up software technology parks in different

cities, each of which provided satellite links to be used by firms; the local link was a wireless radio link. In

1993 the government began to allow individual companies their own dedicated links, which allowed

work done in India to be transmitted abroad directly. Indian firms soon convinced their American

customers that a satellite link was as reliable as a team of programmers working in the clients’ office.

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 between 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:

Within 90 days of its establishment, the Task Force produced an extensive background report on the

state of technology in India and an IT Action Plan with 108 recommendations. The Task Force could act

quickly because it built upon the experience and frustrations of state governments, central government

agencies, universities, and the software industry. Much of what it proposed was also consistent with the

thinking and recommendations of international bodies like the World Trade Organization (WTO),

International Telecommunications Union (ITU), and World Bank. In addition, the Task Force

incorporated the experiences of Singapore and other nations, which implemented similar programs. It

was less a task of invention than of sparking action on a consensus that had already evolved within the

networking community and government.

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. Thus GOI planned to established new Institutes specially for Information Technology to

enhance this field. In 1998 India got the first IT institute name Indian Institute of Information Technology

at Gwalior. 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.

[edit] 2001 –present

Infosys Media Centre in Electronic City, Bangalore.

Cyber Towers at Hitech City in Hyderabad



Microsoft India Development Center, Hyderabad

Millenium Tower in Kolkata, Salt Lake Sector-5, a major IT hub in the city.

Tidel Park—one of the largest software parks in Asia—was set up on the July 4, 2000 in Chennai, to aid

the growth of Information Technology in Tamil Nadu.

Patni Knowledge Park, Airoli, Navi Mumbai

Cognizant's Delivery Center in PuneIndia is now one of the biggest IT capitals in the modern world.

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):

The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent in

2001. IT-enabled services such as backoffice operations, remote maintenance, accounting, public call

centers, medical transcription, insurance claims, and other bulk processing are rapidly expanding. Indian

companies such as HCL, TCS, Wipro, and Infosys may yet become household names around the world.

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.[15]

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.

India's IT industry (USD bn)[16] 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.

[edit] Health issues among Young labor forceEmployees in IT / ITES services undergo high stress in their

work environment which raises serious concerns about work in this industry.[17] The corporate HR

practices are another concern where one survey found TCS employees average age is 29 years and the

recruitment practices which contribute to the inexperienced work force in the industry.[18] Corporate

critics shortage of human resources but the analyst says 20 year old industry cannot have 6 year

experienced labor force.[19] There have been raising concerns on violating employment laws by

corporates and there are harassment reported from companies like Wipro.[20]

[edit] Top 10 IT Hubs in IndiaRanking 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 Indias top software company TCS, Infosys ( has worlds largest development center with 25,000

employers in Mahindra world city at Maraimalainagar, 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. [21]

4 Pune Pune, a major industrial point in India.

5 NCR The National Capital Region of India comprising Delhi, Noida, Greater Noida , Ghaziabad,

Gurgaon,Faridabad and Lucknow are having ambitious projects and are trying to do every possible thing

for this purpose.

6 Mumbai Popularly known as the commercial, entertainment, financial capital of India, This is one citythat has seen tremendous growth in IT and BPO industry, it recorded 63% growth in 2008.[22] TCS,

Patni, LnT Infotech, I-Flex WNS and other companies are headquartered here.

7 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.

8 Trivandrum Trivandrum, the capital of kerala is a green metropolis and tier I city. GOK provides a good

platform for IT devolopment in the city with India's largest IT park Technopark and dedicated Technocity

SEZs.

9 Bhubaneswar Bhubaneshwar largest city of Orissa exports more than 1500 crores.

10 Jaipur This rapidly growing industrial hub houses a lot of IT/ITES and BPO giants. Genpact,

Connexions IT services, Deutsche Bank and EXL BPO, Infosyss, Tech Mahindra, and Wipro are here.

There are plans to build the largest IT SEZ in India by Mahindra under the Mahindra World City.

[edit] See alsoEKA (supercomputer)

PARAM

List of Software Companies in India

List of Tech Parks in Chennai



[edit] References1.^ China steadily closing gap with India as top BPO destination, XMG Global, June

2010.

2.^ "Economic Times (2010), ''Are IT jobs losing sparkle?''". Economictimes.indiatimes.com.

http://economictimes.indiatimes.com/news/news-by-industry/jobs/Are-IT-jobs-losing-

sparkle/articleshow/6443498.cms. Retrieved 2010-08-30.

3.^ a b "Special Economic Zones: Profits At Any Cost". Doccentre.net.

http://www.doccentre.net/Tod/SEZs-Profits-At-Any-Cost.php. Retrieved 2010-07-22.

4.^ "Top 50 Emerging Global Outsourcing Cities". www.itida.gov.eg.

http://www.itida.gov.eg/Documents/Tholons_study.pdf. Retrieved 2010-07-22.

5.^ "India :: World's Second Largest English Speaking Country". The Mythical Million.

http://www.newsweek.com/id/32285. Retrieved 2009-08-31.

6.^ "Engineers produced in India, China: It's the QUALITY, stupid!". The Mythical Million.

http://www.edn.com/blog/970000297/post/300013030.html. Retrieved 2009-08-31.

7.^ "NASSCOM-McKinsey Report 2005: Extending India’s Leadership of the Global IT and BPO

Industries!". McKinsey & Company. http://www.edn.com/blog/970000297/post/300013030.html.

Retrieved 20011-07-28.

8.^ "India :: World's Second Largest English Speaking Country". Tesol India. http://tesol-

india.ac.in/EnglishTeachingIndustry/en/india-worlds-second-largest-english-speaking-country. Retrieved

2009-08-31.

9.^ CIA World Factbook: Rank Order - Telephones - main lines in use.

10.^ CIA World Factbook: Rank Order - Telephones - mobile cellular.

11.^ See The World Factbook: Internet users and Internet World Stats.

12.^ World Broadband Statistics Report – Q4 2007.

13.^ Tripathy, Devidutta (2008-07-25). "Reuters (2008), ''India adds 8.94 mln mobile users in June''".

Uk.reuters.com. http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKDEL2193920080725. Retrieved

2010-08-30.

14.^ Kamdar (2006)

15.^ "/ Technology - Capgemini in India milestone". Ft.com. 2009-11-01.

http://www.ft.com/cms/s/0/cca53ba8-c71b-11de-bb6f-

00144feab49a.html?ftcamp=rss&nclick_check=1. Retrieved 2010-07-22.

16.^ http://www.nasscom.in/upload/5216/IT%20Industry%20Factsheet-Aug%202008.pdf



17.^ "Features". The Times Of India. 2007-12-26. http://economictimes.indiatimes.com/bpo-

brigade/outsourcing-industry-faces-health-problems/articleshow/2668934.cms.

18.^ "Average age of a TCS employee". The Times Of India.

http://timesofindia.indiatimes.com/tech/itslideshow/6828801.cms.

19.^ http://teck.in/500-tcs-employees-asked-to-leave-after-appraisal.html

20.^ http://www.siliconindia.com/shownews/Sacked_Wipro_employee_alleges_harassment-nid-

60537.html

21.^ http://www.thehindubusinessline.com/2007/10/19/stories/2007101951332300.htm

22.^ "Global Services - Mumbai, India". Globalservicesmedia.com. 2009-10-15.

http://www.globalservicesmedia.com/Destinations/India/Mumbai,-

India/25/18/901/general200910157557. Retrieved 2010-07-22.

[edit] Further readingAlexander, 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.

[edit] External links Wikimedia Commons has media related to: Information technology in India

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.

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