IT Growth of India

7/30/2019 IT Growth of India

1/7

1. Overview :-The IT & ITes sector includes IT services, engineering design and R&D services, ITES (IT-enabled services) or BPO and hardware.Today IT and ITeS sectors lead the economic growth in terms of employment, export promotion,revenue generation and standards of living. As per NASSCOM estimates, IT/ITeS sector

(excluding hardware) revenues are estimated at USD 87.6 billion in FY 2011-12; and theindustry is expected to grow by 19 per cent during FY 2012-13.The IT/ITeS sector has led to employment opportunities, both direct and indirect, of nearly 2.8million and around 8.9 million respectively. This growth is expected to increase to more than 14million (direct and indirect) by 2015 and to around 30 million by 2030.The market size of the industry is expected to rise to USD 225 billion by 2020 consideringIndia's competitive position, growing demand for exports, Government policy support, andincreasing global footprint.IT/ITeS industry has led India's economic growth and this sector's contribution to the nationalGDP has risen from 1.2 per cent in 1997-98 to an estimated 7.5 per cent in 2011-12.IT/ITES industries are highly localized and clustered in seven cities as of today. These are:

Bangalore, Hyderabad, Chennai, Gurgaon/Noida/New Delhi, Kolkata, Mumbai and Pune.Infrastructure limits and scarcity of land has recently led to expansion to newer places likeAhmedabad, Bhubaneshwar, Chandigarh, Coimbatore, Jaipur, Kochi, Madurai, Mangalore,Mysore and Trivandrum.

2. Introduction to the terms:Information Technology (IT) is defined as the design, development, implementation andmanagement of computer-based information systems, particularly software applications andcomputer hardware. Today, it has grown to cover most aspects of computing andtechnology. The largest firms globally include IBM, HP, Dell and Microsoft.The Information Technology-Enabled Services (ITES) industry provides services that aredelivered over telecom or data network to a range of external business areas. Examples of suchbusiness process outsourcing (BPO) include customer service, web-content development, back office management and network consultancy etc.

3. Factors leading to growth in the IT/ITes sector are :a. Low operating costs and tax advantage.b. Favourable government policies.c. Technically qualified personnel easily available in the country.d. Rapid adoption of IT technologies in major sectors as Telecom, Manufacturing and BFSI.e. Strong growth in export demand from new verticals and non-traditional sectors as public sector,

media and utilities.f. Use of new and emerging technologies such as cloud computing.

g.

SEZ as growth drivers; as more of SEZs are now being set up in Tier II cities and about 43 newtier II/III cities are emerging as IT delivery locations.h. All these factors have given IT/ITES industry in India a strong competitive position with high

market share.4. Employment trends:

As per the Economic Survey 2011-12, the IT/ITeS industries has added 7.96 lakh jobs in oneyear, in the period ending September 2011. According to NASSCOM, employee base in the ruralareas is expected to increase by over 10 times by 2013-14, compared to 5000 in 2009-10.


2/7

According to a customer poll conducted by Booz and Co, India is the most preferred destinationfor engineering offshoring, which are encouraging foreign companies to offshore completeproduct responsibility to Indian ITeS companies.Hyderabad is fast becoming the IT/ITes hub of India with new players hankering to get afoothold here, and existing players continuing to hire aggressively. Large companies such as

Infosys, TCS, Genpact, Deloitte, Facebook, Bank of America, Thomson Reuters, Amazon,Google, Cognizant, Franklin Templeton among others, are growing their presence in the state.According to Andhra Pradesh Government's estimates, the total IT/ITeS sector hiring for 2012-13 could be at about 50,000 professionals.

5. Internet trends:More recently, online retailing, cloud computing and e-commerce are leading to rapid growth inthe IT industry. Online shopping is fast gaining popularity with the emergence of internetretailing and e-commerce.According to the Internet and Mobile Association of India (IAMAI) the number of Internet usersin the country is more than 121 million, out of which 17 million are online shoppers. Increasinginternet penetration and affordability for personal computers has led to this rapid numbers, and

these are expected to triple by 2015.According to IAMAI, online sales of branded apparel almost doubled in volume to 4.99 millionpieces during April 2012, as against 2.54 million in the same month a year ago. Also, E-ticketingcontinued to grow with irctc.com recording 5.56 million bookings in April, 2012, as compared to2.26 million bookings in April 2011.

6. Government Initiatives:In the twelfth Five Year Plan (2012-17), the Department of Information Technology proposes tostrengthen and extend the existing core infrastructure projects to provide more horizontalconnectivity, build redundancy connectivity, undertake energy audits of State Data Centers(SDCs) etc. The core infrastructure including fibre optic based connectivity will be leveragedand additional 150,000 Common Service Centres (CSCs) will be setup to create the rightGovernance and service delivery ecosystem at the Panchayats.

7. References:

Book: -

1) Alexander, Steve, E - Commerce. (2006: from Computers and Information Systems) ,Britannica 2008.

2) Desai, Ashok V. (2006), "Information and other Technology Development", (vol. 2) editedby Stanley Wolpert, pp. 269273, Thomson Gale


3/7

References

*1+China steadily closing gap with India as top BPO des na on (h p://economic mes.

india mes.

com/news/interna onal -business/ China -steadily -closing -gap -with -India -as -top -BPO-des na on/ar cleshow/6912611.

cms), XMG Global, June 2010.*2+"Economic Times (2010), ''Are IT jobs losing sparkle?''"(h p://economic mes.

india mes.

com/news/news -by-industry/jobs/ Are-IT- jobs -losing -sparkle/ar cleshow/6443498.cms).Economic mes.india mes.com. . Retrieved 2010 -08 -30.*3+"Special Economic Zones: Pro ts At Any Cost"(h p://www.doccentre.

net/Tod/SEZs -Pro ts -At-Any-Cost.

php). Doccentre.net. .Retrieved 2010 -07 -22.*4+"Top 50Emerging Global Outsourcing Ci es" (h p://www.i da.

gov.

eg/Documents/Tholons_study.

pdf). www.i da.gov.eg. . Retrieved2010 -07 -22.*5+"India :: World's Second Largest English SpeakingCountry" (h p://www.

newsweek.


4/7

com/id/32285).

The Mythical Million

. . Retrieved2009 -08 -31.*6+"Engineers produced in India, China: It's the QUALITY,stupid!" (h p://www.edn.

com/blog/970000297/post/300013030.

html).

The Mythical Million

. . Retrieved 2009 -08 -31.*7+"India :: World's Second Largest English Speaking Country" (h p://tesol -india.ac.

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

Tesol India

. . Retrieved 2009 -08 -31.*8+

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

. (h ps://www.

cia.

gov/library/publica ons/the -world -factbook/ rankorder/2150rank.

html)*9+

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

(h ps://www.cia.

gov/library/publica ons/the -world -factbook/ rankorder/2151rank.

html)* 1 0 + S e e

The World Factbook: Internet users


5/7

(h ps://www.

cia.

gov/library/publica ons/the -world -factbook/rankorder/2153rank.

html) and

Internet World Stats

(h p://www.

internetworldstats.

com/).*11+

World Broadband Statistics Report

Q4 2007

(h p://point -topic.

com/contentDownload/dslanalysis/world broadband sta s cs q407.pdf).*12+Tripathy, Devidu a (2008 -07 -25). "Reuters (2008), ''India adds 8.94 mln mobile users in June''" (h p://uk.

reuters.

com/ar cle/ UK_SMALLCAPSRPT/idUKDEL2193920080725). Uk.reuters.com. . Retrieved 2010 -08 -30.*13+Kamdar ( 2 0 0 6 ) *14+"/ Technology - Capgemini in India milestone" (h p://www.

.

com/cms/s/0/cca53ba8 -c71b -11de -bb6f -00144feab49a.html? camp=rss&nclick_check=1). Ft.com.2009 -11 -01. . Retrieved 2010 -07 -22.* 1 5 + h t t p : / / w w w.


6/7


7/7

thehindubusinessline.

com/2007/10/19/stories/2007101951332300.

htm*21+"Global Services - Mumbai, India" (h p://www.globalservicesmedia.

com/Des na ons/India/Mumbai, -India/25/18/901/ general200910157557). Globalservicesmedia.com.2009 -10 -15. . Retrieved 2010 -07 -22.