The information technology industry in India comprises information technology services, consulting, and outsourcing.[1] The share of the IT-BPM sector in the GDP of India is 7.4% in FY 2022.[2][3] The IT and BPM industries' revenue is estimated at $230 billion in FY 2022.[4][5] The domestic revenue of the IT industry is estimated at $49 billion, and export revenue is estimated at $181 billion in FY 2022.[4][5] The IT–BPM sector overall employs 5 million people as of March 2022.[4][5]
The Indian IT–BPM industry has the highest employee attrition rate.[6][7][8][9][10] In recent years the industry has been witnessing skyrocketing resignations cutting across hierarchy.[6][8][10] As a global outsourcing hub, the Indian IT industry benefits from lower cost of living and the consequent cheaper labour.[11][12][13] As IT–BPM sector evolves, many are concerned that artificial intelligence (AI) will drive significant automation and destroy jobs in the coming years.[14][15] The United States accounts for two-thirds of India's IT services exports.[16][17][18][19][20][21] These fake documents are provided by consultancies that are mainly operating out of Hyderabad and Bangalore.[22][23][24] In order to clear interviews, IT professionals often opt for proxy interviews, but most of the fake candidates are rejected during the interview round.[25]
India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Consultancy Services[26] who in 1977 partnered with Burroughs which began India's export of IT services.[27] The first software export zone, SEEPZ – the precursor to the modern-day IT park – was established in Mumbai in 1973. More than 80 percent of the country's software exports were from SEEPZ in the 1980s.[28]
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 Telecommunication 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.
TIDEL Park in Chennai was the largest IT park in Asia when it was opened in 1999.
Regulated VSAT links became visible in 1994.[29] Desai (2006) describes the steps taken to relax 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.
A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. On 25 June 2002, India and the European Union agreed to bilateral cooperation in the field of science and technology. From 2017, India holds an Associate Member State status at CERN, while a joint India-EU Software Education and Development Center will be located in Bangalore.[30]
In the contemporary world economy, India is the largest exporter of IT. The contribution of IT sector in India's GDP rose from 1.2% in 1998 to 10% in 2019.[31] Exports dominate the Indian IT industry and constitute about 79% of the industry's total revenue. However, the domestic market is also significant, with robust revenue growth.[32]
The industry's share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. The technologically-inclined services sector in India accounts for 40% of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce, according to Sharma (2006). According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Wipro, Tech Mahindra, and HCL Technologies.[33]
The IT and BPM industry's revenue is estimated at US$194 billion in FY 2021, an increase of 2.3% YoY.[3] The domestic revenue of the IT industry is estimated at US$45 billion and export revenue is estimated at US$150 billion in FY 2021.[3] The IT industry employed almost 2.8 million employees in FY 2021.[34] The IT–BPM sector overall employs 4.5 million people as of March 2021.[35]
In 2022, companies within the sector faced significant employee attrition and intense competition in hirings.[36] Indian IT revenues grow fastest in a decade to $227 billion in COVID-19 pandemic -hit FY22. The IT–BPM sector overall employs 5 million people as of March 2022. NASSCOM in its Strategic Review predicted that the IT industry can achieve the ambitious target of being a US$ 350 billion by FY26 growing at a rate of 11-14 per cent.
Largest Indian IT companies based on market capitalisation
Top IT services companies in India in 2022 by market capitalization.[37][38][39][40][41] In September 2021, TCS recorded a market capitalisation of US$ 200 billion, making it the first Indian IT tech company to do so.[42][43][44] On 24 August 2021, Infosys became the fourth Indian company to reach $100 billion in market capitalization.[45][46]
Kolkata is one of the major and the biggest IT hub of East India. As of 2020, The IT sector employs more than 200,000 people directly. Total export from IT sector was estimated at ₹22,897 crore in 2018-19.[76]
Major software companies such as Tata Consultancy Services, Capgemini, Wipro, Ericsson, Mindtree, Cognizant, Accenture, ITC Infotech, RS Software, IBM have their offices set up at Salt Lake and Newtown, which falls under Kolkata Metropolitan Region.
[77][78]
Delhi NCR
Delhi NCR is one of the major IT hub in India. Cities in NCR like Gurgaon and Noida have several companies that serves the local and global markets who take help from these IT hubs.[79] Major software companies like Microsoft, Oracle Corporation and Adobe Systems have their presence in Noida and Gurgaon.
In addition to the above mentioned major IT companies, Delhi NCR has witnessed tremendous growth of emerging IT startups as well as branches of international IT companies in service as well as product domain. Appy Pie AppsBuilder, Affle, Appinventiv, KiwiTech and Appsums[80] are some of such emerging Information Technology companies in the region.
^Inc, lbp (2013). India Telecom Laws and Regulations Handbook. Int'l Business Publication. p. 300. ISBN978-1433081903. ((cite book)): |last1= has generic name (help)
Parayil, G. (2016). Political Economy and Information Capitalism in India: Digital Divide, Development Divide and Equity Technology, Globalization and Development. Springer. ISBN978-0-2-305-9561-3.
Vittal, N.; Mahalingam, S. (2001). Information Technology: India's Tomorrow. Manas Publications. ISBN978-8-170-49119-4.
Ezer, Jonathan (2010). Perceptions of Information Technology in India: A study of the institutional forces that impact how technology is taught, and learned, at Indian Universities. LAP Lambert Academic Publishing. ISBN978-3-838-37279-2.
Arora, Payal. "Politics of Algorithms, Indian Citizenship, and the Colonial Legacy." Global Digital Cultures: Perspectives from South Asia, edited by ASWIN PUNATHAMBEKAR and SRIRAM MOHAN, University of Michigan Press, 2019, pp. 37–52, JSTORj.ctvndv9rb.5.
Gupta, S. D., Raychaudhuri, A. and Haldar, S. K. (2015) 'Determinants of Exports of Information Technology in India: An Empirical Analysis', South Asia Economic Journal, 16(1), pp. 64–81. doi:10.1177/1391561415575128
Dedrick, Jason, and Kenneth L. Kraemer. "Information Technology in India: The Quest for Self-Reliance." Asian Survey, vol. 33, no. 5, University of California Press, 1993, pp. 463–92, doi:10.2307/2645313.
Ramesh Subramanian (2006) India and Information Technology: A Historical & Critical Perspective, Journal of Global Information Technology Management, 9:4, 28-46, doi:10.1080/1097198X.2006.10856431
M.D., Pradeep and B.K., Ravindra, Effective Disbursement of Social Security Benefits to the Labour through Information Technology in India (April 15, 2017). International Journal of Advanced Trends in Engineering and Technology (IJATET), Volume I, Issue I, 2016, SSRN2995342
Krishnan, Rishikesha T., and Ganesh N. Prabhu. "Innovation in the Indian Information Technology Industry: A Study of the Software Product Development Process." Science, Technology and Society 7, no. 1 (March 2002): 91–115. doi:10.1177/097172180200700105
