Informationtechnology industry is one of the most important growth contributors forIndia’s economy. IT industry has played a significant role in transformingIndia from a slow moving bureaucratic economy to a land of entrepreneurs.
It isa global player in providing world class technological solutions and businessservices, it has also played a role in transforming India from a rural & agriculture-basedeconomy to a knowledge based economy. Information Technology has made it apossible way of accessing information at gigabit speeds. It has made tremendousimpact on the lives of millions of people who are poor, marginalized and livingin rural areas. Internet has made revolutionarychanges with possibilities of e-government measures like e-health, e-education,e-agriculture, etc. But now, whether it’s filing Income Tax returns or applyingfor passports online or railway e-ticketing, it just need a click of the mouse.India’s IT potential is on a steady march towards global competitiveness,improving defense capabilities and meeting up energy and environmentalchallenges amongst others.
IT-ITeS sector in India, which mainly focuses onincreasing technology adoption, and developing new delivery platforms, hasadded loads of earnings. After the economicreforms of 1991-92, fiscal incentives provided by the central and the StateGovernments of India, such as : liberalization of external trade, eliminationof duties on imports of information technology products, relaxation of controlson both inward and outward investments and foreign exchange, setting up ofExport Oriented Units (EOU), Software Technology Parks (STP), and Special EconomicZones (SEZ), has made India to flourish and acquire predominant position inworld’s Information technology scenario. To mitigate and promote Indian ITindustry, the Government of India had set up a National Task Force on IT andSoftware Development to examine the workability of strengthening the industry.Venture capital has been the main source of finance for software industryaround the world. The Government of India is also actively providing fiscalincentives and liberalizing norms for FDIand raising capital abroad.
After 2011, the country’s growth has reflected onnew demands for IT goods and services, with a major use of private and publiccloud and mobile computing on a variety of devices and through a wide of newsoftware applications. Foreign technology induction is also encouraged boththrough FDI and through foreign technology collaboration agreements. Indiawelcomes investors in Information Technology sector. Greater transparency inpolicies and procedures has made India an investor friendly platform. A foreigncompany can hold equity in Indiancompany’s up to 100%. ChallengesCyber security and quality management are few key areas of concern in today’sinformation age. To overcome such issues in today’s global IT world, anincreasing number of IT-BPO companies in India have gradually started toemphasize on quality to adopt global standards such as ISO 9001 (for QualityManagement) and ISO 27000 (for Information Security).
India aims to transformitself into a truly developed and empowered society by 2020. But still toachieve this growth, the IT sector has to continue to re-invent itself andstrive hard enough, through new business models, global delivery, partnershipsand transformation. A collaborative effort from all the shareholders will beneeded to make future growth of India’s IT-ITeS sector. India is one of the biggestIT capitals in the world and has presence of all the major players in the worldIT sector. HCL, Wipro, Infosys and TCS are few of the well-known names of ITcompanies in India. As the years passed by, verticals such as manufacturing,telecom, insurance, banking, finance and lately the retail, have been thegrowth contributors for this sector.
But it is very fast getting clear that,future growth of IT and ITES sectors will be geared up by the verticals ofclimate change, mobile applications, healthcare, energy efficiency and sustainableenergy. The future for Indian IT industry sees a significant rise in share oftechnology spent, with more service providers in both Indian and global target andto bring about new segments and to provide low cost, flexible solutions tocustomers. The IT sector has also led to massive employmentgeneration in India. The industry continues to bring in employment, thus directly employing about 2.
8 million people andindirectly employing 8.9 million, making it a dominant player in the globaloutsourcing sector. However, it continues to face challenges of competitiveness in the globalized and modern world,particularly from countries like China and Philippines. The IT sector in Indiahas paved employment for many people. The Indian IT market currently focuses onproviding low-cost solutions in the services business of global IT. Thepresence of Indian companies in the product development business of global ITis very less yet, this number is slowly on the rise of late.
The prominent trendis that IT jobs, once were centralized to Bangalore, and are slowly starting toexperience a geographical spread into other cities like Chennai, Hyderabad andPune. According to Google, theIndian community of developers will be the largest in the world by 2018.