Saturday, October 30, 2010

Information technology in India

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 2.3 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 March 2009, annual revenues from outsourcing operations in India amounted to US$50 billion and this is expected to increase to US$225 billion by 2020. The most prominent IT hub is IT capital Bangalore. The other emerging destinations are Chennai, Hyderabad, Mumbai, Pune, Bhubaneswar, NCR, Jaipur and Kolkata. 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.
India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. 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.

Each year India produces roughly 500,000 engineers in the country, out of them only 25% to 30% possessed both technical competency and English language skills, although 12% of India's population can speak in English. 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, a total of 506,040,000 mobile phone connections, a total of 81,000,000 Internet users—comprising 7.0% of the country's population, 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. Total fixed-line and wireless subscribers reached 543.20 million as of November, 2009.



Top Seven IT Hubs in India

RankingCity/RegionDescription
1BangalorePopularly known as the capital of the Silicon Valley of India is currently leading in Information Technology Industries in India.
2ChennaiFamously known as "Gateway of South India", it is the second largest exporter of Software.[14]
3HyderabadHyderabad which has good infrastructure and good government support is also a good technology base in India.
4PunePune, a major industrial town, hosts numerous multinational and national software giants along with BPO and KPO firms. World class SEZs like Hinjawadi IT park and Magarpatta city give Pune a distinct advantage. The city is a major educational hub and churns out thousands of technocrats every year.
5KolkataKolkata which is slowly becoming a major IT hub in near future. Some of the well known technological corporations are si
6NCRThe 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.
7MumbaiPopularly 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.TCS, Patni, LnT Infotech, I-Flex WNS and other companies are headquartered here.
8BhubaneswarThe capital City of Odisha India, Bhubaneswar is one of the emerging IT City in India. Hosting all four major Indian IT company: Infosys , Satyam, TCS and Wipro. Have IT SEZ on Infocity-I and new SEZ is going to start on Infocity-II. There are many Large, Mid and Small It companies present in this City from last 2 decades .

India's IT industry (USD bn)
ParticularsFY 2004FY 2005FY 2006FY 2007E
IT Services10.413.517.823.7
- Exports7.310.013.1318.1
- Domestic3.13.54.55.6
ITES-BPO3.45.27.29.5
- Exports3.14.66.38.3
- Domestic0.30.60.91.2
Engineering services, R&D and Software products2.93.95.36.5
- Exports2.53.14.04.9
- Domestic0.40.71.31.6
Hardware5.05.97.08.2
Total IT industry21.628.437.447.8
- Exports13.418.224.131.9
- Domestic8.310.213.215.9

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