Information technology industry of india
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IT industry in India,Overview, history and Recent trend.
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Information technology industry of india
- 1. INFORMATION TECHNOLOGY INDUSTRY IN INDIA By:- Ajay Kumar Assistant Professor Management Department Punjab College of Technical Education Ludhiana
- 2. OVERVIEW • 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. • However, only 2.5 million people are employed in the sector either directly or indirectly. • In 2010-11, annual revenues from IT -BPO sector is estimated to have grown over $54.33 billion compared to China with $35.76 billion and Philippines with $8.85 billion. • It is expected to touch at US$225 billion by 2020. The most prominent IT hub are Bangalore and Hyderabad. • The other emerging destinations are Chennai, Coimbatore, Kolkata, Kochi, Pune, Mumbai, Ahmedaba.
- 3. OVERVIEW • 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.
- 4. OVERVIEW • 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% of the country's software exports happened out of SEEPZ, Mumbai in 80s
- 5. HISTORY • 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 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.
- 6. HISTORY • 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.
- 7. HISTORY • 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.
- 8. HISTORY • 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), • The academic research oriented Education and Research Network (ERNET).
- 9. RECENT DEVELOPMENT • 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. • 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.
- 10. RECENT DEVELOPMENT • 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. • 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.
- 11. RECENT DEVELOPMENT • 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. • India is now one of the biggest IT capitals in the modern world.