Information Technology in India

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The information technology - IT as it is more famously know plays an important role in our Indian economy and today’s commercial world. The ongoing recession has left its impact on the IT industry we have discussed this in our project. The IT sector was always stressful and the recession has left it more so with overseas IT workers returning home for employment.

Though recession has not affected the Indian economy the way it has other countries like USA & UK it has left its imprint. It does remain a sector with tremendous opportunities and many young guns seeking it. We have included various case studies on the same to help better understand the IT scenario.


Information Technology, India

Formative years

The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories. Tata Consultancy Services—established in 1968 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, second in numbers only to that of the United States of America and the Soviet Union. On 18 August 1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N. R. Sarkar. 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. The reason for this immigration was rooted in India producing more engineers through its education system—expanded during the 1950s—than its industry was able to absorb. 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.

2001 to present Information Technology in India accounts for a substantial part of the country's GDP and export earnings while providing employment to a significant number of its tertiary sector workforce. 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. Out of 400, 000 engineers produced per year in the country, 100, 000 possessed both technical competency and English language skills. India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections. By 2008, India also has a total of 49,750,000 telephone lines in use, a total of 233,620,000 mobile phone connections, a total of 60,000,000 Internet users—comprising 6.0% of the country's population, and 4,010,000 people in the country have access to broadband Internet— making it the 18th largest country in the world in terms of broadband Internet users. Total fixed-line and wireless subscribers reached 325.78 million as of June, 2009. The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent in 2001. IT-enabled services such as back office operations, remote maintenance, accounting, public call centers, medical transcription, insurance claims, and other bulk processing are rapidly expanding. The city of Hyderabad is now known as Cyber Abad, and Indian companies such as TCS, Wipro, and Infosys may yet become household names around the world.

Indian IT professionals are homeward bound...
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