Software Industry in India

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The Indian Information Technology industry accounts for a 5.19% of the country's GDP and export earnings as of 2009

More than 2.5 million people are employed in the sector either directly or indirectly

one of the biggest job creators in India and a mainstay of the national economy. In 2010-11,

annual revenues from IT-BPO sector is estimated to have grown over US$76 billion compared to China with $35.76 billion and Philippines with $8.85 billion

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. 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. India is now one of the biggest IT capitals in the modern world. 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—is summarized by Sharma (2006): Factor Condition – Talent, Cheap labor, English speaking ability, Time Difference

Demand – Job demand,

Supporting Industries – Telecom, English Speaking ability, BPO, Internet cafe, Assembling, Hardware sale

Firm Strategy, Structure & Rivalry – Subsidized Indian version of foreign companies; FDI in software industry, Time Difference; Rivalry high! Many big and small software companies. 119 public mid-large s/w companies while small companies can round around 400-500.

|India’s IT industry (USD bn)[15] | |Particulars |FY 2004 |FY 2005 |FY 2006 |FY 2007 |FY 2008 | |IT Services |10.4 |13.5 |17.8 |23.5 |31.0 | |- Exports |7.3 |10.0 |13.13 |18.0 |23.1 | |- Domestic |3.1 |3.5 |4.5 |5.5 |7.9 | |ITES-BPO |3.4 |5.2 |7.2 |9.5 |12.5 | |- Exports |3.1 |4.6 |6.3 |8.4 |10.9 | |- Domestic |0.3 |0.6 |0.9 |1.1 |1.6 | |Engineering services, R&D and Software products |2.9 |3.9 |5.3 |6.5 |8.6 | |- Exports |2.5 |3.1 |4.0 |4.9 |6.4 | |- Domestic |0.4 |0.7 |1.3 |1.6 |2.4 | |Hardware |5.0 |5.9 |7.0 |8.5 |12.0 | |- Exports |0.5 |0.5 |0.6 |0.5 |0.5 | |- Domestic |4.4 |5.1 |6.5 |8.0 |11.5 | |Total IT industry (including hardware) |21.6 |28.4 |37.4 |48.0 |64 |

Industry Overview

1. GDP

2. Population

Country Diamond0

Firm...
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