India has emerged as the fastest growing IT hub in the world, its growth dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, IS Outsourcing, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services.
When it comes to IT services, the world is coming to India. With a CAGR of 28 per cent during the last 5 years, the IT-ITES industry’s contribution to India’s GDP has risen from 1.2 per cent during 1999-2000 to 4.8 per cent in 2005-06.
❖ Growth Curve
A survey by the National Association of Software and Services Companies (Nasscom) shows why the Indian IT industry has become a case study of success:
• The Indian IT-ITES industry has recorded 33 per cent growth in exports, clocking revenues of US$ 23.6 billion in FY 2005-06, as compared with export revenues of US$ 17.7 billion in FY 2004-05. • FY 2005-06 also saw the overall Indian IT-ITES industry (including domestic market) growing by 31 per cent registering revenues of US$ 29.6 billion, up from US$ 22.5 billion in 2004-05. • Of the total IT-ITES exports in FY 2005-06, IT software and services grew by 33 per cent, registering revenues of US$ 13.3 billion • The ITES-BPO segment clocked revenues of US$ 6.2 billion, recording a growth of 37 per cent. • Engineering services and product exports grew from US$ 3.14 billion in FY 04-05 to US$ 4 billion in FY 05-06. • Domestic market clocked revenues of US$ 6 billion in FY 04-05 from US$ 4.8 billion in FY 05-06.
❖ Growth Drivers
According to Nasscom, the growth in India 's services exports has been led by many factors, including: • A strong demand and increased traction for traditional services like ADM • New services like EAI (Enterprise Application Integration) and package implementation • New areas like engineering services. •
Bibliography: www.wipro.com www.wipro.in www.nasscom.org Annual Reports –Wipro Ltd & Infosys Ltd. Banglore Tiger Steve Hamm, Tata Mc-Graw Hill Publication http://www.timesnow.tv ----------------------- 28%