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 2010, annual revenues from outsourcing operations in India amounted to US$54.33 billion compared to China with $35.76 billion and Philippines with $8.85 billion.[1] India's outsourcing industry 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, Kolkata, Pune, Mumbai, NCR, and Bhubaneshwar. 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.[2]
India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs.[3] 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.[4]
Each year India produces roughly 500,000 engineers in the country,[5][6] 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.[7] 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,[8] a total of 506,040,000 mobile phone connections,[9] a total of 81,000,000 Internet users—comprising 7.0% of the country's population,[10] 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.[11] Total fixed-line and wireless subscribers reached 543.20 million as of November, 2009.[12]
Formative years (till 1991)
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[3] 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. 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. Kapur (2006)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. In the Encyclopedia of India, Kamdar (2006) reports on the role of Indian immigrants (1980 - early 1990s) in promoting technology-driven growth:
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. MTNL underwent technological improvements. 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), and the academic research oriented Education and Research Network (ERNET).
1991–2001
Regulated VSAT links became visible in 1985. Desai (2006) describes the steps taken to relax regulations on linking in 1991:
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.
The Indian economy underwent economic reforms in 1991, leading to a new era of globalization and international economic integration. 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. 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.
Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information Technology and Software Development:
The New Telecommunications Policy, 1999 (NTP 1999) helped further liberalize India's telecommunications sector. The Information Technology Act 2000 created legal procedures for electronic transactions and e-commerce.
Throughout the 1990s, another wave of Indian professionals entered the United States. The number of Indian Americans reached 1.7 million by 2000. This immigration consisted largely of highly educated technologically proficient workers. Within the United States, Indians fared well in science, engineering, and management. Graduates from the Indian Institutes of Technology (IIT) became known for their technical skills. The success of Information Technology in India not only had economic repercussions but also had far-reaching political consequences. India's reputation both as a source and a destination for skilled workforce helped it improve its relations with a number of world economies. The relationship between economy and technology—valued in the western world—facilitated the growth of an entrepreneurial class of immigrant Indians, which further helped aid in promoting technology-driven growth.
2001–present
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):
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.
chennai
Next to Bangalore Chennai plays an important role in IT. Lot of companies were developed in Chennai, in the last few years.
And Mumbai too has its share of IT companies that are India's first and largest, like TCS and well established like Reliance, Patni, LnT Infotech, i-Flex, WNS, Shine, Naukri, Jobspert etc are head-quartered in Mumbai. and these IT and dot com companies are ruling the roost of Mumbai's relatively high octane industry of Information Technology.
Such is the growth in investment and outsourcing, it was revealed that Cap Gemini will soon have more staff in India than it does in its home market of France with 21,000 personnel+ in India.[13]
On 25 June 2002 India and the European Union agreed to bilateral cooperation in the field of science and technology. A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. India holds observer status at CERN while a joint India-EU Software Education and Development Center is due at Bangalore.
| 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. |
Top Eight IT Hubs in India
| Ranking | City | Description |
|---|---|---|
| 1 | Bangalore | Popularly known as the capital of the Silicon Valley of India is currently leading in Information Technology Industries in India. |
| 2 | Chennai | Famously known as "Gateway of South India", it is the second largest exporter of Software.[15] |
| 3 | Hyderabad | Hyderabad which has good infrastructure and good government support is also a good technology base in India. |
| 4 | Pune | Pune, 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. |
| 5 | Kolkata | Kolkata which is slowly becoming a major IT hub in near future. All major IT companies are present here. |
| 6 | NCR | The 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. |
| 7 | Mumbai | Popularly 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.[16] TCS, Patni, LnT Infotech, I-Flex WNS and other companies are headquartered here. |
| 8 | Bhubaneswar | The 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. |
See also
References
- ^ China steadily closing gap with India as top BPO destination, XMG Global, June 2010.
- ^ "Economic Times (2010), ''Are IT jobs losing sparkle?''". Economictimes.indiatimes.com. Retrieved 2010-08-30.
- ^ a b "Special Economic Zones: Profits At Any Cost". Doccentre.net. Retrieved 2010-07-22.
- ^ "Top 50 Emerging Global Outsourcing Cities" (PDF). www.itida.gov.eg. Retrieved 2010-07-22.
- ^ "India :: World's Second Largest English Speaking Country". The Mythical Million. Retrieved 2009-08-31.
- ^ "Engineers produced in India, China: It's the QUALITY, stupid!". The Mythical Million. Retrieved 2009-08-31.
- ^ "India :: World's Second Largest English Speaking Country". Tesol India. Retrieved 2009-08-31.
- ^ CIA World Factbook: Rank Order - Telephones - main lines in use.
- ^ CIA World Factbook: Rank Order - Telephones - mobile cellular.
- ^ See The World Factbook: Internet users and Internet World Stats.
- ^ World Broadband Statistics Report – Q4 2007.
- ^ Tripathy, Devidutta (2008-07-25). "Reuters (2008), ''India adds 8.94 mln mobile users in June''". Uk.reuters.com. Retrieved 2010-08-30.
- ^ "/ Technology - Capgemini in India milestone". Ft.com. 2009-11-01. Retrieved 2010-07-22.
- ^ http://www.nasscom.in/upload/5216/IT%20Industry%20Factsheet-Aug%202008.pdf
- ^ http://www.thehindubusinessline.com/2007/10/19/stories/2007101951332300.htm
- ^ "Global Services - Mumbai, India". Globalservicesmedia.com. 2009-10-15. Retrieved 2010-07-22.
Further reading
- Alexander, Steve, E-Commerce. (2006: from Computers and Information Systems), Encyclopædia Britannica 2008.
- Chand, Vikram K. (2006), Reinventing public service delivery in India: Selected Case Studies, Sage Publications, ISBN 0-7619-3489-8.
- Desai, Ashok V. (2006), "Information and other Technology Development", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 269–273, Thomson Gale, ISBN 0-684-31351-0.
- Kamdar, Mira (2006), "Indo -U.S. Relations, Cultural Exchanges in", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 236–239, Thomson Gale, ISBN 0-684-31351-0.
- Kapur, Devesh (2006), "Diaspora" in Encyclopedia of India (vol. 1) edited by Stanley Wolpert, pp. 328–331, Thomson Gale, ISBN 0-684-31350-2.
- Ketkar, Prafulla (2006), "European Union, Relations with (Science and technology)", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 48–51, Thomson Gale, ISBN 0-684-31351-0.
- Nanda, B. R. (2006), "Nehru, Jawaharlal", Encyclopedia of India (vol. 3) edited by Stanley Wolpert, pp. 222–227, Thomson Gale, ISBN 0-684-31352-9.
- Rothermund, Dietmar (2006), "Andhra Pradesh", Encyclopedia of India (vol. 1) edited by Stanley Wolpert, pp. 43–44, Thomson Gale, ISBN 0-684-31350-2.
- Sharma, Jagdish (2006), "Diaspora: History of and Global Distribution", Encyclopedia of India (vol. 1) edited by Stanley Wolpert, pp. 331–336, Thomson Gale, ISBN 0-684-31350-2.
- Sharma, Shalendra D. (2006), "Globalization", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 146–149, Thomson Gale, ISBN 0-684-31351-0
- Vrat, Prem (2006), "Indian Institutes of Technology", Encyclopedia of India (vol. 2) edited by Stanley Wolpert, pp. 229–231, Thomson Gale, ISBN 0-684-31351-0.
- Wolcott, P. & Goodman, S. E. (2003), Global Diffusion of the Internet – I India: Is the Elephant Learning to Dance?, Communications of the Association for Information Systems, 11: 560-646.
External links
- India's Top IT Companies 2007, D&B Industry Research Service.
- Kanellos, Michael (2005), India's renaissance , CNET News.com.
- India’s Information Technology Industry, Indian Embassy to the United States of America, Government of India.
- India technology news
- Database of small-medium IT companies in India, Precision Consultants
- Computer caste Photo documentary on social aspects of IT revolution in India. By photographer Wim Klerkx, 2001/2002.
