Pie in the Sky - India's IT Industry
Current Affairs Quiz - new
The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector.
IT-ITES industry has two major components: IT Services and business process outsourcing (BPO).
The growth in the service sector in India has been led by the IT-ITES sector, contributing substantially to increase in GDP, employment, and exports.
The sector contributes to India's GDP up to 7.5% in FY2012. According to NASSCOM, the IT-BPO sector in India aggregated revenues of US$100 billion in FY2012.
The major cities that account for about nearly 90% of this sectors exports are Bangalore, Chennai, Hyderabad, Delhi, Mumbai and Kolkata.
Export dominate the IT-ITES industry, and constitute about 77% of the total industry revenue.
Though the IT-ITES sector is export driven, the domestic market is also significant with a robust revenue growth.
The industry's share of total Indian exports (merchandise plus services) is about 25% in FY2012.
According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.
This sector continues to be a net employment generator providing direct employment to about 2.8 million, and indirectly employing 8.9 million people.
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.
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 parks. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 1980s.