Presented TO: Presented By:
Prof: Kapil Suri Kritee Shukla
The 1990s were the golden era of Information
Technology in the country.
It transformed the economic landscape of a
nation that was under the clutches of the
government till 1994.
Liberalization, privatization and globalization
helps the Indian IT market to come in the
golden Scenario.
Today, it is one of the fastest growing nations and
IT/ITES sector is busy writing the success story of
India.
India’s GDP is growing at a massive rate of 8.9%
(estimated FY2010-11). It is expected that the share
of IT/ITES industry in this GDP will be 6.1% as against
1.2% of 1998.
For the past 10 years, GDP of India has grown on an
average 6-7% every year. If a sector’s share in this
growing GDP has increased from 1.2% to 6.1%.
Revenue of IT/ITES of India for FY2010 is expected
to be 71.3 billion USD compared to merely around 6
billion USD in 2000.
The growth in number of employees here for
the past ten years has been 26%, making it
largest employer in the organized private
sector.
Currently, direct employment by this sector
is 2.3 million. Out of total Indian exports,
26% is the share of this sector for FY2010 as
compared to 4 % in 1998.
These are some figures which tell the story
of storming by IT/ITES industry for the past
ten years
The development of this sector has not limited
itself to Tier-I cities like Bengaluru, Chennai,
Hyderabad or NCR. It is going deep into Tier-II or
III cities.
An example is Bhubaneswar, a Tier-III city where
all 4 major Indian IT companies: Infosys, Satyam,
TCS and Wipro are present.
In 2006-07, Orissa’s exports has raised by 60% over
2005-06. To promote this sector, SEZs are being
built around with improvement in roads, retail,
entertainment and housing facilities.
The ratio of employees – technical to non-
technical is 80:20, 4% come from
economically backward class, while 58% of total
employment is from Tier-II/III cities, and 30 %
are in the age group of 18-25 yrs.
These data show how this sector is
penetrating the national economy and
enhancing it right from the root
India was known for exporting low technology
oriented products of low quality.
Now, to compete in the global market,
IT/ITES companies have adopted high quality
standards. This in turn affects other sectors
too.
In the process, not just India’s IT product is
becoming a quality brand. But, overall ‘Made
in India’ is getting quality brand recognition.
Listing of Indian IT/ITES companies in various
global stock exchanges, which requires
abiding by strict global accounting norms,
has helped build a strong image of companies and
sector outside India
. Indian IT/ITES industry is taking a key role
in different acquisitions and mergers of
overseas companies.
This sector had highest share, 23% in
outbound M&A deals in FY2006.
• Growing share of the country’s GDP.
• Boosting the foreign exchange reserve of India.
• Employment generation.
• Additional employment generation.
• Driving growth of other sectors of the
economy.
• Encouraging balanced regional development.
• Fuelling the growth of PE/VC funding.
• Improving the product/service quality level.
• Spurring 1st generation entrepreneurship.
• Front runner in practicing good corporate
governance.
• Boosting the image of India in the global
market.
• Encouraging employment of differently-abled:
60% of the employees.
• Opening opportunities for non-technical
personnel.
• Creating employment opportunities in smaller
towns/cities: 33% to 50% employees.
• Promoting women: over 30% and youth
employment.
• Creating opportunities for the ‘out-of-the-
main-stream’ candidates.
Training of workforce through collaboration with
educational institutes.
• Promoting higher education through
scholarships and tie-ups with educational
institutes.
• Improving work environment by providing
recreational facilities and work-life balance.
• Education
• Employability and entrepreneurship
• Health
• Bridging the digital divide
