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IT Industry in India

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Ali Sadhik Shaik
Ali Sadhik Shaik

The document provides an overview of the IT industry in India, including its growth and statistics. It discusses how India developed an advantage in the IT sector through lower costs and a skilled workforce. Major IT clusters emerged in cities like Bangalore, Hyderabad, and Kolkata, supported by government policies and infrastructure development. Leading Indian IT companies include Tata Consultancy Services, Wipro, Infosys, and Satyam Computer Services. India has become an important R&D hub for many multinational corporations.

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IT Industry in India (A brief walkthrough) Presented by Ali Sadhik Shaik [email_address]
Agenda Introduction and Focus Background and Growth IT Statistics India Advantage IT Clusters Top Players Conclusion
Introduction and Focus
Industry Growth Shri Rajiv Gandhi Regime- 1984 “ Unix Country”- 1986 GE’s partnership- 1989 STP’s Concept- 1990 Foreign Investments Policy-1991 Y2K
Skill shortage Lower costs Legacy Migration Enterprise wide IT Y2K deadlines New capabilities ERPs Faster time to market Bus Continuity Lower cost Business alignment Maximize leverage Innovation Scale 70’s to early 90’s 94-98 99-2001 Mainstream today Scale & Complexity Value to Customer Offshore IT Companies Skilled workforce Cost advantage Legacy platform skills Wider range skills Legacy platform skills Strong execution frameworks Committed delivery Quality excellence R&D investments Business Continuity Project Management Stable companies Investments into Domain & Consulting skills World class Infrastructure Domain / consulting expertise Innovation New Technologies Project Mgmt. Excellence End-to-End Services World Class Companies World class Infrastructure Integration New and Legacy Large Scale Application Dev. Legacy Maintenance What next Total Outsourcing Marching ahead and meeting changing market requirements Medium Large Application Projects ERP/CRM e-Business IT Strategy BPO / ITO Y2K Large Scale Maintenance Staff Augmentation Execution Excellence Customer Satisfaction Cost Competitiveness Change Management GDM
IT Statistics
IT Statistics Below table gives the statistical data of IT industry. *Source: NASSCOM. (USD billion) 2003-‘04 2004-‘05 2005-‘06 2006-‘07 2007-‘08 (projected) Export 12.8 17.7 23.6 31.4 ~ 40 Domestic market 3.9 4.8 6 8.2 ~ 10 Revenue 16.7 22.5 29.6 39.6 50 % contribution to national GDP 3.5 4.1 4.8 5.2 7 % annual growth in revenue 28.2 33.7 31 30 ~ 27
IT Statistics Exporting – 95 countries North America – 63% Europe – 26% Japan & others – 11% Estimation of 2.2 million jobs and US $ 4-5 billion of FDI by 2008 Estimation of US $ 60-70 billion IT revenue by 2010
Share of on-shore & off-shore Off-shore On-shore 4 3 % 5 5 % 6 4 % 7 4 % 5 7 % 4 5 % 3 6 % 2 9 % 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 % of revenue
FDI in IT-ITES CAGR-178.6%
India Advantage
India Advantage
India Advantage Cost Advantage
India Advantage Vast access to skill base Strong Quality orientation Availability of high quality infrastructure Government Policies Mature industry eco-system Venture capital and private equity Prestigious educational institutes
IT Clusters
IT Clusters
IT Clusters Bangalore -- Local government support -- Infrastructure -- Availability of Knowledge -- Favorable environment for R & D -- First mover advantage Hyderabad -- Entrepreneurial visionary Leader Kolkata -- Entrepreneurial Leader
Major players Tata Consultancy Services Ltd. Ranked 1 in 2005 by NASSCOM Incorporated - 1968 Revenues - USD 2.97 Bn 71,000 employees Wipro Technologies Ltd. Ranked 3 in 2005 by NASSCOM Incorporated - 1997 Revenues - USD 1.81 Bn over 50,000 employees Infosys Technologies Ltd. Ranked 2 in 2005 by NASSCOM Incorporated - 1991 Revenues - USD 2.04 Bn 52,700 employees Satyam Computer Services Ltd. Ranked 4 in 2005 by NASSCOM Incorporated - 1987 Revenues - USD 0.72 Bn 24,798 employees
India: The R&D Hub for MNCs
Conclusion
Reference: Sarala V.Nagala. (2006). India's Story of Success. Stanford Journal of International Relations. K Ramachandran, (2004).ISB. Formation of Information Technology clusters: How late movers follow models different from early movers presented at NSF workshop Bangalore. T.N. Srinivasan, Samuel C. Park, Jr. Professor of Economics, Yale University. (2005, September). Information Technology enabled services and India’s growth prospect. Sankaran Krishna. (2005). India: Globalisation and IT Development. South Asian Journal. Ashok Jhunjhunwala (2003). Can Information Technology Help Transform India? IIT Madras. KPMG (2006, January) Report on Indian IT Sector. www.ibef.org –The India Brand Equity Foundation. www.nasscom.org – National Association of Software and Service Companies. Government of India Ministry of Communications & Information Technology Department of Information Technology (2003) . "Task force on meeting the Human Resources Challenge for IT and IT enabled Services".

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IT Industry in India

  • 1. IT Industry in India (A brief walkthrough) Presented by Ali Sadhik Shaik [email_address]
  • 2. Agenda Introduction and Focus Background and Growth IT Statistics India Advantage IT Clusters Top Players Conclusion
  • 4. Industry Growth Shri Rajiv Gandhi Regime- 1984 “ Unix Country”- 1986 GE’s partnership- 1989 STP’s Concept- 1990 Foreign Investments Policy-1991 Y2K
  • 5. Skill shortage Lower costs Legacy Migration Enterprise wide IT Y2K deadlines New capabilities ERPs Faster time to market Bus Continuity Lower cost Business alignment Maximize leverage Innovation Scale 70’s to early 90’s 94-98 99-2001 Mainstream today Scale & Complexity Value to Customer Offshore IT Companies Skilled workforce Cost advantage Legacy platform skills Wider range skills Legacy platform skills Strong execution frameworks Committed delivery Quality excellence R&D investments Business Continuity Project Management Stable companies Investments into Domain & Consulting skills World class Infrastructure Domain / consulting expertise Innovation New Technologies Project Mgmt. Excellence End-to-End Services World Class Companies World class Infrastructure Integration New and Legacy Large Scale Application Dev. Legacy Maintenance What next Total Outsourcing Marching ahead and meeting changing market requirements Medium Large Application Projects ERP/CRM e-Business IT Strategy BPO / ITO Y2K Large Scale Maintenance Staff Augmentation Execution Excellence Customer Satisfaction Cost Competitiveness Change Management GDM
  • 7. IT Statistics Below table gives the statistical data of IT industry. *Source: NASSCOM. (USD billion) 2003-‘04 2004-‘05 2005-‘06 2006-‘07 2007-‘08 (projected) Export 12.8 17.7 23.6 31.4 ~ 40 Domestic market 3.9 4.8 6 8.2 ~ 10 Revenue 16.7 22.5 29.6 39.6 50 % contribution to national GDP 3.5 4.1 4.8 5.2 7 % annual growth in revenue 28.2 33.7 31 30 ~ 27
  • 8. IT Statistics Exporting – 95 countries North America – 63% Europe – 26% Japan & others – 11% Estimation of 2.2 million jobs and US $ 4-5 billion of FDI by 2008 Estimation of US $ 60-70 billion IT revenue by 2010
  • 9. Share of on-shore & off-shore Off-shore On-shore 4 3 % 5 5 % 6 4 % 7 4 % 5 7 % 4 5 % 3 6 % 2 9 % 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 % of revenue
  • 10. FDI in IT-ITES CAGR-178.6%
  • 13. India Advantage Cost Advantage
  • 14. India Advantage Vast access to skill base Strong Quality orientation Availability of high quality infrastructure Government Policies Mature industry eco-system Venture capital and private equity Prestigious educational institutes
  • 17. IT Clusters Bangalore -- Local government support -- Infrastructure -- Availability of Knowledge -- Favorable environment for R & D -- First mover advantage Hyderabad -- Entrepreneurial visionary Leader Kolkata -- Entrepreneurial Leader
  • 18. Major players Tata Consultancy Services Ltd. Ranked 1 in 2005 by NASSCOM Incorporated - 1968 Revenues - USD 2.97 Bn 71,000 employees Wipro Technologies Ltd. Ranked 3 in 2005 by NASSCOM Incorporated - 1997 Revenues - USD 1.81 Bn over 50,000 employees Infosys Technologies Ltd. Ranked 2 in 2005 by NASSCOM Incorporated - 1991 Revenues - USD 2.04 Bn 52,700 employees Satyam Computer Services Ltd. Ranked 4 in 2005 by NASSCOM Incorporated - 1987 Revenues - USD 0.72 Bn 24,798 employees
  • 19. India: The R&D Hub for MNCs
  • 21. Reference: Sarala V.Nagala. (2006). India's Story of Success. Stanford Journal of International Relations. K Ramachandran, (2004).ISB. Formation of Information Technology clusters: How late movers follow models different from early movers presented at NSF workshop Bangalore. T.N. Srinivasan, Samuel C. Park, Jr. Professor of Economics, Yale University. (2005, September). Information Technology enabled services and India’s growth prospect. Sankaran Krishna. (2005). India: Globalisation and IT Development. South Asian Journal. Ashok Jhunjhunwala (2003). Can Information Technology Help Transform India? IIT Madras. KPMG (2006, January) Report on Indian IT Sector. www.ibef.org –The India Brand Equity Foundation. www.nasscom.org – National Association of Software and Service Companies. Government of India Ministry of Communications & Information Technology Department of Information Technology (2003) . "Task force on meeting the Human Resources Challenge for IT and IT enabled Services".