Information technology in India

The information technology industry in India comprises information technology services, consulting, and outsourcing. The share of the IT-BPM sector in the GDP of India is 7.4% in FY 2022. The IT and BPM industries' revenue is estimated at $227 billion in FY 2022. The domestic revenue of the IT industry is estimated at $49 billion, and export revenue is estimated at $178 billion in FY 2022. The IT–BPM sector overall employs 5 million people as of March 2022.

The Indian IT–BPM industry has the highest employee attrition rate. In recent years the industry has been witnessing skyrocketing resignations cutting across hierarchy. As a global outsourcing hub, the Indian IT industry benefits from lower cost of living and the consequent cheaper labour. As IT–BPM sector evolves, many are concerned that artificial intelligence (AI) will drive significant automation and destroy jobs in the coming years. The United States accounts for two-thirds of India's IT services exports. The Indian IT industry is notorious because a large number of IT professionals entering the industry with forged experience certificates. These fake documents are provided by consultancies that are mainly operating out of Hyderabad and Bangalore. In order to clear interviews, IT professionals often opt for proxy interviews, but most of the fake candidates are rejected during the interview round.

History

India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Consultancy Services who in 1977 partnered with Burroughs which began India's export of IT industries.services. The first software export zone, SEEPZ – the precursor to the modern-day IT park – was established in Mumbai in 1973. More than 80 percent of the country's software exports were from SEEPZ in the 1980s.

Regulated VSAT links became visible in 1994. Desai (2006) describes the steps taken to relax regulations on linking in 1991:

A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. On 25 June 2002, India and the European Union agreed to bilateral cooperation in the field of science and technology. From 2017, India holds an Associate Member State status at CERN, while a joint India-EU Software Education and Development Center will be located in Bangalore.

Indian IT revenues

In the contemporary world economy, India is the largest exporter of IT. The contribution of IT sector in India's GDP rose from 1.2% in 1998 to 10% in 2019. Exports dominate the Indian IT industry and constitute about 79% of the industry's total revenue. However, the domestic market is also significant, with robust revenue growth.

The industry's share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. The technologically-inclined services sector in India accounts for 40% of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce, according to Sharma (2006). According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Wipro, Tech Mahindra, and HCL Technologies.

The IT and BPM industry's revenue is estimated at US$194 billion in FY 2021, an increase of 2.3% YoY. The domestic revenue of the IT industry is estimated at US$45 billion and export revenue is estimated at US$150 billion in FY 2021. The IT industry employed almost 2.8 million employees in FY 2021. The IT–BPM sector overall employs 4.5 million people as of March 2021.

In 2022, companies within the sector faced significant employee attrition and intense competition in hirings. Indian IT revenues grow fastest in a decade to $227 billion in COVID-19 pandemic -hit FY22. The IT–BPM sector overall employs 5 million people as of March 2022. NASSCOM in its Strategic Review predicted that the IT industry can achieve the ambitious target of being a US$ 350 billion by FY26 growing at a rate of 11-14 per cent.

Largest Indian IT companies based on market capitalisation

Top IT services companies in India in 2022 by market capitalization. In September 2021, TCS recorded a market capitalisation of US$ 200 billion, making it the first Indian IT tech company to do so. On 24 August 2021, Infosys became the fourth Indian company to reach $100 billion in market capitalization.

Largest Indian IT companies in India based on revenue

Top IT services companies in India in 2022 by revenue.

State wise revenue in IT exports

Below is the State wise list of revenue in IT exports as of FY2022.

Major information technology hubs

Bangalore

Bangalore is a global technology hub and is India's biggest tech hub. As of fiscal 2016–17, Bangalore accounted for 38% of total IT exports from India worth $45 billion, employing 10 lakh people directly and 30 lakh indirectly. The city is known as the "Silicon Valley of India". Notable tech parks are Electronic City, ITPL, Bagmane Tech Park, Embassy Golf Links, Manyata Tech Park, Global Village Tech Park, Embassy TechVillage. Apart from these IT companies are also located in several other parts of the city. Notable IT companies of the area include Infosys, Wipro, HCL Technologies, SAP Labs, Accenture, TCS, Oracle, IBM India, Sonata Software, Mindtree, and Intuit India.

Bangalore is also known as the "startup capital of India"; the city is home to 44 percent of all Indian unicorn startup companies as of 2020.

Hyderabad

Hyderabad – known for the HITEC City or Cyberabad – is India's second largest information technology exporter and a major global IT hub, and the largest bioinformatics hub in India. Hyderabad has emerged as the second largest city in the country for software exports pipping competitors Chennai and Pune. Notable tech companies include Microsoft , Amazon, Google, Apple, Salesforce, Capgemini, Accenture, AMD, Deloitte, Intel, Tata Consultancy Services, HCL Technologies, Oracle Corporation, Qualcomm, Dell, Cognizant, Novartis, Pega, J.P Morgan, UBS. As of 2022, the IT exports from Hyderabad was ₹183,569 crore (US$23 billion), the city houses 1500 IT and ITES companies that provide 7,78,121 employment. Notable tech and pharma parks are Nanakramguda Financial District, HITEC City, Genome Valley, and Hyderabad Pharma City. The number of startups in Telangana had increased from 400 in 2016 to 2,000 in 2022. Hyderabad added two companies in unicorn startup list in first two months of 2022. Microsoft, Amazon, Google has their largest campus outside US in Hyderabad.

Chennai

, Chennai is India's third-largest exporter of information technology (IT) after Bangalore and Hyderabad and business process outsourcing (BPO) services. TIDEL Park in Chennai was billed as Asia's largest IT park when it was built. Notable tech parks are International Tech Park, DLF Cybercity SEZ, Mahindra World City, SIPCOT IT Park, Olympia Tech Park, One Indiabulls Park, L&T Estancia IT SEZ, Ramanujan IT City and Chennai one SEZ. City has an expressway called as IT expressways and a preferred location for IT industries. Major software companies such as Tata Consultancy Services, Infosys, Zoho, Capgemini, Amazon, Mindtree, Cognizant, Accenture, UST Global, Sify, BirlaSoft, HCL Technologies and Comcast have their offices set up here, with some of them making Chennai their largest base.

Pune

The Rajiv Gandhi Infotech Park in Hinjawadi is a ₹60,000 crore (US$8.9 billion) project by the Maharashtra Industrial Development Corporation (MIDC). The IT Park encompasses an area of about and is home to over 800 IT companies of all sizes. Besides Hinjawadi, IT companies are also located at Magarpatta, Kharadi, Kalyani Nagar,
Yerawada, Aundh and several other parts of the city. Major IT companies like TCS, Wipro, Infosys, Cognizant, IBM, Accenture, Tech Mahindra, Cybage, Zensar Technologies, Amdocs, Capgemini, Quick heal, Amazon, FIS (Company), HCL Technologies, Barclays, Credit Suisse, UBS, Netcracker Technology, Persistent Systems, KPIT. Harbinger Knowledge Products have offices in Pune. As of 2019, the IT sector employs more than 500,000 people.

Delhi NCR

Delhi NCR is one of the major IT hub in India. Cities in NCR like Gurgaon and Noida have several companies that serves the local and global markets who take help from these IT hubs. Major software companies like Microsoft, Oracle Corporation and Adobe Systems have their presence in Noida.

Kolkata

Kolkata is one of the major IT hub in India. As of 2020, The IT sector employs more than 200,000 people directly.
Major software companies such as Tata Consultancy Services, Capgemini, Wipro, Ericsson, Mindtree, Cognizant, Accenture, ITC Infotech, RS Software, IBM have their offices set up here, with TCS making Kolkata their largest base.

See also

* Electronics and semiconductor manufacturing industry in India
* List of Indian IT companies
* List of publicly listed ITES companies of India
* PARAM
* Supercomputing in India
* Timeline of Indian startup ecosystem

References

Sources

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* Gupta, S. D., Raychaudhuri, A. and Haldar, S. K. (2015) 'Determinants of Exports of Information Technology in India: An Empirical Analysis', South Asia Economic Journal, 16(1), pp. 64–81.
* Dedrick, Jason, and Kenneth L. Kraemer. "Information Technology in India: The Quest for Self-Reliance." Asian Survey, vol. 33, no. 5, University of California Press, 1993, pp. 463–92, .
* Ramesh Subramanian (2006) India and Information Technology: A Historical & Critical Perspective, Journal of Global Information Technology Management, 9:4, 28-46,
* M.D., Pradeep and B.K., Ravindra, Effective Disbursement of Social Security Benefits to the Labour through Information Technology in India (April 15, 2017). International Journal of Advanced Trends in Engineering and Technology (IJATET), Volume I, Issue I, 2016,
* Thomas P.N. (1994) The State and Information Technology in India: Emerging Trends. In: Nagel S.S. (eds) Asian Development and Public Policy. Policy Studies Organization Series. Palgrave Macmillan, London.
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*Krishnan, Rishikesha T., and Ganesh N. Prabhu. "Innovation in the Indian Information Technology Industry: A Study of the Software Product Development Process." Science, Technology and Society 7, no. 1 (March 2002): 91–115.

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Industries in India