IT SECTOR

BY
HARMEET SEHGAL
Introduction
 Information Technology (IT) industry in India is one of the fastest
growing industries

 IT has a major role in strengthening the economic and

technical foundations of India

 The computer systems design and related services industry is among

the economy's largest

 IT industry in India comprises of software industry and information

technology enabled services (ITES), which also includes business
process outsourcing (BPO) industry

 Fastest sources of employment growth

The Indian IT Industry
 The industry was begun by Bombay-based conglomerates which
entered the business by supplying programmers to global IT firms
located overseas.

 India is considered as a pioneer in software development and a

favorite destination for IT-enabled services. 

 The Information Technology (IT) sector in India holds the distinction

of advancing
the country into the new-age economy

 The sector can be classified into 4 broad categories - IT Services,

Engineering, Services, ITES-BPO Services, E Business
CONT…
 Software & Services contribute over 7.5 % of the overall GDP
growth of India

 IT Exports are accounting for 35% of the total exports from India

 Potential for 2.2 million jobs in IT in 2008

 IT industry is attracting Foreign Direct Investment (FDI) of U.S. $ 4-

5 billion

 Market capitalization of IT shares is around U.S. $ 225 billion

IT: Success  Factors
 Increasing number of skilled professionals in IT.

 The demographic factor.

 The vast academic infrastructure of India.

 Competitive cost
Findings
  The Indian software and services exports has reached US$ 49.7 billion in 2009-10 as
compared to US$ 47.1 billion in 2008-09, registering an increase of 5.5 per cent in
dollar terms

 The IT services exports have grown from US$ 25.8 billion in 2008-09 to US$ 27.3
billion in 2009-10, showing a growth of 5.8 per cent

 The Indian information technology (IT) market is expected to grow at around 15.5 per
cent in 2010, on the back of growing investor confidence and favourable initiatives
taken by the government.

 The data centre services market in the country is forecast to grow at a compound
annual growth rate (CAGR) of 22.7 per cent between 2009 and 2011

  The Indian IT-BPO revenues may reach US$ 225 billion in 2020.
Cont…
 Indian IT-BPO sector grew by 12 per cent in FY 2009 to reach US$ 71.7
billion in aggregate revenue (including hardware). Of this, the software and
services segment accounted for US$ 59.6 billion.

 IT-BPO exports (including hardware exports) grew by 16 per cent from US$
40.9 billion in FY 2007-08 to US$ 47.3 billion in FY 2008-09

 Domestic IT market (including hardware) reached US$ 24.3 billion in FY 2008-

09 as against US$ 23.1 billion in FY 2007-08, a growth of 5.3 per cent

 India Inc's demand for IT services and products has bolstered growth in the
domestic sector with deal sizes going up remarkably and contracts worth US$
50 million-US$ 100 million up 
Government Initiatives
 The Govt. has provided incentives including tax holiday up
to 2010 and
competitive duty structures.

 The Govt. is trying to reduce the international

communication cost.

 It is providing infrastructure support through organizations

such as software
technology parks.
THANK YOU