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IT Trendz in India

The Information Technology — Business Process Outsourcing (IT-BP0) Industry in India has today become a growth engine for the economy, contributing substantially to increase in the GDP, employment and exports. This sector has continued to increase its contribution to India's economic development. The key factors driving the sector's strong performance are: more diversified geographic market exposure, continued expansion of the service offerings portfolio and steady growth in scale by Indian—origin service providers.

The size of the software and services is estimated to grow to US $ 60 billion (Rs.273,530 crore) during 2008-09, a growth of 15.4 per cent in dollar terms and 29.4 per cent in rupee terms against US $ 52 billion (Rs.2 I 1,410 crore) during 2007-08. The Indian software and services exports including ITES-BP0 is expected to touch US $ 47 billion (Rs.216,300 crore) in 2008-09, as compared to US $ 40.4 billion (Rs. 164,400 crore) in fiscal year 2007-08, an increase of 16.3 per cent in dollar terms and 31.6 per cent in rupee terms. The Software & services revenue have shown healthy growth in 2008-09 in Rupee terms because rupee appreciated by over 11 per cent in 2007-08 but depreciated by over 22 per cent in 2008-09, against the US Dollar.

BPO) is the fastest growing segment within the Indian 1T-B PO sector with a five year CAGR of 29 per cent over the past ?ve years. 13130 exports from India grew from US $ 3.1 billion in 2003-04 to over US $ 10.9 billion in 2007-08. Over the same period, direct employment grew from 216,000 in 2003-04 to 700,000 in 2007-08. Despite the economic slowdown, this segment is estimated to grow at 17,4 per cent, and reach export revenues of US $ 12.8 billion in 2008-09, employing over 790,000 professionals.

Banking, Financial Services and Insurance (BFS1), High Technology and Telecom continued to account for more than 60% of the Indian 1T-BPO exports. Healthcare industry is likely to witness increased IT investments due to increased focus on public health, making healthcare and insurance affordable to all. Other industries that will see growth include telecom, retail and utilities, etc.

While US & UK remained the largest export markets (accounting for about 60 per cent and 19 percent respectively, in 2007-08), the industry is steadily increasing its exposure to other geographies. Exports to Continental Europe in particular have witnessed steady growth. Over 600 Multinational companies are known to be sourcing product development and engineering services from their centres in India. The growing nature of responsibilities and ownership assumed by these India—based resources are helping India evolve into a strategic hub for R & D.
Though the 1T-BPO sector is export driven, the domestic market is also significant. The revenue from the domestic IT market (excluding hardware) is expected to grow to about US $ 12.5 billion in the year 2008-09 as compared to US $ 11.7 billion in 2007-08 an anticipated growth of about 6.8 per cent in dollar terms. BP° demand in the domestic market has witnessed noticeable growth over the past few years. It is expected to reach US $ 1.9 billion in 2008-09 as compared to US $ 1.6 billion in 2007-08.

The industry has enhanced India's credibility as a business destination by creating a fundamentally new model of global 24X7 service delivery, forging relationships with 75 per cent of the fortune 500 companies, generating immense savings for customers (savings from global sourcing for customers amounted to an estimated US $ 20 billion to US $ 25 billion in 2008) and promoting a focus on quality (65 per cent of all Capability Maturity Model (CM M) Level 5 firms are based in India). In addition, the industry has fostered the emergence of a large number of first generation entrepreneurs.


The total number of IT and ITES-BP0 professionals employed in India has grown from 284,000 in 1999-2000 to 2.01 million in 2007-08. The total IT Software and Services employment is expected to reach 2.23 million mark in 2008-09 (excluding employment in Hardware sector), a growth of 10.9 percent YoY. The indirect employment attributed by the sector is estimated to about 8.0 million in year 2008-09.


The industry has also set a precedent for talent practices in India. It has created career opportunities for the youth, provided global exposure, and offered extensive training and development. Furthermore, the industry has been a front - runner in diversity at the workplace (over 30 per cent of employees are women; over 60 per cent of industry players employ differently abled people).


The industry's contribution to the national GDP is estimated to increase from 5.5 per cent in 2007-08 to 5.8 percent in



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