IT Sector Trends in India
The Indian information technology sector has been instrumental in driving the nation's economy onto the rapid growth curve. According to the Nasscom-Deloitte study, the IT/ITES industry's contribution to the country's GDP has increased to a share of 5.2 per cent in 2007, as against 1.2 per cent in 1998.
Further, the IT and BPO industries are poised to clock revenues worth US$ 64 billion by the end of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40 billion and the domestic market estimated to clock over US$ 23 billion, according to a study. Simultaneously, the Indian IT services market is estimated to remain ...view middle of the document...
Another study conducted by Nasscom jointly with the Everest consulting firm reports the Indian outsourcing sector logged a 35 percent annual growth over the last five years with annual revenues touching US$ 11 billion, with the bulk coming from exports. India has ousted China as a contender for offshore services and tops the list of 30 countries on criteria’s such as language, government support, labour pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy.
No wonder, twenty-nine India-based companies have been listed among the best 100 IT service providers in a new survey carried out with a view to assist business heads of major outsourcers identify reliable, innovative and tech savvy partners.
Multinationals in India
Information technology has been a promising sector for India, generating revenues both for the domestic as well as the global market. India's IT potential has attracted multinationals to grab a share of the pie and cash in on the IT boom. India offers a market with very high returns for multinationals flocking to invest in their India units. Also, the increase in purchasing power and the rapid business expansion of the small and medium enterprises (SMEs) holds promise for global information technology (IT) giants who look at a 100 per cent year-on-year growth in their small and medium businesses (SMBs) market in India.
• Cap Gemini, Europe's largest consulting and computer services firm is gradually moving its internal support services to India.
• After sourcing IT applications from some IT firms last year Wal-Mart will now expand its existing operations given India's impressive IT capability to cover more firms and augment its work in the United States.
• Intel –the globally renowned chip maker is looking to invest more than US$ 1 billion in India over the next three years in partnership with Indian and foreign hardware firms to prepare light weight personal computers.
• Cisco posted over 100 per cent year-on-year growth in its SME business in India.
• Oracle is expecting over 100 per cent growth in India for its CRM business on the back of increased technology awareness and need for cost-effective customer servicing.
• Yahoo! Inc and Tata Sons subsidiary firm Computational Research Laboratories (CRL) have entered into a joint agreement to make available-EKA, a supercomputer (the fourth fastest) in the world for cloud computing research in India.
• Dell India's witnessed 80 per cent sales over last year with revenues to the tune of US$ 700 million.
• World's leading chip designer firm ARM is expanding its India design centre to make it the largest outside Britain.
• IT biggies like Microsoft, IBM, Cisco, Oracle and a host of other IT entities are working overtime to tap the smaller and medium businesses.
India's domestic market has also become a...