The Growth Story Of IT Sector
India is a preferred destination for companies looking to offshore
their IT and back-office functions.
It also retains its low-cost advantage and is a financially attractive
location when viewed in combination with the business
environment it offers and the availability of skilled people.
The country’s domestic market for business process outsourcing
(BPO) is projected to grow over 23 per cent to touch US$ 1.4
billion in 2011, says global research group Gartner.
In 2010, the domestic BPO market was worth US$ 1.1 billion. The
firm predicts that the domestic BPO market would reach US$ 1.69
billion in 2012 and increase to US$ 2.47 billion by 2014.
• With the first quarter of the new fiscal 2011-12 offering positive
business outlook, hiring sentiments for sectors like IT, ITeS and
telecom have risen by over 20 per cent, says a study by TeamLease
Services Pvt. Ltd.
• As per the Employment Outlook Report for the period April-June
2011, released by TeamLease Services Pvt. Ltd., hiring intent from
IT and ITeS was the highest in cities like New Delhi, Mumbai,
Hyderabad and Pune.
• India's top technology firms like TCS, Infosys, Wipro and HCL are
readying plans to gain a bigger share of their largest market, US, by
aggressively chasing contracts being served by multinational rivals.
• Analysts expect the top IT firms to grow between 23-27 per cent in
the FY2012 on the back of more number of discretionary projects,
improved pricing, and robust business volumes.
• Between April 2000 and February 2011, the computer
software and hardware sector received cumulative foreign
direct investment (FDI) of US$ 10,705 million, according to
the Department of Industrial Policy and Promotion.
• The total investments of EMC Corporation, a leading global
player of information infrastructure solutions in India, will
touch US$ 2 billion (over US$ 2.01 billion) by 2014.
• Russian IT security software provider, Kaspersky Lab, will
be investing US$ 2 million in its India operations at
Hyderabad during 2011.
• On the back of 40 per cent revenue growth, Cognizant will
invest more than US$ 500 million till 2014 to expand its
campuses to add over 8 million square feet to house over
• It will create additional software development and training
facilities in regions designated as special economic zones
in Chennai, Pune, Coimbatore and Kolkata.
• In order to integrate the learning experience for the
students, Globsyn Business School, would launch an online
platform, e-Globsyn, by July 2011 that would work as a
virtual classroom environment for its students, as well as
facilitate them with other amenities.
• Government sector is a key catalyst for increased IT adoption- through
sectors reforms that encourage IT acceptance, National
eGovernanceProgrammes (NeGP) , and the Unique Identification
Development Authority of India (UIDAI) programme that creates large
scale IT infrastructure and promotes corporate participation.
• Certain crucial steps taken by the Indian government to propel the sector
– Constitution of the Technical Advisory Group for Unique Projects
(TAGUP) under the chairmanship of Nandan Nilekani. The Group
would develop IT infrastructure in five key areas, which includes the
New Pension System (NPS) and the Goods and Services Tax
• Setting up the National Taskforce on Information Technology and
Software Development with the objective of framing a long term
National IT Policy for the country.
• Enactment of the Information Technology Act, which
provides a legal framework to facilitate electronic
commerce and electronic transactions.
• Plans to formulate Information Technology
Investment Regions (ITIRs). These regions would be
endowed with excellent infrastructure and would
reap the benefits of co-sitting, networking and
greater efficiency through use of common
infrastructure and support services.
• Highly skilled human resource
• Low wage structure
• Quality of work
• Initiatives taken by the Government (setting up Hi-Tech Parks
and implementation of e-governance projects)
• Many global players have set-up operations in India like
Microsoft, Oracle, Adobe, etc.
• Following Quality Standards such as ISO 9000, SEI CMM etc.
• English-speaking professionals
• Cost competitiveness
• Quality telecommunications infrastructure
• Indian time zone (24 x 7 services to the global customers).
Time difference between India and America is approximately
12 hours, which is beneficial for outsourcing of work.
• Absence of practical knowledge
• Dearth of suitable candidates
• Less Research and Development
• Contribution of IT sector to India 's GDP is still rather small.
• Employee salaries in IT sector are increasing tremendously.
• Low wages benefit will soon come to an end.
• High quality IT education market
• Increasing number of working age people
• India 's well developed soft infrastructure
• Upcoming International Players in the market
• Lack of data security systems
• Countries like China and Philippines with
qualified workforce making efforts to overcome
the English language barrier
• IT development concentrated in a few cities only
Tata Consultancy Services (Rank 1)
according to a study by CyberMedia's Dataquest Research.
Revenue FY11: Rs 33,112 crore
Revenue FY10: Rs 26,576 crore
Growth FY11: 25%
TCS is the largest provider of
information technology services in
Asia and second largest provider
of business process outsourcing
services in India.
Headquartered in Mumbai, TCS
has over 198,500 employees.
Infosys Technologies (Rank 2)
• Infosys Technologies (Rank 2)
Revenue FY11: Rs 25,997 crore
Revenue FY10: Rs 21,355 crore
Growth FY11: 22%
• Infosys is the second largest IT
company in India with 133,560
employees as of March 2011.
• Infosys is ranked 28th globally in
the list of IT services providing
• It has offices in 33 countries and
development centres in India,
China, Australia, UK, Canada,
Brazil and Japan.
Wipro (Rank 3)
• Revenue FY11: Rs 24,899 crore
(Rs 248.99 billion)
Revenue FY10: Rs 21,949 crore
(Rs 219.49 billion)
Growth FY11: 13%
• Wipro is the third largest IT
services company in India and
employs more than 122,385
people worldwide as of March
• Wipro is ranked 31 globally in
2011 in the list of IT service
providers. The company does
business in information
technology, consumer care,
lighting, engineering and
HCL Technologies (Rank 7)
• Revenue FY11: Rs 14,111
crore (Rs 141.11 billion)
Revenue FY10: Rs 10,983
crore (Rs 109.83 billion)
Growth FY11: 28%
• Headquartered in Noida,
HCL Technologies is the IT
services arm of HCL
Enterprise, a $5.5 billion IT
• HCL Technologies is fifth
largest IT company in India
and is ranked 48 in the global
list of IT services providers.