The IT & ITES industry in India has offerings that span goods, software products, and software services. The industry is categorized into four broad segments: hardware, software products and engineering services, IT services, and ITeS-BPO. The sector has grown significantly and increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. Exports from the industry have grown from less than 4% of total Indian exports in 1998 to about 25% in 2012.

1. By - Abhijeet Chandak

2. What is it?
Like any other industry, IT & ITES Industry also has business
offerings. May be The only industry to have offerings
spanning across Goods, Software Products and Software
Services.
The goods related here are Electronic goods like Personal
Computer, Servers, Network Devices etc. The commonly
known and used Software products are Operating
Systems, Anti Virus, MS Office, Media players etc. Most of
us are familiar with the Software Services segment of this
industry.
Also, the offerings are both for end consumers directly (B2C) and
Government Companies and Corporate business houses (B2G and
B2B).

3. The Industry is categorized into four broad segments
Hardwar Software Products and
Engineering services
IT Services ITeS – BPO

4. Various Market Players

5.  The sector has increased its contribution to India's GDP from
1.2% in FY1998 to 7.5% in FY2012.
 According to NASSCOM, the IT–BPO sector in India aggregated
revenues of US$100 billion in FY2012, where export and
domestic revenue stood at US$69.1 billion and US$31.7 billion
respectively, growing by over 9%.
 The industry’s share of total Indian exports (merchandise plus
services) increased from less than 4% in FY1998 to about 25%
in FY2012.

9. Legal
1. IT SEZ requirement: IT companies can set up SEZ
with minimum area of 10 hectares and enjoy a host Positive
of tax benefits and fiscal benefits.
2.Contract / Bond requirements: Huge debates
surrounding the bonds under which the employees Negative
are required to work, which is not legally required.
3.IT Act: Indian government is strengthening the IT
act, 2000 to provide a sound legal environment for Positive
companies to operate esp. related to security of data
in transmission and storage, etc.
4. Companies operating in Software Technology Park
(STPI) scheme will continue to get tax-benefit till Mildly +ve
2010.

10.  Look beyond US and Europe – APAC, Middle East and
Far East.
 Local is the new global – Domestic Market
 From Service to Product
 Emerging Trends
o Cloud Computing
o Online Retailing
o Platform BPO
o Increasing focus on People – an integral asset to the Indian IT/ITeS industry
 Inclusive development – the emergence of new
“Bangalores”

11.  IBEF.Org
 PWC’s Newsletter on IT & ITES in India along with CII
 Local is the new global – Domestic Market
 From Service to Product
 Emerging Trends
o Cloud Computing
o Online Retailing
o Platform BPO
o Increasing focus on People – an integral asset to the Indian IT/ITeS industry
 Inclusive development – the emergence of new
“Bangalores”