Information

technology in India

Information Technology in India is a vast industry which comprises information technology

services, consulting, and outsourcing.[1] The IT industry accounted for 8% of India's GDP in
2020.[2][3] The IT and BPM industry's revenue is estimated at US$194 billion in FY 2021, an
increase of 2.3% YoY.[2] The domestic revenue of the IT industry is estimated at US$45 billion
and export revenue is estimated at US$150 billion in FY 2021.[2] The IT–BPM sector overall
employs 4.5 million people as of March 2021.[4] The Indian IT–BPM industry has the highest
employee attrition rate.[5][6][7][8][9] In recent years the industry has been witnessing skyrocketing
resignations cutting across hierarchy.[5][7][9] As a global outsourcing hub, the Indian IT industry is
infamous of exploiting cheap labour.[10][11][12] As IT–BPM sector evolves, many are concerned
that artificial intelligence (AI) will drive significant automation and destroy jobs in the coming
years.[13][14] The United States accounts for two-thirds of India's IT services exports.[15]

History

India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata
Consultancy Services[16] who in 1977 partnered with Burroughs which began India's export of IT
services.[17] The first software export zone, SEEPZ – the precursor to the modern-day IT park –
was established in Mumbai in 1973. More than 80 percent of the country's software exports
were from SEEPZ in the 1980s.[18]
 Within 90 days of its establishment, the Task Force produced an
extensive background report on the state of technology in India and an
IT Action Plan with 108 recommendations. The Task Force could act
quickly because it built upon the experience and frustrations of state
governments, central government agencies, universities, and the
software industry. Much of what it proposed was also consistent with
the thinking and recommendations of international bodies like the
World Trade Organization (WTO), International Telecommunication
Union (ITU), and World Bank. In addition, the Task Force incorporated
the experiences of Singapore and other nations, which implemented
similar programs. It was less a task of invention than of sparking action
on a consensus that had already evolved within the networking
community and government.

TIDEL Park in Chennai was the largest IT park in Asia when it was opened in 1999.

Regulated VSAT links became visible in 1994.[19] Desai (2006) describes the steps taken to relax
regulations on linking in 1991:

In 1991 the Department of Electronics broke this impasse, creating a

corporation called Software Technology Parks of India (STPI) that,
being owned by the government, could provide VSAT communications
without breaching its monopoly. STPI set up software technology parks
in different cities, each of which provided satellite links to be used by
 firms; the local link was a wireless radio link. In 1993 the government
began to allow individual companies their own dedicated links, which
allowed work done in India to be transmitted abroad directly. Indian
firms soon convinced their American customers that a satellite link was
as reliable as a team of programmers working in the clients' office.

A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint
research and development. On 25 June 2002, India and the European Union agreed to bilateral
cooperation in the field of science and technology. From 2017, India holds an Associate Member
State status at CERN, while a joint India-EU Software Education and Development Center will be
located in Bangalore.[20]

Contemporary situation

In the contemporary world economy, India is the largest exporter of IT. Exports dominate the
Indian IT industry and constitute about 79% of the industry's total revenue. However, the
domestic market is also significant, with robust revenue growth.[3] The industry's share of total
Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25%
in FY2012. The technologically-inclined services sector in India accounts for 40% of the
country's GDP and 30% of export earnings as of 2006, while employing only 25% of its
workforce, according to Sharma (2006). According to Gartner, the "Top Five Indian IT Services
Providers" are Tata Consultancy Services, Infosys, Wipro, Tech Mahindra, and HCL
Technologies.[21] In 2022, companies within the sector faced significant employee attrition and
intense competition in hirings.[22]

Major information technology hubs

Bangalore
Infosys Media Centre in Bangalore, India.

Bangalore is a global technology hub and is Indias biggest tec hub.[23] As of fiscal 2016–17,
Bangalore accounted for 38% of total IT exports from India worth $45 billion, employing 10 lakh
people directly and 30 lakh indirectly.[24] The city is known as the "Silicon Valley of India".[25][26]
Notable tech parks are Electronic City, ITPL, Bagmane Tech Park, Embassy Golf Links, Manyata
Tech Park, Global Village Tech Park, Embassy TechVillage. Apart from these IT companies are
also located in several other parts of the city. Notable IT companies of the area include Infosys,
Wipro, HCL Technologies, SAP Labs, Accenture, TCS, Oracle, IBM India, Sonata Software,
Mindtree, and Intuit India.[27]

Bangalore is also known as the "startup capital of India"; the city is home to 44 percent of all
Indian unicorn startup companies as of 2020.[28]

Hyderabad

Amazon Hyderabad campus

Hyderabad – known for the HITEC City or Cyberabad – is India's second largest information
technology exporter and a major global IT hub, and the largest bioinformatics hub in India.[29][30]
Hyderabad has emerged as the second largest city in the country for software exports pipping
competitors Chennai and Pune.[31][32][33] Notable tech companies include Accenture, Amazon,
AMD, Deloitte, Apple, Intel, Tata Consultancy Services, Microsoft, HCL Technologies, Oracle
Corporation, Google, Qualcomm, Dell, Cognizant, Novartis, Pega, J.P Morgan, UBS. As of 2020,
the IT exports from Hyderabad was ₹128,807 crore (US$15 billion), the city houses 1500 IT and
ITES companies that provide 582,126 employment.[34][35][36][37] Notable tech and pharma parks
are HITEC City, Genome Valley, and Hyderabad Pharma City. Hyderabad added two companies in
unicorn startup list in first two months of 2022.[38]

Chennai

Zoho headquarters in Chennai

TCS Signature Tower and Butterfly Campus in Chennai, India.

As of 2018, Chennai is India's third-largest exporter of information technology (IT) after
Bangalore and Hyderabad and business process outsourcing (BPO) services.[39][40] TIDEL Park in
Chennai was billed as Asia's largest IT park when it was built.[41][42] Notable tech parks are
International Tech Park, DLF Cybercity SEZ, Mahindra World City, SIPCOT IT Park, Olympia Tech
Park, One Indiabulls Park, L&T Estancia IT SEZ, Ramanujan IT City and Chennai one SEZ. City has
an expressway called as IT expressways and a preferred location for IT industries. Major
software companies such as Tata Consultancy Services, Infosys, Zoho, Capgemini, Amazon,
Mindtree, Cognizant, Accenture, UST Global, BirlaSoft, HCL Technologies and Comcast have
their offices set up here, with some of them making Chennai their largest base.[40]

Pune

The Rajiv Gandhi Infotech Park in Hinjawadi is a ₹60,000 crore (US$8.9 billion) project by the
Maharashtra Industrial Development Corporation (MIDC).[43][44] The IT Park encompasses an
area of about 2,800 acres (11 km2) and is home to over 800 IT companies of all sizes.[45]
Besides Hinjawadi, IT companies are also located at Magarpatta, Kharadi, Kalyani Nagar,
Yerawada, Aundh and several other parts of the city. Major IT companies like TCS, Wipro,
Infosys, Cognizant, Tech mahindra, Cybage, Zensar technologies, Amdocs, Capegemini, Google ,
Sungard, HCL Technologies, Persistent technology etc. have offices in Pune. As of 2019, the IT
sector employs more than 500,000 people.[45][46]

Delhi NCR

Delhi NCR is one of the major IT hub in India. Cities in NCR like Gurgaon and Noida have several
companies that serves the local and global markets who take help from these IT hubs.[47]

Kolkata

Kolkata is one of the major IT hub in India. As of 2020, The IT sector employs more than 200,000
people directly. Major software companies such as Tata Consultancy Services, Infosys,
Capgemini, Wipro, Ericsson, Mindtree, Cognizant, Accenture, ITC Infotech, RS Software have their
offices set up here, with TCS making Kolkata their largest base.
[48][49]

See also
 Electronics and semiconductor manufacturing industry in India

List of Indian IT companies

List of publicly listed ITES companies of India

PARAM

Supercomputing in India

Timeline of Indian startup ecosystem

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