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Lecturrete Topic 115 - IT industry in India


Information Technology in India is an industry consisting of two major components: IT services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.7% in 2017. According to NASSCOM, the sector aggregated revenues of US$180 billion in 2019,with export revenue standing at US$99 billion and domestic revenue at US$48 billion, growing by over 13%. As of 2020, India's IT workforce accounts for 4.36 million employees. The United States accounts for two-thirds of India's IT services exports.


India's IT Services industry was born in Mumbai in 1967 with the creation of Tata Consultancy Services who in 1977 partnered with Burroughs which began India's export of IT services. 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.

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 Telecommunications 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.Desai (2006) describes the steps taken to relax regulations on linking in 1991

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.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.

Major information technology hubs


Bengaluru is known as the "Silicon Valley of India". Notable tech parks are Electronics City Phase I & II, 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, FusionCharts, Sonata Software, Strand Life Sciences, Mindtree, and Intuit India.


As of 2012, Chennai is India's Largest exporter of information technology (IT) and business process outsourcing (BPO) services.Tidel Park in Chennai was billed as Asia's largest IT park when it was built.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 and Ramanujan IT City. 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, Cognizant Technology Solutions, Accenture, UST Global, BirlaSoft, HCL Technologies have their offices set up here, with some of them making Chennai their largest base.


Amazon Hyderabad campus

Hyderabad – known for the HITEC City or Cyberabad – is a major global IT hub, and the largest bioinformatics hub in India. Hyderabad has emerged as the second largest city in the country for software exports pipping competitors Chennai and Pune. 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. Notable tech and pharma parks are HITEC City, Genome Valley, and Hyderabad Pharma City


Kolkata is the financial and business hub of Eastern India. The metro city has seen a significant rise in IT services. In August 2018, the West Bengal Government has announced that 200 acres of land in Rajarhat Newtown will be used for the development of Bengal Silicon Valley, similar to the California Silicon Valley in San Francisco, USA. The main intention of this project is to create a business-friendly environment for IT companies to set up their business in the city. Major IT Parks include Sector V, DLF 1,2,Gitanjali Park SEZ, Ecospace .


The Rajiv Gandhi Infotech Park in Hinjawadi is a ₹600-billion (US$8.9 billion) project by the Maharashtra Industrial Development Corporation (MIDC). The IT Park encompasses an area of about 2,800 acres (11 km2) and is home to over 800 IT companies of all sizes.Besides Hinjawadi, IT companies are also located at Magarpatta, Kharadi, Yerawada, Aundh and several other parts of the city. As of 2017, the IT sector employs more than 300,000 people.

Delhi NCR

Delhi NCR is one of the major IT hub in India. Cities like Gurugram and Noida have several companies thats serves the local and global markets. 


Bhubaneswar in Odisha is one of the fastest growing IT hubs in India and is also known as "IT hub and Startup hub of Eastern India".According to a 2012 survey, Bhubaneswar has been chosen as the best for conducting IT/ITES business among the tier-2 cities in India. It is the only destination in Eastern India where all 4 major IT giants of India such as Infosys, Wipro, TCS & Tech Mahindra have set up their development centres. It was among the first three cities along with Pune & Bengaluru to receive STPI centres in 1991. Infosys set up it's first offshore development centre in Bhubaneswar outside Karnataka in 1996 .In 2018, National Informatics Centre established its 4th data centre in Bhubaneswar apart from New Delhi, Pune & Hyderabad .

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