India's IT Miracle

 The first software export zone which was known as SEEPZ was established in 1973. Around 80% of the country’s exports were from SEEPZ. The affair between India and IT sector started in 1974 when Burroughs, mainframe manufacturers offered TCS to export programmers for installation of system software for its US clients. Rajiv Gandhi's 'New Computer Policy'(NCP) did some favorable changes in 1984. During 1985-90’s US based companies started to outsource work on low cost and skilled talent pool in India. Due to globalization in 90’s and increasing internet usage (the launch of the public internet in India by VSNL in 1995), the economy of India grew by 6% and this period was considered as the birth of Indian Information technology as the revenues generated by the companies started to rise exponentially. Looking at the future opportunities in India, investments in R&D and infrastructure have increased and India has become a hub for product development by 2000. The software exports of India rose from US$1 million(1975) to US$ 33.3 million(1986) to US$ 6 billion in 1999. 2 phenomenon changed Indian ITES forever, those are -

1. Y2K bug.

2. Accommodation of Euro Currency.




The computer software and hardware sector attracts cumulative FDI inflow worth US$ 44.91 billion between April 2000- March 2020. Revenue of IT & BPM has increased from US$ 67.87 billion(2009) to US$ 191 billion (US$ 147 billion export and US$ 44 billion domestic revenue) in FY20. In FY15, the export revenue is US$ 99 billion and domestic revenue is US$ 34 billion. By 2020, India has approx. 4.36 million IT workforce. Back in 1998, I.T. sector contributed 1.2% of India's GDP that rose to 7.7% by 2020. IT-BPM contributes more than 55% of Global outsourcing market, 19% growth in E-Commerce and shares more than 45% of total Indian export. Top IT companies operating in India are -

1. Tata Consultancy Services - Tata Consultancy Services Limited, initially started as "Tata Computer Systems" was founded in 1968 by division of Tata Sons Limited. Its early contracts included punched card services to sister company TISCO (now Tata Steel). TCS is currently India's largest IT firm with an revenue of US$ 23 billion. In April 2018, TCS achieved US$ 100 billion of market capitalization.

2. Infosys - Infosys was conceived in 1981 in Pune by Narayan Murthy, Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora, all former employees of Patni Computer Systems. Infosys did not have a computer till 1983, because Murthy could not afford to bring an imported option he liked. It took almost two years to get a computer on their own. It was a Data General 32-bit MV8000. Infosys touched US$ 100 million in 1999. It also became the first IT company from India to be listed on NASDAQ.

3. Accenture - Headquartered in Dublin, Ireland Accenture is one of the biggest employer of India.

4. Cognizant - It is an American multinational corporation that provides IT services. On 20 Jan, 1994 Cognizant registered its branch in Chennai, Tamil Nadu, India with the legal name Cognizant Technology Solutions India Private Limited. 

5. Wipro - In 1982, Wipro first entered into IT Products business. Wipro recorded total income of Rs 471,896 crore (US$ 7.32 billion) in FY18.

6. HCL Technologies - It emerged as an independent company in 1991 when HCL entered into the software services business. The company has offices in 44 countries.

7. Tech Mahindra - It provides information technology (IT) and business process outsourcing (BPO) services. A subsidiary of the Mahindra Group. In April 2009 the $14 billion Tech Mahindra, purchased a major stake in the company and in June 2009 the company renamed itself Mahindra Satyam. Mahindra Satyam merged with Tech Mahindra on 24 June 2013.

8. L&T Infotech - IT solutions arm of L&T group. In 2017, NASSCOM ranked LTI as the sixth-largest Indian IT services company in terms of export revenues.

Bangalore alone accounts for more than 35% of all IT companies present in India and contains close to 5,000 companies, making it India’s largest IT contributor. Hyderabad has close to 3000 companies operate from the city.


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