+91.79.6512 2900 |   info@witsnskills.com |  Become a Partner

Tuesday, 17 June 2014 00:00

IT and ITeS

Written by
Rate this item
(2 votes)
Information Technology (IT) has made possible information access at gigabit speeds. It has created a level playing field among nations and created has a positive impact on the lives of millions. Today, a country’s IT potential is paramount for its march towards global competitiveness, healthy gross domestic product (GDP) and meeting up the energy and environmental challenges.

The Indian IT and Information Technology enabled Services (ITeS) sectors go hand-in-hand in every aspect. The industry has not only transformed India’s image on the global platform, but also fuelled economic growth by energising the higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and, hence, has contributed significantly to social transformation in the country.

India is one of the fastest-growing IT services markets in the world. It is also the world’s largest sourcing destination, accounting for approximately 52 per cent of the US$ 124–130 billion market. The country’s cost competitiveness in providing IT services continues to be its USP in the global sourcing market.

India has the potential to build a US$ 100 billion software product industry by 2025, according to Indian Software Product Industry Roundtable (iSPIRT). The software products market in India, which includes accounting software and cloud computing-based telephony services, is expected to grow at 14 per cent in 2014.

The Department of Electronics and Information Technology is coordinating strategic activities, promoting skill development programmes, enhancing infrastructure capabilities and supporting research and development (R&D) for India’s leadership position in IT and ITeS.

Market Size

Indian IT and ITeS industry is divided into four major segments – IT services, business process management (BPM), software products and engineering services, and hardware. The IT services sector accounted for the largest share of the IT and ITeS industry, with a total market size of US$ 56.3 billion during FY13, followed by BPM sector (US$ 20.9 billion), and software products and engineering services (US$ 17.9 billion); the market size for hardware was US$ 13.3 billion during FY12.

The Indian IT-BPM industry is expected to add revenues of US$ 13–14 billion to the existing revenues by FY15, according to National Association of Software and Services Companies (NASSCOM).

The industry grew at a compound annual growth rate (CAGR) of 13.1 per cent during FY08–13.Total exports from the IT-BPM sector (excluding hardware) were estimated at US$ 76 billion during FY13, Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports (excluding hardware) in FY13. BPM accounted for 23.5 per cent of total IT exports during the same fiscal. The IT outsourcing sector is expected to see exports growing by 13–15 per cent during FY15.

The technology industry of India will have a US$ 37 billion of CMO opportunity by 2020, according to a report titled 'Marketing, Disrupted: Opportunities for the Indian technology industry' by NASSCOM and SapientNitro.


Indian IT's core competencies and strengths have placed it on the international canvas, attracting investments from major countries.

According to data released by the Department of Industrial Policy and Promotion (DIPP), the computer software and hardware sector attracted foreign direct investment (FDI) worth Rs 59,381.64 crore (US$ 9.89 billion) between April 2000 and February 2014.

Some of the major investments in Indian IT and ITeS sector are as follows:

  • Tata Consultancy Services (TCS) plans to merge its two units in Japan with Mitsubishi Corp’s IT subsidiary to create a joint venture (JV) company with a revenue base of US$ 600 million in the world’s second-largest market for software services.
  • Private equity (PE) firm TPG Growth and India's Smile Group will jointly invest US$ 100 million to help internet and e-commerce companies build and scale their businesses across the Asia–Pacific region and West Asia.
  • Synechron plans to invest US$ 30–35 million on the expansion of its Hyderabad and Bengaluru facilities. “We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients,” said Mr Faisal Husain, Founder and Global CEO, Synechron.
  • Bharti Airtel, India's largest telecom operator, has renewed its technology outsourcing contract with software major IBM for a period of five years.
  • Infosys has partnered with telecom company Orange to provide Internet TV to its customers. Infosys will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers.

Government Initiatives

The Government of India played a key role with public funding of a large, well trained pool of engineers and management personnel who could forge the Indian IT industry.

The Central Government and the respective State Governments are expected to collectively spend US$ 6.4 billion on IT products and services in 2014, an increase of 4.3 per cent over 2013, according to a study by Gartner.

Some of the major initiatives taken by the Government to promote IT and ITeS sector in India are as follows:

  • The Government of Bihar has unveiled 20 km free Wi-Fi zone in Patna, the longest across the planet, making a strong impression on the world's infotech map.
  • The Government of India has given an in-principle approval for setting up of the first electronic system design and manufacturing (ESDM) cluster development in Electronics City, Bengaluru. The ESDM project will come up on a 1.16 acre of land at an investment of approximately Rs 85 crore (US$ 14.16 million).
  • More than 20 small and medium enterprises (SMEs) in the IT sector have recently received land allotment letters from the Government of Punjab to set up their units with an investment of Rs 500 crore (US$ 83.24 million).
  • The Government of India is planning to announce a national policy on cloud computing, as per Mr Kapil Sibal, Minister of Communications and Information Technology.
  • The Governments of Maharashtra and Tamil Nadu are in talks with NASSCOM to set up ‘start-up warehouses’ for incubation of start-ups. The centres are expected to come up in Mumbai and Chennai and are likely to be operational by December 2014.

Road Ahead

India is the most preferred location for engineering offshoring, according to a customer poll conducted by Booz and Co. Companies are now offshoring complete product responsibility. Increased focus on R&D by IT firms in India has resulted in rising number of patents filed by them.

India’s IT sector is gradually moving from linear models (rising headcount to increase revenue) to non-linear ones.

In line with this, IT companies in the country are focusing on new models such as platform-based BPM services and creation of intellectual property.

Tier II and III cities are increasingly gaining traction among IT companies aiming to establish business in India.

Cheap labour, affordable real estate, favourable government regulations, tax breaks and special economic zone (SEZ) schemes are facilitating their emergence as new IT destinations.

Indian insurance companies also plan to spend Rs 12,100 crore (US$ 2.01 billion) on IT products and services in 2014, a 12 per cent rise over 2013, according to Gartner. This forecast includes spending by insurers on internal IT (including personnel), software, hardware, external IT services and telecommunications.

Additional Info

Read 2949 times Last modified on Tuesday, 26 January 2016 12:26
Chandramauli Yodha

A Dynamic Business Development Professional with over ten years of experience in business development, sales and marketing, customer relations and library management.


1 comment

  • Comment Link Brett Cravaliat Wednesday, 25 June 2014 09:00 posted by Brett Cravaliat

    Thankfulness to my father who stated to me concerning this web site, this
    blog is actually awesome.

Login to post comments

More From Our Blog


A - Z of Compensation...

Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation...


Top Ten Qualities of an...

An Excellent Manager taps into talents and resources in order to support and bring out the Best...


The Backbone - Construction World

In the current scenario, where every sector is reeling under some sort of slowdown, business houses are...


Questions on Competencies - Construction...

With the construction sector getting increasingly professional, job interviews will have to take into account the presence...


Why Employers are taking longer...

Welcome to the newer, slower and more guarded job market. Employers have decelerated recruitment and hiring processes,...


Retail Sector

The retail sector is one of the fastest growing in India over the last few years. The...



The engineering sector is the largest of the industrial sectors in India and can be broadly categorised...


IT and ITeS

Information Technology (IT) has made possible information access at gigabit speeds. It has created a level playing...


Construction Real Estate

The Indian construction market is expected to be the world’s third largest by 2020. It is currently...


Manufacturing Sector

India’s manufacturing industry could touch US$ 1 trillion by 2025. This is according to a study by...


Education Training Sector

Education is the key to the task of nation-building. It is also well-accepted that providing the right...


Why should any business consider...

Why must companies use recruitment services? Companies that do use recruitment services find great employees without having...


HR consulting services offers your...

Recruitment services really are an excellent means to fix improving your company's potential. Business fanatics will know...


Human Resource Management Consultant

For any company to be effective it requires people with the right training and skills in the...


Choosing a good HR Consulting...

For addressing HR management choices and tasks, you might like to engage the services of the Hr...


Training Development Human Resources

The recruitment of assets holds the key section of functioning in the human assets technique of any...


Key Success factor of your...

HR Management is one kind of the most significant facets of controlling a company. Be it a...


Job Oriented Training Programmes

Whether it's for new hire orientation, abilities enhancement, and/or personal development, there's a necessity for HR training...


HR Mistakes which most Companies...

It’s simple to ignore the human assets side of the business when situations are flowing easily. In...


Have you hired the wrong...

You have undergone the extended procedure for recruitment and also you find out, lower the line, maybe...


Preparing Yourself for the BIG...

Good preparation is essential - not so you are able to answer individual’s tricky questions but additionally...


Is your CV Job Portal...

Regardless of whether you love or hate them they are not going anywhere soon and therefore are...


How to be a Great...

Being a good boss can be a difficult task, but have you ever wondered how to be...


HR Agency Benefits

Engaging Recruitment firms (../en/employers) can do a lot for any aspiring company. Perhaps your organization is looking...


Why Using a Recruitment Firm...

Recruitment is a time-consuming process. You spend hours of writing, designing advertisement, and spend thousands of money...


The MSME Challenge

The Indian economy has been growing over the past few years and business sentiment is also positive....


Get Noticed!, Upload a video...

In today's saturated job market, competition is tough with numbers of potential employees jostling for the exact...



https://t.co/1wLZypcLba Catia CNC Programmer (CAM Progammer) [Ahmedabad/ Sanad] CAM ...
https://t.co/3DkiI79Iea Manager Recruitment [Ahmedabad] Recruiters looking for a new job? - ...
https://t.co/fFZXOuyXfL Inter CA / CA [Navi Mumbai] Inter CA / CA in Navi Mumbai looking for ...
https://t.co/0caRMZUB46 ITI Fitter [Sanand] [JPC000360] ITI Fitter required f...
https://t.co/eAZVg055QS CCTV Field Engineer [Rajkot] CCTV Technicians looking for a new job ...
https://t.co/VNTbzlBTqc ITI Fitter [Sanand] I'm hiring ITI Fitters for a leading Chemical ...
https://t.co/kD9t1UaqCS Manager - Recruitments [JPC000322] We are recruiting ...
Follow Wits N Skills on Twitter

Work & Career

Feed not found.