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Information Technology

The Information Technology (IT) has been one of the key driving forces fuelling India's economic growth.

Availability of skilled talent has been a major reason behind India's emergence as global outsourcing hub.

India has been competitive location globally and that is what has led to the growth of the industry.

Industry Performance

The contribution of IT sector has risen to 7.5% in FY 2012 from 1.2% in FY 1998.

Software Services segment in India presently has an estimated Market size of USD 17.0 billion during FY 2012.

IT Hardware market presently has a Market size of USD 13.0 billion during FY 2012.

NASSCOM expects the country's Information Technology (IT) services sector to grow at a rate of 13-14% in the current financial year and expected to touch $225 billion mark (Rs 13.22 lakh crore) by 2020. The sector had been growing at a Compound Annual Growth Rate of 12-13%.

At present, BFSI, Hi-tech, Telecom and Manufacturing contribute to around 80% of the IT services business in India, while Utilities, Transport, Healthcare and Media & Entertainment have opened new avenues for the industry.

The increase in IT investments by Indian small and medium enterprises indicate constant progress in business maturity levels. Investments from the mid-market segment are expected to grow at a significant rate of 17.2%. Government initiatives and public private partnerships are bridging Infrastructure and Research & Development (R&D) gaps that inhibited SME growth.

An interesting phenomenon of change has been witnessed in the Indian IT industry. 43 new tier II/III cities are emerging as IT delivery location. This could reduce pressure on leading locations.