Communications - Information Technology

The software and services industry continues to play a dominant role in the overall growth of the Indian industry. The Indian IT Enabled Services - Business Process Outsourcing (ITES-BPO) sector has emerged as a key driver of growth for the Indian software and services industry. The ITES-BPO industry is estimated to have grown by about 54 per cent with export revenue of $ 3.6 billion during 2003-04.

India has become one of the most preferred destinations for sourcing software and IT enabled services. In comparison to other low cost locations, India ranks high in several critical parameters, such as, level of government support, quality of the labour pool, English language skills, cost advantage, project management skills, entrepreneurial culture, strong customer relationships and exposure to new technologies. India's strength has been enhanced by the industry's strong focus on quality software and processes.

Indian IT software and services industry is expected to account for about 2.64 per cent of India's GDP and 21.3 per cent of exports during 2003-04 and is projected to grow to 7 per cent of India's GDP and 35 per cent of exports by 2008.

The number of professionals employed in India by IT and ITES sectors is estimated at 813,500 as of March 2004. This work force comprises 260,000 professionals in the IT software and services export industry; nearly 245,500 in ITES-BPO sector; 28,000 in the domestic software market and over 280,000 in user organisations.

Information Technology