The Information Technology (IT) and information technology enabled services industry has been one of the key driving forces fueling India’s growth. Information and technology plays a major role, touches peoples life day after day. Being a knowledge based industry, IT sector utilizes skilled labor forces. The IT sector opens up a lot of job opportunities as well. They also serves many other sectors like business, education, health care etc… Information Technology and the utilization of the internet has massively changed how peoples do things in their daily life. This has enormously improved things in some respect, as everything has become a lot easier and quicker, but it had left people out of touch with the reality.
Major services
India has obtained an identity as a knowledge economy due to its IT sector. The IT industry has four major components: business process outsourcing (BPO), IT services, engineering services and R&D, and software products. The growth in the services sector in India has been led by the IT sector which has become an augmentation for the economy, contributing substantially to increases in the GDP, employment, and exports.
In the IT industry, services are delivered according to business or enterprise requirements. Services span from fundamental Internet connectivity to enterprise application (EA) software. Technology service providers include application service providers (ASP), Internet service providers (ISP), cloud providers and developers.
Technology services include:
- Software development, integration and maintenance
- Hardware
- Networking integration, management and maintenance
- Information security (IS)
- IT management consultants
- Mobile services
- Web applications
Market share
The global sourcing market in India continues to grow at a prompt compared to the IT industry. India has become the leading sourcing destination across the world, accounting for approximately 55% market share of the US$ 200-250 billion global services sourcing business in 2019-20. Indian IT firms have set up over 1,000 global delivery centres in about 80 countries across the world.
India became the digital capabilities pivot of the world with around 75% of global digital talent present in the country.
IT industry’s revenue was evaluated at around US$ 191 billion in FY20, growing at 7.7%. It may approximately reach US$ 350 billion by 2025. Furthermore, revenue from the digital segment has looked forward to form 38% of the total industry revenue by 2025. Digital economy is estimated to reach Rs. 69, 89,000 crore (US$ 1 trillion) by 2025. The domestic revenue of the IT industry was estimated at US$ 44 billion and export revenue was estimated at US$ 147 billion in FY20.
Contribution to Indian GDP
The Information Technology sector has enlarged its contribution to India’s GDP from 1.2% in 1998 to 7.7% in 2017.According to the National Association of Software and Service Companies, the sector accumulated 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%. In 2020, India’s IT workforce resulted in 4.36 million employees.
Employment statistics
In the Information Technology of India the total number of employees grew to 1.02 million cumulatively for four Indian IT majors including TCS, Infosys, Wipro, and HCL Tech as on December 31, 2019. The industry employed 205,000 new recruits, up from the 185,000 jobs added in FY19 and had 884,000 digitally skilled talents in 2019.
Major companies
1. Tata Consultancy Service
The company which, initially set up as “Tata Computer Systems” was founded in 1968 by division of Tata Sons Limited Today, the company gave rise to over 70% of the revenue of Tata Sons. TCS has become one of India’s biggest Information Technology service providers by revenue. The company has close to 400,000+ employees over 46 countries and is the largest IT recruiter in India over a decade…
2. Infosys
Infosys is ranked as the second-largest IT Company in India and was founded in 1981 with seven employees and today, it accommodates over 200,00 workers worldwide. The company is headquartered in Bengaluru and provides consulting, services, and information technology business. The company became the first Indian organization that was listed in NASDAQ. Now, the company is highly involved in research of NextGen Technology, Machine Language and AI apart from providing software services to various domains.
3. Wipro
Wipro is found to be one of the oldest Indian companies, Wipro was incorporated in 1945. At present, Wipro has an employee strength of over 160,000 in 6 continents and in 2002 it has become the first Indian IT company to achieve the ISO 4001 certification. The company provides information technology business, consulting, and services to the IT industry, and has several key focus areas like, Data Science, Machine Learning, and Analytics
4. HCL Technologies
Founded in 1976, and is headquartered in Noida, India with a worldwide workforce of 117,000+ people across 30 nations. The firm is popularly known as the IT giant in manufacturing and supplying computer equipment and servers. They also provide IT consulting services in different sectors like healthcare, automotive, consumer goods and banking.
5. Tech Mahindra
Tech Mahindra is a subsidiary of the Mahindra Group and was founded in 1986. The company is among the largest providers of Information Technology and offers a range of services including software, engineering design and maintenance. The company has employers of over 110,000 technologists operating in over 90 countries. The company was among the top in the Fortune India 500 in the Indian IT Industry and globally.
Digital India
Digital India is a program that transforms India into a digitally empowered society. It is a program to prepare India for the future. It is an IT based umbrella program that weaves together a large number of ideas and thoughts into a single comprehensive vision so that each of them is seen as a part of a larger goal. This weaving together makes the mission informative in totality.
It is also a program that works in synchronization. It pulls together many existing schemes into one platform under common branding as digital India. The vision of digital India focuses on three central key areas that are digital infrastructure, governance and service on demand, digital empowerment.
1. Infrastructure as a utility to average citizen:
- High speed internet.
- Digital identity.
- Mobile and bank linking.
- Cloud storage.
- Safe access.
2. Governance and services on demand:
- Credentials cloud based
- Real time access
- Integration
- Business ease
- Secure payments
3. Digital empowerment
- Digital literacy
- Digital resources
- Indian language
- Digital platforms
- Cloud base
In order to make everything possible there must be an excellent infrastructure where digital India is provided with 9 pillars listed as follows:
- Broadband Highways
- Universal access to mobile connectivity.
- Public internet access.
- e-governance
- e-kranti
- Global information
- Electronics manufacturing
- IT Training for jobs
- Early harvest programs
Future of IT in India
The Information Technology industry is one of the biggest industries in India. It exports around $15billion worth of services. The technologies being used in Indian IT firms are changing rapidly. Now companies are focusing on its digital business and automation, like Cloud computing, Big data, Artificial Intelligence. Testing Automation. It is predicted that 25% jobs are going to be unsecured in the next 3 years. Yet, the professionals can focus on new and emerging technology for survival. IT jobs are not secure like the government job. One has to update themselves every time to survive in the industry. The companies will favor an experienced person than a fresher in these new technologies. So, it may be a challenging situation for a fresher rather than an experienced. If we talk about overall scope till 2025, differentially the number of employees working in the IT sector will of course be doubled, but not in every type of profile and Technologies. So, one needs to transform himself according to the trend and requirement to compete with the emerging future trends.
Conclusion
India, in the past, has been considered as slow when it comes to IT and ITES development as compared to other western countries. While now the Government is taking stringent steps to fast forward the implementation of new technologies. Holding hands with the Indian Government services, Information Technology has been an aid to businesses, governments, and individuals to increase their efficiency and effectiveness. The employees in the country must work hard with the trends like Artificial Intelligence, Smart Cities, Blockchain, Internet of Things, and more to meet the next generation tech.
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