Information and technology sector in INDIA
Information Technology means the use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video. The industry of information and technology is based on the service sector and data manipulation using particular inputs to get the desired output. Service sector basically depends on the client’s requirement for a particular solution.
India’s IT Services industry was born in Mumbai in 1967 with the establishment of the Tata Group in partnership with Burroughs. The first software export zone, SEEPZ — the precursor to the modern-day IT park — was established in Mumbai in 1973. More than 80 percent of the country’s software exports were from SEEPZ in the 1980s.
During the past decade, the Indian IT industry has been experiencing a dramatic growth. It grew from Rs.4.7 billion in 1991 to Rs.755.47 billion in 2003, accounting for nearly 3% of the GDP. The revenues generated from software exports reached $10.4 billion for the financial year 2003 with a 30% growth over the previous year. The main factors which contributed to the success story of the Indian IT industry are Support from the government, incentives and tax benefits, Liberal export-import policy, Nearly 80% of the software companies in the world that have SEI/CMM level 5 are from India.
The growth of the Indian economy is mainly owed to the IT sector and the liberalized government policy of reduction in telecommunication cost and import duties on hardware and software. Apart from the Multinationals like IBM, HP setting up shop in India for cost advantages and cheap labor, this industry has seen the growth of successful Indian companies like TCS, Infosys, Wipro, HCL, Patni etc. The industry’s contribution to GDP has significantly grown from 1.2% in 1999–2000 to 4.8% in 2005–2006.
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