PROGRESS OF INFORMATION TECHNOLOGY (IT) INDUSTRY IN INDIA

Made By:- Abhishek Kapoor A30101911130

INTRODUCTION
O Information Technology is one of the most important

industries in the Indian economy.

O The IT industry of India has registered huge growth in

recent years.
O India's IT industry grew from 150 million US Dollars in

1990-1991 to a whopping 50 billion UD Dollars in 20102011

O In the last ten years the Information Technology industry

in India has grown at an average annual rate of 30%.

LIBERALISATION
O The liberalization of the Indian economy in the early O

O O

nineties has played a major role in the growth of the IT industry of India. Deregulation policies adopted by the Government of India have led to substantial domestic investment and inflow of foreign capital to this industry. In 1970, high import duties had forced IBM to leave India. However, after the early nineties, many multi national IT companies, including IBM, have set up their operations in India. During the ten year period 1992-2002, the Indian software industry grew at double the rate as the US software industry.

REASONS FOR GROWTH

O Abundant availability of skilled manpower O Reduced telecommunication and internet

costs
O Reduced import duties on software and

hardware products
O Cost advantages O Encouraging government policies

MAJOR COMPANIES/PLAYERS
O Tata Consultancy Services (TCS) O Wipro O Infosys O HP O HCL

TCS TURNOVER
Mar '12 Sales Turnover Other Income Total Income Total Expenses Operating Profit Mar '11 Mar '10 Mar '09 Mar '08 IN CR 38,858.54 29,275.41 23,044.45 22,404.00 18,533.72 2,685.18 494.73 177.6 -456.24 445.95 41,543.72 29,770.14 23,222.05 21,947.76 18,979.67 27,472.82 20,511.88 16,372.78 16,383.17 13,513.61 11,385.72 8,763.53 6,671.67 6,020.83 5,020.11

WIPRO TURNOVER
Mar '12 Sales Turnover Other Income Total Income Total Expenses Operating Profit 32,053.60 856.70 32,910.30 25,639.90 6,413.70 Mar '11 26,340.70 640.50 26,981.20 20,539.60 5,801.10 Mar '10 23,177.60 428.7 23,606.30 17,420.50 5,757.10 Mar '09 20,987.30 484.1 21,471.40 16,748.50 4,238.80 Mar '08 17,461.20 358.3 17,819.50 13,776.90 3,684.30

INFOSYS TURNOVER
Mar '12 Sales Turnover Other Income Total Income Total Expenses Operating Profit 31,254.00 1,829.00 33,083.00 21,193.00 10,061.00 Mar '11 25,385.00 1,147.00 26,532.00 16,971.00 8,414.00 Mar '10 21,140.00 910 22,050.00 13,780.00 7,360.00 Mar '09 20,264.00 502 20,766.00 13,358.00 6,906.00 Mar '08 15,648.00 683 16,331.00 10,685.00 4,963.00

HCL TURNOVER
Jun '12 Sales Turnover Other Income Total Income Total Expenses Operating Profit 8,907.22 144.66 9,051.88 6,240.80 2,666.42 Jun '11 6,794.48 166.27 6,960.75 5,278.11 1,516.37 Jun '10 5,078.76 163.05 5,241.81 3,713.60 1,365.16 Jun '09 Jun '08

4,675.09 4,615.39 265.81 170.4 4,940.90 4,785.79 3,467.00 3,673.60 1,208.09 941.79

SEGMENTATION
The IT industry can be broadly divided into four segments O IT services O Softwares (includes both engineering and

Research and Development)

O ITES-BPO O Hardware

WORLD MARKET SHARE OF MAJOR PRODUCERS OF IT HARDWARE

I.T. HARDWARE INDUSTRY IN INDIA

Contribution in GDP Annual Revenue Employment

5.9% $60 billion 2.3 million

THE INDIAN ADVANTAGE

India ranks as the most competitive supply of skilled Labour. Indian companies have earned credibility in delivering to mission-critical requirements, following the successful implementation of Y2K and Euro conversion solutions. 170 Indian software companies have already acquired quality certification : ISO 9000 Large pool of software professionals, proficient in English. Friendly government, developing economy and political stability

IT INDUSTRY OF INDIA
Particulars IT Services - Exports - Domestic ITES-BPO - Exports - Domestic R&D products - Exports - Domestic Hardware Total IT industry FY 2008 10.4 7.3 3.1 3.4 3.1 0.3 2.9 2.5 0.4 5.0 21.6 FY 2009 13.5 10.0 3.5 5.2 4.6 0.6 3.9 3.1 0.7 5.9 28.4 FY 2010 17.8 13.13 4.5 7.2 6.3 0.9 5.3 4.0 1.3 7.0 37.4 FY 2011 23.7 18.1 5.6 9.5 8.3 1.2 6.5 4.9 1.6 8.2 47.8

- Exports
- Domestic

13.4
8.3

18.2
10.2

24.1
13.2

31.9
15.9

CONCLUSION
O IT is a fast-growing, export-oriented sector O Also definite potential for contributing to broad-

based growth much more than software exports where reform is needed

O ITs success exposes key bottlenecks and areas O Policy initiatives have to be general, not sector-

specific, or narrowly targeted IT as the thin end of the wedge development governance,education, operational efficiency, market efficiency

O IT can also contribute to broader economic