A BRIEF ON IT AND ITES

INDUSTRIES & ITS GROWTH.

WHAT IS IT ?
 As defined by
INFORMATION
TECHNOLOGY
ASSOCIATION OF
AMERICA (ITAA)
“IT” is the “study,
design, development,
implementation, support
or management of
computer based
information system
particularly software's
applications & computer
hardware.
 IT SECTOR IN INDIA
IT sector in the country has increased at an incredible
rate of 35% per year for the last 10 years reinforces the
view that India is world class in IT

In IT services , India is emerging as one of the most

preferred destinations for BPO‟S.

It is playing an important role in economic development

in a broader sense, beyond just economic growth.

The IT sector is one of the largest employers of women,

and therefore, can play a crucial role in women
empowerment and the reduction of gender inequalities.
 The growth in the BPO sector under the supervision of the
IT-ITES sector has been phenomenal. According to
NASSCOM, “The IT-BPO sector in India aggregated
revenue of US$ 100 billion in 2012, where export and
domestic revenue stood at US$ 69.1 billion and US $31.7
billion respectively”.




 The estimated employment generation in the 2012 was an
expected 230,000 thus providing direct employment to 2.8
million and indirect employment 88.9 million people all
over the country. According to a report prepared by
Gartner, the top five outsourcing companies of India are
TCS, Cognizant, Infosys, Wipro and HCL Technologies.
LIBERALIZATION OF THE ECONOMY & THE SEEDS OF IT BOOM IN INDIA


 Abolition of licenses

 Rationalization of taxes

 Export thrust

 Reduction of import tariffs

 Abolition of wealth tax

 Foreign exchange reforms

 Free pricing of IPOs

 Foreign portfolio investments
 Employee stock option plans
IT SECTOR INCLUDES….

BPO‟S KPO‟S

IT
SECTOR
WHAT IS BPO ?

 BPO stands for Business processing

outsourcing. It includes contracting of a
specific business task, such as payroll to

a third party service provider. 

 BPO is implemented as a cost saving

measure for tasks that a company
requires, but does not depend upon to
maintain their position in the market place..
 TOP 5 BPO’S IN INDIA

 TCS (TATA CONSULTANCY SERVICES) -

It is the largest IT employer in India, with
more than 126,000 employees.
 INFOSYS:- it has more than 1,04,850 employees.

 WIPRO:- it has carved a unique position in the
outsourcing company opreates from 10 different

locations. It has more than 98,000 employees.
 COGNIZANT:-it is a forbes global 200
companies,and is a member of fortune 1000,and
is ranked among the information technology

companies.
 HCL TECH-it has more than 54,000 employees
 and HCL‟S BPO‟S focuses on sectors like telecom
,retail ,banking and financial services.
WHAT IS KPO’S ?
 KPO stands for knowledge process
outsourcing. It is claimed that it is one
 step extension of BPO.
 KPO industry is handling more amount of high
skilled work other than the BPO industry.

TOP 5 KPO‟S IN INDIA.

1.Genpact.
2.Evalueserve.
3.Ugam solutions.
4.WNS global service.
5.24/7 customer.
 INDIAN SCENARIO
 Creating opportunities for the
‘out-of-the-mainstream’
candidates.


 India is a popular choice for
customers seeking outsourcing
services because it is able to offer
a 24*7 services by reduction in
costs while maintaining quality.




 Some flagship companies that are
providing good career in IT sector
are – Infosys technologies, TCS,
WiproTechnologies, Tech
Mahindra,
Cognizant, HCL technologies,
Satyam Computers etc.
TOP THREE PLAYERS IN IT SECTOR
CURRENT EMPLOYMENT IN IT AND
ITES INDUSTRIES

 The Indian IT and ITES industry currently

employs about 2.2 million persons in

comparison to 0.8 million in 2004. 

 In the context of growth forecasted for the

industry, availability of skilled human resource
supported by appropriate skill building
initiatives will be key to this growth.
In the near term, it is expected that the IT
and ITES industry can achieve an export
target of USD 60- 62 billion by FY 2014,
employing 2.5-3 million professionals directly
in the export segment and contributing
substantially to the socio-economic
development of the country.
PROJECTED INDUSTRY SIZE AND
HUMAN RESOURCE REQUIREMENT

 As outlined in the earlier sections,

sustained technology spending globally,
and increasing GDP growth and spending in
India are expected to be primary drivers of
growth.

 Post 2020, growth drivers in addition to
traditional IT and BPO services large
companies (in the Fortune 500) in US and
EU will arise from Small and Medium
Businesses (SMBs), public sector,
healthcare, media, and utilities.
 A significant portion of the growth would be driven by markets
in BRIC countries, APAC, Japan, and Rest of the world. A shift
would occur in terms of customer expectations, led by
innovation, end-to- end offerings, risk management, and
compliance. It is expected that the „outsourceable‟ market would
expand from the current US $ 500 billion to about US $ 1.5 to 1.6
 trillion by 2020.
 Sustained GDP growth, increasing public sector spends, and
adoption of IT by industry would drive the domestic component
 of the market.
 Given these factors, it is expected that the Indian IT and ITES
Industry would record about US $ 220 billion in exports and US
$ 60 billion domestically by 2022, totalling to about US $ 260
billion growing at a CAGR of 12.8%.
PROJECTED HUMAN
RESOURCE REQUIREMENTS
SUPPLY OF MANPOWER IN IT SECTOR

 India‟s public investment in technical education

beginning in the 1960s provided the foundation for
growth of the IT industry. Lack of adequate
opportunities for Indian engineers in the domestic
economy has ensured an abundant and cost
effective workers for Indian export software industry.




 In the 1960s the govt. created a series of elite
institutes for higher education in engineering and
management, in collaboration with leading
universities in USA, that was IIT and IIM.
  Professional in India attracts large number of
applicants. Most of the IIT, REC and IIM admissions
programs are able to choose one out of 100 or more
applicants. This selectivity and reasonably good
training produces the higher calib engineers that
formed the backbone of the software industry in its

early years.
 After that subsequent expansion of technical and
management in India helped fuel the numbers needed

for the high growth.
 Now India has a large higher education system with
about 253 universities and nearly 13000 colleges
L producing 2.5 million graduates every year.
 Nearly 3,00,000 engineering degree and other
graduates enter the workforce every year. Since
engineers from any specialty are willing to work in
the software industry, so far supply has kept pace

with the demand.
 Many initiative by the HRD ministry helped to
multiply technical institutions and technically

qualified graduates.
 Recently privatization of technical produced in an
ever increasing technical labor supply to meet
demand. By the end of last decade, there was an
estimated 660 engineering colleges in the country.
 Much of this manpower supply is due to
privatization of technical education. In 1999,
output from private institutions outstripped the
state output. Even though the number of engineers
has increased, quality has not deteriorated
significantly. In 1969, the IITs produced around
1350 engineers.

 The private cost to start an engineering college
that produces 500 students per year is currently
about 500 million Indian rupees. The private
institutions receive no funding from Indian
government.
 One reason for the concentration of software
industries in south is the proximity of the locations

to a very large number of engineering college.
 The HRD ministry played a facilitating role in
ensuring adequate supply and quality of the

technical labour force.
 Ministry policies encouraged creation of private
engineering colleges and industry IT training
institution with the proliferation of new private
colleges and IT training institutions.
 The HRD ministry developed mechanism to assure
quality control , including the establishment of an All
India Council For Technical Education to regulate

technical education.
 Additionally, the introduction of a MCA degree in
many universities in late 1980s was aimed at
producing graduates with combination of technical
and management skills required for expanding It
industry.
Spending By IT Companies
On Training & development.
WHAT IS TRAINING & DEVELOPMENT:-
A learning process and task
oriented activity.



 The process of teaching new employees the
basic skills they need to perform their jobs.

Effective trainings convey relevant

anduseful information that inform
participants and develop skills and behaviors
that can be transferred back to the workplace.

Edwin B. Flippo:
"Training is the act of increasing the
knowledge and skill of an employee for
doing a particular job.'
SPENDINGS ON TRAINING & DEVELOPMENT:-

 Indian organizations on average spent US $331 per

employee on training and development in 2011,
according to a study on learning and development
trends in India, by the American Society for Training
& Development (ASTD) and Harvard Business

Publishing (HBP).
 The figure includes learning and development staff
salaries, travel costs for L&D staff, administrative
costs, non salary development costs, delivery costs
(such as classroom facilities and online learning
technology infrastructure), outsourced activities and
tuition
 In terms of IT industries,Infosys annually spends
over Rs 800 crore (Rs 8 billion) on training alone.
Wipro spends about 2 per cent of its net sales in

providing training to employees.
 Infosys is rated amongst world best in employees
training and development.
 CURRENT CHHATTISGARH
PERFORMANCE IN IT SECTOR.
CHHATTISGARH(C.G)
 Chhattisgarh state was formed on 1 November 2000.Raipur was
made its capital city. C.G is a state in Central India . It is the 10th
largest state in India . With a population of 25.5 million,
Chhattisgarh is the 16th most-populated state of the nation. It is a
source of electricity and steel for India . Chhattisgarh accounts
for 15% of the total steel produced in the country. Chhattisgarh is
one of the fastest developing states in India.

 C.G is generously best toward with natural resources like- forests ,

minerals & surface water.
 South eastern coal field limited, NTPC have presence in state.

But in IT sector chhattisgarh do not have any big company.

 CG PERFORMANE FOR IT COMPANIES:-
 In recent years, Chhattisgarh is also getting exposure in
 information technology (IT) projects and consultancy.
 Its government is also promoting IT and has set up a body to take care of
the IT solutions. The body, known as CHIPS , is providing large IT projects
such as Choice, Swan, etc.

WHAT IS CHIPS –
 Chhattisgarh infotech and biotech Promotion Society (CHiPS) has been set
up to give impetus to IT growth in the State and implement initiatives for
overall socio economic development.



 CHiPS ensures top-of-the-board institutionalised coordination and
implementation of State’s plans for enabling benefits of IT to every one.
 CG PERFORMANE FOR IT COMPANIES:-

Companies of IT in c.g :-
 Nimble Technologies:

Software Development Company, Website

Designing IT company korba.
 Prima Softtech.com

Prima softtech as a provide IT services, consulting and

business solutions partner,

IT companies Bilaspur.
 Mini Infotech

IT companies raipur.
INTRODUCTION OF IT POLICY

Chhattisgarh announced many initiatives in the

IT sector, which deliver significant benefits to
all the citizens & all the businesses.
Our state vision of pioneering e-Governance
initiatives in India that serve as a benchmark
for others to follow.
IT Policy is culmination of our clear vision and
goal of leveraging the potential of Information
Technology for rapid social and economic
development aimed at significantly improving
the quality of life for all citizens of the State.
 The Government of Chhattisgarh visions ‘Vikas mool
mantra, Aadhar loktantra’ (‘Driving Development
through Democratic Governance’) and believes
Information and Communication Technology (ICT) is
a particularly important medium for the state in
reaching out and improving livelihoods specially for its
overwhelming SC / ST population across 44% forest
area, which had
largely remained untouched by modern development.
 An overwhelming proportion of this population are
dependent upon agriculture and forest for their basic
livelihood. Despite significant bottlenecks of limited
access to market related information, monsoon
forecasts, government schemes etc. ICTs has the
potential to significantly improve this contribution.
VISION
 The State of Chhattisgarh recognizes the
importance of Information and Communication
Technology as a key enabler in its economic

development and improving the quality of life.
 The State has prepared its IT policy with a vision
of establishing an information society consisting of
 informed, active and therefore responsible citizens
– the basic tenet of a true democracy. It seeks to
provide all citizens widespread and easy access to
government services, in the local language
effectively addressing the existing digital divide
and promoting entrepreneurs.
 The State's IT Policy has been
designed to achieve the Governments
vision of creating an ‘enabled Society
effectively contributing to the Social
 and Economic Development of the

State’.
 The state seeks to create a knowledge
society where access to information
and knowledge would be symmetric
amongst all seekers and users and
every citizen must feel comfortable in
accessing information through IT.
OBJECTIVE OF IT POLICY
 To create job creators rather than job

seekers.
 To establish Chhattisgarh as the leading

destination of choice for IT investments.
 To provide an enabling environment for a

robust growth of local IT industry in the State.
 Leveraging IT for improving governance in

the state.
 Taking internet to masses for facilitating
information access.
TARGETS

 Ensure anytime and anywhere connectivity

setting the stage for fostering a competitive IT
Industry. This approach besides resulting in
additional employment and raise incomes would
lead to productivity and better services in other
sectors.

 Provide all citizens widespread and easy access
to government services at an affordable cost and
in local language by setting up Integrated Service
Delivery Centres across the entire state.
  100% IT literacy in all schools and colleges

in a phased manner.
 Promote entrepreneurs, increase investment
and employment.
DEVELOPMENT STRATEGIES
 Technology enabled governance
To start the use of IT , develop the market for IT
product, the Government would maximise the use
of technology in all its processes. In doing so
Government Process Reengineering would be
encouraged wherever necessary.
Infrastructure and Human Resource
Development
The State should build best-in class education,
training facilities and R&D infrastructure to equip
its citizens. State should work towards
establishment of software parks and extension. An
Information Technology University will be
Extended Government support for
Information Technology Development
Chhattisgarh has very high priority to Information
Technology. IT has been identified as a „Special
Thrust Sector‟ industry in the Industrial policy.
The some incentives are –
 Interest subsidy on term loan and working


capital paid by SSI.
 Subsidy on Capital Investment by SSI.

 Subsidy on Commercial Tax paid within the
State.
 Exemption from payment of electricity duty for
 new units.

 Subsidy on Allotment of land premium.

 Exemption from payment of entry tax.
 New small scale industries will be given full
exemption from payment of land revenue on
 diverted land up to a maximum of 5 acres.
 Reimbursement of up to 50% of the fee paid up
to Rs.75,000/- for an ISO or any international
 certification.
 NRI and FDI investors will be eligible to get
additional 5% directed incentives more than
general category investors.
ACTION PLAN
 Supportive Institutional Structure – CHiPS
The Chhattisgarh infotech and biotech
Promotion Society (CHiPS) has been set up
to give impetus to IT growth in the State and
implement initiatives for overall socio-economic
development.
CHiPS ensures top-of-the-board
institutionalised coordination and
implementation of State‟s plans for enabling
benefits of IT to every one.
The Chief Minister of Chhattisgarh heads the
High Powered Governing Council of CHiPS. The
Council includes eminent persons from
Knowledge and Technology sectors,
representatives from Government of India and
National Agencies, and key State Government
 Departmental Computerization for enhanced
Service Delivery Capability
To facilitate computerisation in all departments,
each department will have an IT working group,
a Chief Information Officer (CIO) and a
representative from CHiPS besides co-opting IT
professionals on voluntary or contractual basis
from other Departments or Agencies.
A major emphasis of the computerization in
departments would be to ensure the
investments in computerizations are directed at
improving the service delivery capabilities of the
Government departments.
Some of the major e-governance
initiatives are-
 CHOiCE : Chhattisgarh Online
information System for Citizen
Empowerment. CHOiCE provides one
stop solution, for anywhere, any time,
based secure services for all the
requirements of citizen. CHOiCE centres
will provide a wide range of services
including connectivity, information, IT
education, e-governance and e-
commerce.
 Local Language solution: State is
committed for improving standards in local
language solutions. For this purpose, State
 SWAN (State Wide Area Network): For
interdepartmental communication and data sharing
within the state communication infrastructure has
been planned under this project. The State
presently have connectivity up to block level with
data and video communication via VSAT (Very
Small Aperture Terminal) under programme
 called e-Panchayat.
 e-Procurement: State encourages to implement e-
Procurement in all the Departments of the State to
capture whole purchase cycle. The implementation
of e-Procurement is now in the pilot stage in the five
Departments of the State viz; Chhattisgarh State
Infrastructure Development Corporation (CSIDC),
Health Department, Public Works Department
(PWD), Water Resource Department (WRD) and
Chhattisgarh State Electricity Board(CSEB).
 Telemedicine: A comprehensive
telemedicine network would be
launched which would also ride over
State Wide Area Network. The objective
of the State telemedicine net would be
to provide instant medical advice and
facilities to the citizens of the State,
This would cover backward areas.