Information Technology in India: Thank You To Our Donors, Editors, and Readers in India!

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Information technology in India


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Information Technology in India is a vast industry which comprises information
technology services, consulting, and outsourcing.[1] The IT industry accounted for 8%
of India's GDP in 2020.[2][3] The IT and BPM industry's revenue is estimated
at US$194 billion in FY 2021, an increase of 2.3% YoY. [2] The domestic revenue of
the IT industry is estimated at US$45 billion and export revenue is estimated at
US$150 billion in FY 2021.[2] The IT–BPM sector overall employs 4.5 million people
as of March 2021.[4] The Indian IT–BPM industry has the highest employee attrition
rate.[5][6][7][8][9] In recent years the industry has been witnessing
skyrocketing resignations cutting across hierarchy.[5][7][9] As a global outsourcing hub,
the Indian IT industry is infamous of exploiting cheap labour.[10][11][12] As IT–BPM sector
evolves, many are concerned that artificial intelligence (AI) will drive
significant automation and destroy jobs in the coming years.[13][14] The United
States accounts for two-thirds of India's IT services exports. [15]

Contents

 1History
 2Contemporary situation
 3Major information technology hubs
o 3.1Bangalore
o 3.2Hyderabad
o 3.3Chennai
o 3.4Pune
o 3.5Delhi NCR
o 3.6Kolkata
 4See also
 5References
o 5.1Sources

History[edit]
See also: India Startup Ecosystem TimeLine
India's IT Services industry was born in Mumbai in 1967 with the establishment
of Tata Consultancy Services[16] who in 1977 partnered with Burroughs which began
India's export of IT services.[17] 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. [18]
Within 90 days of its establishment, the Task Force produced an extensive
background report on the state of technology in India and an IT Action Plan with 108
recommendations. The Task Force could act quickly because it built upon the
experience and frustrations of state governments, central government agencies,
universities, and the software industry. Much of what it proposed was also consistent
with the thinking and recommendations of international bodies like the World Trade
Organization (WTO), International Telecommunication Union (ITU), and World Bank.
In addition, the Task Force incorporated the experiences of Singapore and other
nations, which implemented similar programs. It was less a task of invention than of
sparking action on a consensus that had already evolved within the networking
community and government.
TIDEL Park in Chennai was the largest IT park in Asia when it was opened in 1999.

Regulated VSAT links became visible in 1994.[19] Desai (2006) describes the steps


taken to relax regulations on linking in 1991:
In 1991 the Department of Electronics broke this impasse, creating a corporation
called Software Technology Parks of India (STPI) that, being owned by the
government, could provide VSAT communications without breaching its monopoly.
STPI set up software technology parks in different cities, each of which provided
satellite links to be used by firms; the local link was a wireless radio link. In 1993 the
government began to allow individual companies their own dedicated links, which
allowed work done in India to be transmitted abroad directly. Indian firms soon
convinced their American customers that a satellite link was as reliable as a team of
programmers working in the clients' office.
A joint EU-India group of scholars was formed on 23 November 2001 to further
promote joint research and development. On 25 June 2002, India and the European
Union agreed to bilateral cooperation in the field of science and technology. From
2017, India holds an Associate Member State status at CERN, while a joint India-EU
Software Education and Development Center will be located in Bangalore.[20]

Contemporary situation[edit]
In the contemporary world economy, India is the largest exporter of IT. The
contribution of IT sector in India's GDP rose from 1.2% in 1998 to 10% in 2019.
[21]
 Exports dominate the Indian IT industry and constitute about 79% of the industry's
total revenue. However, the domestic market is also significant, with robust revenue
growth.[3] The industry's share of total Indian exports (merchandise plus services)
increased from less than 4% in FY1998 to about 25% in FY2012. The
technologically-inclined services sector in India accounts for 40% of the country's
GDP and 30% of export earnings as of 2006, while employing only 25% of its
workforce, according to Sharma (2006). According to Gartner, the "Top Five Indian
IT Services Providers" are Tata Consultancy Services, Infosys, Wipro, Tech
Mahindra, and HCL Technologies.[22] In 2022, companies within the sector faced
significant employee attrition and intense competition in hirings. [23]

Major information technology hubs[edit]


Bangalore[edit]
Infosys Media Centre in Bangalore, India.

Bangalore is a global technology hub and is Indias biggest tec hub. [24] As of fiscal
2016–17, Bangalore accounted for 38% of total IT exports from India worth $45
billion, employing 10 lakh people directly and 30 lakh indirectly. [25] The city is known
as the "Silicon Valley of India".[26][27] Notable tech parks are Electronic
City, ITPL, Bagmane Tech Park, Embassy Golf Links, Manyata Tech Park, Global
Village Tech Park, Embassy TechVillage. Apart from these IT companies are also
located in several other parts of the city. Notable IT companies of the area
include Infosys, Wipro, HCL Technologies, SAP Labs, Accenture, TCS, Oracle, IBM
India, Sonata Software, Mindtree, and Intuit India.[28]
Bangalore is also known as the "startup capital of India"; the city is home to 44
percent of all Indian unicorn startup companies as of 2020. [29]
Hyderabad[edit]

Amazon Hyderabad campus

Hyderabad – known for the HITEC City or Cyberabad – is India's second largest


information technology exporter and a major global IT hub, and the
largest bioinformatics hub in India.[30][31] Hyderabad has emerged as the second
largest city in the country for software exports pipping competitors Chennai and
Pune.[32][33][34] Notable tech companies
include Accenture, Amazon, AMD, Deloitte, Apple, Intel, Tata Consultancy
Services, Microsoft, HCL Technologies, Oracle
Corporation, Google, Qualcomm, Dell, Cognizant, Novartis, Pega, J.P Morgan, UBS.
As of 2022, the IT exports from Hyderabad was ₹183,569 crore (US$23 billion), the
city houses 1500 IT and ITES companies that provide 7,78,121 employment. [35][36][37]
[38]
 Notable tech and pharma parks are HITEC City, Genome Valley, and Hyderabad
Pharma City. The number of startups in Telangana had increased from 400 in 2016
to 2,000 in 2022. Hyderabad added two companies in unicorn startup list in first two
months of 2022.[39]
Chennai[edit]
Zoho headquarters in Chennai

TCS Signature Tower and Butterfly Campus in Chennai, India.

As of 2018, Chennai is India's third-largest exporter of information technology (IT)


after Bangalore and Hyderabad and business process outsourcing (BPO) services.[40]
[41]
 TIDEL Park in Chennai was billed as Asia's largest IT park when it was built. [42]
[43]
 Notable tech parks are International Tech Park, DLF Cybercity SEZ, Mahindra
World City, SIPCOT IT Park, Olympia Tech Park, One Indiabulls Park, 

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