India’s IT Sector commonly indicates to the software side of computer technology. Again, this sector is divided into two: IT Services and Business Process Outsourcing (BPO). Both the segments require certain basic elements of service such as 1) on site and off site work, 2) work in clients’ India or overseas, 3) writing of codes/programs or simply working upon provided application and 4) providing innovative solutions which did not exist earlier. This industry is human capital intensive. The industry currently provides employment to over 45 lac people and contributes over 7.5% in the national GDP.

The industry grew at 8% during 2017-18 and in the current year 2018-19, the industry is likely to grow at 9%. The Q1 results of TCS (the industry leader) point towards a healthy current year for the industry.

The turnover of the IT industry during the current year is likely to cross USD 180 b: Exports being USD 137 b and the rest of USD 43 b as domestic sales. During 2017-18, the exports were USD 125 b and the size of the industry was USD 154 b.

Apart from adding USD 14-15 b to the industry size, the IT companies would also be adding roughly 125,000 employees too. People working in this industry are commonly known as ‘techies’. Maximum number of techies come from the South India, especially Andhra Pradesh. Bangalore is known as the IT Capital of India and also as the Silicon Valley of India. Other major centres of IT excellence are Hyderabad, Mumbai, Pune, NCR and Chennai.

National Association of Software And Solutions Companies (NASSCOM) is the representative organisation of the industry. It’s present president is R Chandrashekhar who is ex TCS CEO.

The driving areas for the growth of Indian IT Sector will be:

1. Digital Business: all major companies in the world are in the process of digitising their respective businesses. The global budget is likely to grow to USD 310 b by 2020 as against USD 180 b in 2017-18.

2. Artificial Intelligence (AI) And Robotics is expanding at a faster rate than anticipated earlier.

3. E Commerce / On Line Shopping is registering deep penetration and the global giants such as Amazon, Alibaba and Walmart have increased their IT budgets manifold.

4. Every Hardware needs operating and servicing software. Consistently Higher production of hardware is demanding support from IT companies. Internet of Things (IoT) is not only reality but is catching up fast and requires IT Industry support in development and service of its applications.

5. BFSI Sector: This sector is not only expanding fast needing new Core Banking Solutions (CBS) but also going through scrapping of old CBS to be replaced by newer versions.

6. Education and Training: This is a new Sector which is expanding at an unparalleled rate.

7. Start Up Ventures: These new generation businesses are totally IT driven.

8. China market: China is decisively opening up its market for the Indian IT sector.

9. Domestic Demand: At 15%, it is likely to be mich higher than the export demand.

10. Falling Rupee: will give a boost to exports as Indian products to become more competitive.

But there are negative aspects as well. USA, the biggest customer for the Indian IT Industry, has imposed serious visa restrictions on the movement of Indian techies. Secondly, ever changing needs and quick obsolescence of technology and knowledge is creating scarcity of competent people.

TCS, Infosys, WIPRO, HCL, Tech Mahindra, NIIT and Cognizant are top players in this industry. The only Indian company with over USD 100 b market capitalisation is TCS which is an IT company. The sector is also the largest exporting sector from the country.

It’s amply clear that the Indian IT Industry has further matured in the last 7-8 years and has started looking forward to a brighter future.