Despite the global economic slowdown, the Indian IT software and services industry is maintaining a steady pace of growth. Software development activity is not confined to a few cities in India. Software development centers, such as Bangalore, Hyderabad, Mumbai, Pune, Chennai, Calcutta, Delhi-Noida-Gurgaon, Vadodara, Bhubaneswar, Ahmedabad, Goa, Chandigarh, Trivandrum are all developing quickly. All of these places have state-of-the-art software facilities and the presence of a large number of overseas vendors. India’s most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the U.S.  It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. The enormous base of skilled manpower is a major draw for global customers. India provides IT services at one-tenth the price. No wonder more and more companies are basing their operations in India.

India is among the three countries that have built supercomputers on their own. The other two are USA and Japan. India is among six countries that launch satellites and do so even for Germany and Belgium. India's INSAT is among the world's largest domestic satellite communication systems. India has the third largest telecommunications network among the emerging economies, and it is among the top ten networks of the world.

According to National Association of Software and Service Companies (NASSCOM), the IT investment in telecom in the country is primarily in applications and products for managing the network and providing improved customer service. In 2002-03, according to NASSCOM estimates, the total revenues of the Indian IT market were Rs317 billion, comprising hardware of nearly Rs180 billion and software and services revenues (including IT Training) of Rs137 billion. While overall, the Indian IT market has grown from Rs 5,4500 million (US$ 1.73 billion) in 1994-95 to Rs79,3370 million (US$ 16.5 billion) in 2002-03, accounting for 3% of India's GDP in 2002-03.

Today, India exports software and services to nearly 100 countries around the world. The share of North America (U.S. & Canada) in India’s software exports is about 61 per cent.  According to a NASSCOM - McKinsey report, annual revenue projections for India’s IT industry in 2008 are US $ 87 billion and market openings are emerging across four broad sectors, IT services, software products, IT enabled services, and e-businesses thus creating a number of opportunities for Indian companies. In addition to the export market, all of these segments have a domestic market component as well.

Other key findings of this report are:

  • Software & Services will contribute over 7.5 % of the overall GDP growth of India

  • IT Exports will account for 35% of the total exports from India

  • Potential for 2.2 million jobs in IT by 2008

  • IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion

  • Market capitalization of IT shares will be around U.S. $ 225 billion

Ministry for Information and Technology (IT), Government of India has taken a major step towards promoting the domestic industry and achieving the full potential of the Indian IT entrepreneurs. An IT committee was set up by the Ministry of Information Technology, comprising Non Resident Indian (NRI) professionals from the United States to seek expertise and advice and also to step up U.S. investments in India's IT sector.  Minister of Information Technology chairs the committee and the members include Secretary, Ministry of Information Technology and a large number of important Indian American IT entrepreneurs.

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