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ISSN: 2319-4413
ABSTRACT
In the last couple of years, with a consistent growth rate of
8 percent the India has become the fifth largest economy
in the world. Towards this, ICT has played a pivotal role,
its contribution in total GDP increased close to 7 percent
in 2011-12 from a meager 2 percent in 2000-01, and is
likely to touch 10 percent by 2015. Despite the severe
recession in 2009, Indian IT-BPO continued with the
momentum of high growth rate. On the employment front
the sector has recorded the highest employment elasticity.
In the paper, an attempt is made to analyze the factors that
led to this, and is there anything to be learnt by other
sectors, both for output growth and employment.
Key words:
IT-BPO, Export,
Challenges.
Employment,
Government Policy,
INTRODUCTION
In the last couple of years (till 2012), with an average
growth rate of over 8%, India has become the fifth largest
economy in the world after the US, Japan, China and
Germany. The ICT (Information and Communications
Technologies) has played a pivotal role towards this. For
instance, its contribution in total GDP has increased
steeply from 3.2 per cent in 2004-05 to 7 percent in 201011. Despite the severe recession in 2009, Indian
Information Technology- Business Process Outsourcing
(IT-BPO) industry was able to sustain its trend of high
growth rate. For instance, in 2011-12, the aggregate
revenue of IT-BPO industry grew by over 14.8 per cent
reaching to US $ 87.6 billion. Similarly, with a 16.4
percent growth rate, software and services exports
(including ITES-BPO exports) increased to $ 68.7 billion
in the same year.
According to AT Kearneys FDI Confidence index, in
terms of international trade and competitiveness India has
displaced the U.S. as the second most favored destination
in the world after China. By 2025, Indian economy is
projected to become around 60 per cent the size of the US
economy. The key factors underlying this growing
optimism include diversified market, continued expansion
of the service offerings portfolio and steady growth in
scale by Indianorigin service providers, among others.
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CONCLUSION
In the early 70s when IT was conceptualized, it was
limited to a small number of the gadgets based on the
micro-electronics such as pocket calculator, digital
watches and electronics games. People may have heard of
the existence of the micro processor as being sophisticated
and very expensive forms of the typewriter, but an average
person had probably never seen such a device, let alone
had access to one. Of course, many were aware that
computer were increasingly being adopted by a variety of
organizations because their bills, wage or salary slip,
cheques and bank statements contained an array of the
digital figures, but this hardly seemed to be of major
significance to their way of life. It is an accepted fact that
the most important scientific and technological
development of contemporary history is the ICT. It has
pervaded all walks of modern life and society so
profoundly that the modern society is colloquially known
as Information Society.
REFERENCES:
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Table 1: Gross Domestic Product (GDP) of ICT Sector (all figures are in Rs. Billion at Current Prices unless otherwise
mentioned)
2007-08
43209
708(57)
918(59)
1178(61)
1452(61)
536(43)
630(41)
763(39)
931(39)
1244
96
1548
133
1941
122
2383
147
1340
1681
2063
2530
4536
15142
5194
17173
6180
19848
7311
24042
2.1
2.6
2.0
2.0
8.2
9.0
9.8
9.9
4.7
5.1
5.5
5.9
4.3
4.7
5.1
5.5
0.3
0.4
0.3
0.3
7.2
7.9
5.9
5.8
92.8
92.1
94.1
94.2
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2008
25,140
12,530
14,090
24,180
6,560
9,630
92,130
203,330
54,670
350,130
2011
2012
Net
Addition
Telephone
Wire line
37
34
32
-5
Wire-less (Mobile)
585
812
919
334
Total
622
846
951
329
Tele-density
52.74
70.89
78.66
25.92
Rural
24.31
33.83
39.26
14.95
Urban
119.45
156.53
169.17
49.72
Source: Department of Communication and Information Technology, Annual Report, 2011.
Table 4: Growth Performance of the ITES Sector in India (US$ Billions)
Growth
2007-08 2008-09 2009-10 2010-11(E) 2011-02 (P) 2011-12
Revenue
Total IT BPM
Services
52.1
59.9
Export
40.4
47.1
Domestic
11.7
12.8
Source: Economic Survey, 2012-13.
Note: The data exclude the hardware.
64
49.12
14.3
76.3
59
17.3
87.6
68.7
19
14.8
16.4
9.7
CAGR
(11th
Plan)
13.9
14.2
12.8
2012-13
8.4
10.2
1.9
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2006
398000
415000
115000
365000
1293000
2007
562000
545000
144000
378000
1629000
0-9
10-49
50-49
250+
Total
140160
59.21
70.31
65.83
30.75
62.05
78.67
92.82
65.83
144710
2006-07
146385
2007-08
Source: ASI, 2007-08.
61.50
67.26
74.72
77.71
69.26
73.21
36.04
37.05
64.37
68.57
79.60
81.93
94.31
94.76
69.26
73.21
2005-06
18.29
24.39
35.37
17.07
4.88
100
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Gap
100000
-5000
140000
235000
2004-05
170 000
2005-06
222 000
2006-07
270 000
2007-08
290 000
195 000
219 000
231 000
246 000
365 000
441 000
501 000
536 000
102 000
133 000
162 000
180 000
99 000
113 000
118 000
123 000
201 000
246 000
280 000
303 000
2010-11
3296
1665
780
1227
1103
4575
1989
564
551
Cumulative
31710
12544
10973
10933
% of
Total
20.1
7.9
6.9
6.9
1602
10239
6.5
2011-12
24
6
12
10
27
5
10
10
24
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Appendix: A: Top Twenty ICT Companies, Top Fifteen BPO Companies and Top Twenty BPO Employers
Companies in India in 2007-08
S. No
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KPIT Cummins
Enabled software for automotive and infotainment
Talisma
CRM Suites
Teneoris
Integration of home digital entertainment with computing platform
Source: Innovation Hotspot in India, TAFTIE, the European Network of Innovation Agencies, July, 2011.
Appendix C: The Other Emerging ICT Cities
Category
Challengers
Followers
Aspirants
Cities
Ahemadabad, Bhuvaneshwar,
Chandigarh, Coimbtore, Indore, Jaipure,
Kochi, Lucknow, Madurai, Manglore,
Nagpur, Thirunanathapuram, Trichy,
Vadodra and Visakhapatnam
Aurangabad, Bhopal, Goa, Gwalior,
Hubli, Darwad, Kanpur, Mysore, Nasik,
Pandicherry, Salem, Surat and
Yijawada.
Allahabad, Dehradun, Durgapore,
Gangatok, Guwahati, Ludhiana, Patna,
Raipure, Ranchi, Shimala, Siliguri,
Srinagar and Varanasi.
Strength
These Cities are building an IT ecosystem to
scale up employment in the sector by prompting
IT SEZ and attracting major companies to take
advantage of reverse migration
These Cities are working towards improving the
infrastructure to levels of Challengers, with
greater focus on academic and technical
institutional setup.
These cities are slowly enhancing their awareness
about IT specific knowledge base and working
towards improving infrastructure and promoting
educational institutions to support the knowledge
industry.
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