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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR)

Volume 3, No. 2, February 2014

ISSN: 2319-4413

ICT and Its Development in India


Pawan Kumar, Assistant Professor, Ramjas College, University of Delhi
Anita, Assistant Professor, Kalindi College, University of Delhi

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.

Over 600 multinational companies are known to be


sourcing product development and engineering services
from their centers in India. The growing nature of
responsibilities and ownership assumed by these India
based resources are helping India evolve into a strategic
hub for R&D. The industry has enhanced Indias
credibility as a business destination by creating a
fundamentally new model of global 24X7 service delivery
with forging relationships with 75 per cent of the Fortune
500 companies.
In addition to this, the ICT industry in India has fostered
the emergence of a large number of first generation
entrepreneurs. With the BPO going strong in the past few
years, the Knowledge Process Outsourcing (KPO) - called
the highest level of the BPO - is still at its nascent stage of
development in the country. With increased contributing
to total growth, IT-BPO industry has been creating
immense employment opportunities particularly for skilled
labours. It has also helped in mushrooming of several
ancillary industries such as transportation, real estate and
catering. It has helped in creating a rising class of young
consumers with high disposable incomes, and thereby
contributing in the rise of direct-tax revenue.
Further, with a double digit growth rate, direct
employment in the IT software and services sector has
grown many folds in the last decade. For instance, as per
NASSCOM (2011), the IT-BPO has generated nearly 2.8
million direct jobs opportunities in 2010 in India.
Similarly, the indirect employment attributed to the sector
is estimated to be about 10 million. Furthermore, the
industry has been a front runner in diversity at the
workplace (i.e. over 30 per cent of employees are women;
over 60 per cent of industry employ differently-able
people).
With this background, the whole chapter is structured as
follows. It begins with trends of ICT sector growth rate
and its pattern followed by the factors attributing to this,
with a special reference demand side factors. It further
talks about the direct and indirect employment
opportunities associated with the sector. Thereafter, a
review of supporting government policy is provided. And
finally, the vision of further development of the ICT and
what are the likely challenges to accomplish these targets
is elaborated.

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR)


Volume 3, No. 2, February 2014

1.1: THE ICT GROWTH IN INDIA: THE


UNDERLYING FACTORS
As per the latest NASSCOM Report (2013), in the past
two decades, the ICT sector in India has exhibited a trend
of impressive growth rate. Its contribution in total GDP
increased from 3.4% in 2000-01 to 7.5 percent in 2011-12.
Interestingly, as evident in Table 1, a major share in total
ICT production (94 percent) is from the services sectors in
the form of IT-ITES, and the remaining (6 percent) from
manufacturing sector. In the total services sector GDP,
ICT service sector share is 10 percent up from 6 percent in
2000-01. However, in total organized manufacturing
sector GDP, the ICT manufacturing sector contribution
has remained nearly constant around 2 percent since 200001. It is worth noting that the growth of ICT sector in India
is largely export driven, which, in turn, has risen from
$17.7 billion in 2004-05 to an estimated $ 69 billion in
2011-12 (NASSCOM, 2012).
Further, all constituents of the manufacturing ICT,
consumer electronics, industrial electronics, computers,
have recorded big jump in their respective production
level. For instance, as shown in Table 2, the total
electronic production increased up from Rs. 42,700 Crore
in 2003 to 92,130 Crore in 2008, and that of the software,
both for domestic market and export, has also gone up
significantly from Rs. 70,500 Crore to Rs. 2,58,000 Crore.
In other words, the total ICT production has trebled in
2008 since 2003. Further, within the ICT services,
telecommunications, internet and ITES have also moved
on higher growth trajectory (this is discussed below in
greater detail).
1.1.1: Telecommunication: The Underlying Factors for
its Development
Telecommunication, a component of ICT, is one of the
oldest modes of communication in the world. In the past
two decades, the sector has grown by leaps and bound
across the world. Theoretically, demand for services in
general and telecommunication in particular rises with
increases in GDP; and if the process continues it takes the
economy on a higher ladder of growth and development.
Indian economy is also passing through the same stage of
process. The growth trend of the telecommunication sector
is discussed below.
As being reported in many reports of the DOT, India is
one the fastest growing economies in the world in the
telecom network, given its broad population and
development potential. Airtel, Vodafone, Idea, Reliance,
Tata, Docomo, BSNL, Aircel, MTNL, Loopmobile are the
major operators in India. BSNL, a public sector telecom
company in India, is the 7th largest telecom company in
world.

ISSN: 2319-4413

In India, the telecommunication sector has been an


important source of the overall growth of the ICT sector.
The International Telecommunication Union (ITU) has
ranked India, the second largest mobile market in the
world after China, at 116 in its ICT Development Index
for 2010. As shown in Table 3, in the last couple of years,
the total number of wire line (or basic phones) has
increased many fold but decreased thereafter since 2010
from 37 million to 32 million in 2012. On the other hand,
the total number of mobile phones (or the wireless phones)
has increased phenomenally since 2000. For instance,
during the last three years it increased exponentially from
580 million in 2010 to 919 million in 2012.
Another important pattern observed in the growth and
development of telecommunications sector is its regional
distribution. For instance, as per the latest NASSCOM
Report (2013), share of rural telephones in total telephones
has increased steadily over the years from 16 per cent in
2004 to 34.81 per cent in November 2012, and is expected
to have increased further in the last two year. Among
many, declined average per minutes call cost of different
cellular phones resulting from the competition among
different players is the reason for this (WEF, 2011).
Telephony introduced in India in 1882. The total number
of telephones in the country stands at 951 million in 2012,
of which 919 million are mobile phone subscribers.
Surprisingly, in the wireless segment, 4.90 million
subscribers were added in October 2013. The wire line
segment subscriber base stood at 29.08 million. Indian
telecom operators added a staggering 227.27 million
wireless subscribers in the 12 months between Mar 2010
and Mar 2011 averaging at 18.94 million subscribers every
month. Putting this in a broader perspective, China which
currently possesses the world's largest telecommunications
network added 119.2 million wireless subscribers during
the same period (March 2010 - March 2011), but the
average has been 9.93 million subscribers every month (a
little over half the number India was adding every month).
So, it is easy to conclude, India might currently be the
second to China in the total number of mobile subscribers,
it (India) has been adding nearly twice as many
subscribers every month until March 2011 (ITU, 2013).
Given the growth and distribution of telecommunication in
the country, the resultant tele-density has grown to 79
percent in 2012 from 71 percent in 2011. Mobile teledensity increased by almost 18.4 percentage points from
Mar 2010 and Mar 2011 (49.60 percent to 67.98 percent),
while wireline (or baseline) subscriber numbers fell
marginally by 2.2 million. This shows that the Indian
mobile subscriber base has grown annually at 43.23
percent. However, the subscriber number hit its peak in
June 2012 and declined thereafter due to the removal of
inactive mobile telephone connections by the service
providers (NASSCOM, 2013). However, compared to the

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR)


Volume 3, No. 2, February 2014

tele-density in other developed countries still there is a


long way to go.
Over the years, mobile application has come a long way. It
is m-powering people by delivering numerous ICT
applications in education, health, banking, environment
and business. As per the latest ITU report, in 2013, the
total number of mobile subscription in the world has
increased from 2 billion in 2005 to 6.8 billion in 2013 (till
March). Out of this, more than half belong to the Asia
Pacific Region. The mobile density (number of mobile
phone per 100 population) is found to be the highest in the
CIS countries (175), followed by developed countries
(128), Europe (126) and America (109). The least is found
in Africa (63) and Asia and Pacific Region (89) and
developing countries (89).
1.1.2: Internet:
Like telephones, internet growth has also witnessed an
impressive trend. For instance, the number of internet
subscribers has increased rapidly from 0.18 million in
2005 to 19.69 million 2011. Similarly, the number of
broadband subscribers has grown from 8.77 million in
March 2010 to about 10.71 million in November 2010.
However, compared to the growth rate of telephones it
moved slowly. Introduction of BWA (Broadband Wireless
Access) or 3G services has helped the enhancement of the
internet penetration and growth of broadband subscribers.
Wi-Max has also been making headway in this regard. In
developing countries like India, the wireless broadband
internet access remains the strongest growth sector a
growth rate of 160 percent between 2009 and 2010. In
2010, 154 economies worldwide launched mobile
broadband or 3G networks. Telecom Regulatory Authority
of India (TRAI) is targeting 100 million broadband
subscribers by 2014. With 205 million base in 2013
(October) and registering a year to year growth rate of
over 40 percent, the number of internet users has become
the third largest in the world after China and USA
(IAMAI, 2013). It is expected that in June 2014, it will be
243 million, with this India will over-take USA. With
more than 300 million, China leads India. It is surprising
that it took almost a decade to reach to 100 million from
10 million but only three year to reach 200 million. It
shows the robust demand for internet in all walks of life,
social, economic and political. Another interesting fact is
the growth of active internet users in rural India, which
registered a growth rate of 58 percent in 2013 (June) on a
year to year basis. It is also found that more than 50
percent of the internet users in the urban area use internet
daily. In rural India, 70 percent of active internet users all
access internet using mobile phones, while 32 percent use
internet only through mobile. The community service
Centre and cyber cafs are the main point of access for 40
percent of them.

ISSN: 2319-4413

Despite this, the total number of internet connection is


lower as compared to the advanced countries in the world.
In 2013 (March), there were 165 million internet
connection in India, of which 85 percent (140 million)
were mobile internet connections (ITU, 2013).
The internet penetration in rural areas has seen an all-time
high in 2011. In a survey conducted by Internet and
Mobile Association of India (IAMAI), the total number of
active internet users in rural area has risen by 98 per cent
to touch 24 million by the end of 2011 from 12.1 million
in December 2010. The survey said that the claimed
internet user category is set to grow by 96 per cent to
reach 29.9 million by December 2011 from 15.2 million in
December 2010 1.
A further analysis of the growth trends shows that the
private sector has played a crucial role in the telephones
and internet growths in India. For instance, its share total
production of telephones and internet increased to 84.5 per
cent in 2010 from a meager 5 per cent in 1999 (Economic
Survey, 2011). Since the introduction of Broadband
Policy, 2004, a host of measures have been initiated to
further promote and develop the broadband penetration in
the country.
1.1.3: IT and ITES (IT Enabled Services)
Today, the only reason behind India being known as a
knowledge economy world over is the growth and
innovation in ITES. It has four major components: IT
services, business process outsourcing (BPO), engineering
services and R&D, and software. BPO is replaced with
BPM (Business Process Management). Over the years, ITITES sector has become growth engine of the economy a
whole in general and the services sector in particular,
through it contribution in total GDP, total employment,
and total exports. The industry has also helped to expand
the education sector significantly. For instance, the top
seven states in India that account for about 90 per cent of
total sectors exports have six to seven times more colleges
than the other States. However, there is no statistical base
to conclude this. The ITES industry has registered a robust
growth trend since 2004-05. Embracing the turmoil phase
of world-wide depression during 2009-11, the industry has
managed to grow at a double digit rate. More than 200
MNCs and GIC are doing business from India in 2012-13.
As far as the sources of growth are concerned, it is found
that of the total domestic market of Rs. 1533 billion, 60
percent is in the form of IT services, software products and
BPM. BPM has grown at 17 percent in 2012-13. With 12.5
1

By definition,active users are those, who have used the


internet at least once in the past one month, and the
claimed internet users are those, who have used the
internet sometime but not necessarily in the past one
month.

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR)


Volume 3, No. 2, February 2014

percent growth, share of BPM in total export has increased


to 24 percent in 2012-13. According to the latest
NASSCOM Report (2013), IT service export is the fastest
growing segment, growing at 14 percent CAGR during
2008 to 2012. Indias Outsourced Software Product
Development (OSPD) export crossed billion dollar mark
in 2010-11, with a CAGR of 15 percent since 2008. It is
expected to grow at 17 percent in 2011-12. OSPD offers
services in the form of extended
marketing team for the
customers.
In the last couple of years, high end-value work has been a
focus area of most ITES-BPM companies. For instance,
share of knowledge process outsourcing (KPO) services
such as market/business research and analytics has
increased from 10 percent in 2007 to 15 percent in 2009
and further to 17 percent in 2012 (Planning Commission,
2011). It is also seen that services like CAD/CAM
designing, engineering process outsourcing (EPO) services
rose from 1.0 percent in 2007 to 3.0 percent in 2012.
Similarly, share of legal process outsourcing (LPO) and elearning services has increased from 4.0 percent and 6.0
percent respectively in 2007 to 7.0 percent and 8.7 percent
in 2012. Emerging technologies such as cloud computing,
mobility, social media, and big data and analytics are on
the on the forefront of the industry. The latest NASSCOM
Report shows that the Indian BPM market is set to change
from a linear model to differentiated model of functioning.
This paradigm shift is due to redefined client market.
As far as the regional distribution of IT and ITES
companies is concerned, NASSCOM Report (2013) shows
that in 2009, 14.6 percent of the companies were having
operations in Bengaluru compared to 14.0 percent in 2008.
Chennai, on the other hand, was the next most preferred
destination with 13.1 percent share in 2009. The top five
centers where companies had their offices/delivery centers
were Bengaluru, Chennai, Mumbai, Pune and Hyderabad.
Another noteworthy revelation of the study was that
Gurgaon, which ranked fifth in terms of offices of
companies in our 2008 survey, slipped to the eighth rank
in 2009. Tier II cities such as Noida, Ahmedabad, Kochi
and Mangaluru remained at the same rank as in 2008 and
occupied the ninth, tenth, eleventh, twelfth and thirteenth
positions, respectively. The development of tier II and tier
III cities as future delivery centres is likely to boost the
cost competitiveness of ICT companies.
There are a host of factors which directly or indirectly
helped the sector moved on higher growth trajectory not
only in terms of revenue but also on the employment front.
These includes lower wages, huge base of English
speaking manpower, favorable business and regulatory
environment and effective telecommunication network,
among many others.

ISSN: 2319-4413

1.2: SOURCE OF ICT GROWTH IN INDIA:


In the last couple of years, ICT sector has grown by leaps
and bound in the country. It is interesting to analyse the
sources the led o such an impressive rise in ICT sector
growth. These, domestic demand and exports, are
discussed below.
1.2.1: Domestic Demand
As evident from Table 5.6, overall size of domestic
demand, comprising hardware, software and services (ITBPM) recorded $11.7 billion in 2007-08 increased to $19
billion in 2011-12. Banking, financial services and
insurance (BFSI), manufacturing, railways, telecom, and
government are the key vertical markets driving growth in
domestic IT spending across categories which include
hardware systems, networking, storage, security,
enterprise application products and related services.
As per Economic Survey (2012-13), domestic demand has
been shifting from hardware towards a solutions-oriented
approach with high value added. This is backed by
improved quality, high investment in man power and a
competitive R&D environment has helped them gradually
move up in value chain. Increasing number of Indian
brands, such as Info-vision, HTMT Global Solutions and
Bharti Airtel are investing in quality customer care and
gradually adopting global practices in enhancing domestic
market size. In any market based economy, customer
holds the key of growth. In India, it is found that over the
years, increasing market competition is also driving the
public sector organizations towards BPM. For instance,
Air India has outsourced its domestic customer service
operations to third-party providers; similarly the Indian
Railways has announced its plans to establish Railway
Enquiry Franchisees across the country. The success of
these early initiatives by the public sector is of critical
importance to the domestic BPM sector.
As per the OECD Report (2012), the Indian hardware
segment mostly caters to the domestic market. It
accounted nearly 49 percent of total domestic IT-BPM
spending in 2010. Personal computers, laptop, notebooks
and servers are the leading hardware spending items in
India. Most multinationals companies have established
plants in India. India competes with China as a hub for
original equipment manufacturers (OEMs). Over the years
various policy initiatives have been introduced to improve
the investment climate and to remove constraints in
hardware production in the country.
1.2.2: External Market:
Indian firms have become important competitors in world
markets. In the last couple of years creasing competition
has forced firms to deliver world class products and
quality services. As shown in Table 4, a major chunk (75
percent) of the total IT-BPO revenue $ 87.6 billion in
2011-12 s contributed by export. It increased at an average

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Volume 3, No. 2, February 2014
growth rate of 14.2 percent during the 11th Plan Period,
and at a 16.4 percent in 2011-12. USA with 60 percent
share remains the largest export market for Indian IT/BPM
services. Over 600 MNCs have been sourcing product
development and engineering services from the centers in
India (NASSCOM, 2013). Banking, financial services and
insurance (BFSI) have been the largest vertical sector in
the ITES/BPM services export domain accounting nearly
40 percent of the ITES export revenue in 2009-10.
There are seven largesized players in India with revenue
more than $ 1 billion and employment to more than 40000.
Similarly, 75-80 mid-sized players, with revenue between
$100 million to $1 billion, and 300 to 350 emerging
players are present in the country. Tata Consulting
Services(TCS), Infosys and Wipro are the top three
exporters (see Appendix A that lists top 15 IT BPO
companies in India). TCS has launched packaged software
for the banking, insurance, securities, accounting and
health care industries. Banking software from Infosys
(Bankaway, Financle and Payaway) has been widely
adopted. Wipro Technologies has introduced Teleprodigy,
a billing system for ISPs, and Web Secure, an Internet
security package. In addition to this, many smaller yet
highly specialized Indian firms are developing software in
banking, financial and accounting in the U.S., U.K. and
other countries of Europe. While the first two remain the
dominant markets for ITES exports (around 90 percent of
the total) in 2010-11 (see Appendix B for the mains ICT
companies and their areas of specialization).
As per OECD (2012), in the last decade India has been the
leading source for offshore service supply, which is
estimated to account for 65% of the global industry in
offshore IT and 46% of the global BPO industry. This
includes finance and accounting (F&A) services, customer
interaction services, human resource administration
(HRA) and a wide range of other specific services. The
Indian BPO firms include InfoTech, Mindtree Consulting,
NIIT Smart Serve, Perot Systems, Hewitt Associates, and
Infinite Computer Solutions. MNCs are setting up third
party captive units for data analysis and data modeling
(NASSCOM, 2011). Callcenters, insurance claims
processing, legal databases, digital content development,
online education, medical transcription, data digitization,
payroll/HR services and web services are other products
where India has started specializing in the world market.
Further, export of electronics hardware also increased
rapidly but not as fast as imports (OECD, 2010).
Celetronix, Hewlett Packard India, Samsung, VXL
Instrument, Bacro Electronic, L.G. Electronics, Zenith
Computers, and WEP Peripherals are amongst the top
exporters. With a very high growth of 118 percent (121
percent in $ terms), uninterrupted power supply (UPS) has
emerged as the top export item. Colour television, which
was in fifth position in 2004-05 registered high growth of
101 percent (104 percent in $ terms) moving to fourth

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position in the last couple of years. The other major


export items include CD-recordable, memory cards,
picture tubes, DVDs, medical instruments, connectors and
clocks/watches. Computer software and services
contributed 91.6 percent of total ICT exports; the other 8.4
percent is from the electronics and hardware segment.
1.3: Variations in State-Level E-readiness and S&T
Capabilities
There are wide differences found across Indian states in
terms of their IT and S&T capabilities. The IT sector
development paves the way for overall growth and
development of the states. Until recently, 90 percent of the
total direct employment in IT was confined to seven
leading locations Bangalore, Mumbai, NCR (National
Capital Region), Hyderabad, Pune, Kolkatta and Chennai.
Bengaluru continues to hold the title of IT Capital of
India and is described the window to new global frontier.
According to NASSCOM, software export has been
around $ 1.4 billion in 2009, an increase of 23 percent
from previous year. Hyderabad, the second IT hub of India
is also called as Cyberabad or HITEC City. HITEC
stands
for
Hyderabad
Information
Technology
Engineering Consultancy City. Similarly, the others cities
also have emerged in a big way in the past decade.
The National Council of Applied Economic Research
(NCAER) developed a state e-readiness index by
including three broad indicators: IT environment,
readiness of individuals and usage, and using multiple
stages Principal Component Analysis(PCA). The ereadiness of all states and territories is presented in Table
5. In the study, 21 states have been grouped according to
their level of science and technology development. Delhi,
Goa, Tamil Nadu, Kerala and Andhra Pradesh have the
most advanced status, and are ranked highest with an
S&T score above0.70. The more advanced states are a
step below with scores ranging between 0.42 and 0.70.
These include Maharashtra, Karnataka, Gujarat,
Uttaranchal and Punjab. The third less advanced states
are those with S&T Index scores of between 0.16 and 0.42
including West Bengal, Assam, Haryana, Himachal
Pradesh, Orissa and Uttar Pradesh. Finally, at the bottom
of the S&T ladder are the least advanced states with
scores less than 0.16, Chhattisgarh, Bihar, Jharkhand,
Madhya Pradesh and Rajasthan 2.
Further, to create investor friendly opportunities, the
Ministry of Communications & Information Technology
in the Annual report, 2010-11 stated that the Government
has decided to set up Information Technology Investment
Regions (ITIRs) offering superior infrastructure and
investment friendly policy environment across the country.
2

See Appendix C that lists cities categorized as


challengers, followers and aspirants, based on their ICT
infrastructure development.

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10

International Journal of IT, Engineering and Applied Sciences Research (IJIEASR)


Volume 3, No. 2, February 2014

Under the new policies, all Indian States / Union


Territories can set up integrated townships for facilitating
growth of IT/ BPO and other industries with world class
infrastructure.
Karnataka, Andhra Pradesh, Orissa and Tamil Nadu are
the first four states to take the initiatives in sending
proposals to the Government for setting up IT Township
Facilities.
Karnataka is offering all the infrastructure facilities and
over 55 MNC's have signed Memorandum of
Understanding (MoU) for the same. The Andhra Pradesh
Government is all set to promote ITIR in an extent of
50,000 acres that would assist in increasing the State IT
exports to the tune of $ 52 billion and also increase the tax
revenue by $ 6.65 billion.

1.4: EMPLOYMENT IN ICT


Among all, the ICT sector has registered an unprecedented
high employment growth in double digit. Eventually, it
has been become an important source of overall
employment generation in general and total services
employment in particular. The nature of employment
generation in the sectors is both direct and indirect in the
ICT using goods and services sectors. From the data
analysis, it is found that 1 direct job generates 3 indirect
jobs. For instance, as evident from Table 6, the former has
gone up from 0.8 million in 2004 and
1.62 million
in 2007 and to 2.5 million in 2010-11. As per the
NASSCOM Report (2013), in 2012, the BPO/ITES has
generated 2.8 million direct jobs opportunities and 8.9
million indirect jobs (up from 8.3 million in 2010-11),
which has been in diverse fields such as commercial and
residential real estate, retail, hospitality, transportation,
and security. For instance, as shown in Table 7, the
percentage of enterprises using computers from 66 percent
in 2005-06 to 73 percent in 2007-08, a trend witnessed in
both rural and urban areas. Though all larger enterprises
(with employment size 250 plus) use computers; whereas
in the informal sector enterprises (with employment size
0-9) with low level of computer use (only 37 percent).
Hence, there is a huge potential for further growth of
computers in India particularly in the informal sector.
Not only just the employment generation, earning in the
ICT sector is found to be relatively higher. In one of the
study on the earning of IT professionals conducted by
V.V. Giri National Labour Research Institute (whose
results are shown in Table 8), it is found that in 2003 more
than 70 percent of the software professionals received
annual income of more than 2 lakhs and 8 percent in the
annual slab of 6-10 lakhs. Surprisingly, 80 percent of the
hardware professionals were in the slab of 2-4 lakhs per
annum. However, in the ITES segment of the ICT as high
as 37 percent were in the lowest slab of 50,000 to 1 lakh,
equal number in the next slab 1-2 lakhs and only 3.3

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percent in the highest income slab.


India has a very large pool of labour, with nearly 60
percent of its population between the ages of 15-59, and
more than 50 percent below the age of 25. Despite the lack
of universal literacy, the Indian education system creates a
large number of IT professionals. At the current levels of
employability, India has the largest pool of suitable
offshore talent, accounting for 28 percent of the total
suitable pool available across all off shore destinations
(OECD, 2010). The study further found in 2003, majority
of hardware professional (52 percent) were having
educational qualification B.Tech (Electrical and
Electronics), whereas 47.5 percent of software
processional were MCA (Master in Computer
Applications). These qualifications among ITES are only
11 percent and 16 percent respectively (see Table 9 for
more detail). However, as shown in Table 10, majority of
the workers (86 percent) in the ICT sector are with some
technical education, which in the hardware and software
segments is nearly 95 percent and 63 percent in ICTES
sector.
Despite this, as evident in Table 11, the ICT sector is
suffering acute shortage of trained manpower supply. For
instance, in 2008 the IT export services faced shortage of
almost 1, 00,000 IT professionals, and almost 1, 40, 000 in
the ICT product and technology services 3. Nevertheless,
according to a research report IT-BPO Sector in India:
Strategic Review 2011, published by NASSCOM. The
workforce in Indian IT industry will touch 30 million by
2020.

1.5: GOVERNMENT POLICY, FUTURE


VISION AND THE CHALLENGES AHEAD
Development of IT sector is not a latest phenomenon in
India; it dates back to the late 60s when the government of
India initiated a series of software export policies
(Schwere 1987, 1992; Sen 1995; Heeks 1996; OECD
Information Technology Outlook 2010; Kumar and Joseph
2005; Mathur 2007 a, b). Eventually, various policies were
also started during the 1970s and 1980s with the objective
to protect domestic hardware through restricted
competitiveness. It was in the 1986 the government
announced a new policy to develop a strong software
sector, followed by a World Market Policy in 1988 and
introduction of Software Technology Park from India
(STPI) scheme. In addition to this, National Task force on
Information Technology and Software Development
(NTITSD) was established in 1998 to formulate long-term
plans and remove impediments to the growth of the IT
sector. In 2000, the formation of the Ministry of
Information Technology was another step in promoting

See Table 12 for the segregation of total ICT supply In


India during 2004-08.

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these initiatives. A Task Force on Human Resource


Development was established to develop long-term
strategies to increase the number of well-trained IT
professionals. More recent initiatives include upgrades to
the Education and Research Network (ERNET)
connecting various universities and regional engineering
colleges (RECs), lowering customs duties on IT products,
allowing 100% foreign investment and passing the
Information Technology Act, 2000.
By encouraging foreign investment, policy makers in India
have placed special emphasis on ICT as a major source of
growth and development of the country 4. The Indian
ITES-BPO sector has benefited from this approach, with
firms enjoying minimal regulatory and policy restrictions
along with other broad range fiscal incentives
(NASSCOM, 2010). However, the telecommunications
industry is subject to the oversight of two different
regulatory/administrative bodies (the Department of
Telecommunications and Telecom Regulatory Authority
of India). Further, the Indian ICT industry is characterized
by relatively flexible labour laws with mostly non-union
workers due to the better working conditions, salaries and
other job-related opportunities compared to employees in
other sectors. Copyright protection and cyber laws were
included in the comprehensive Information Technology
(IT) Act introduced in2000.
The 11th Plan states that: our vision is to make India the
most preferred destination for providing the IT and ITES,
and to create the required system to demonstrate the full
potential of Indian skill and enterprise in this vital sector.
The future of ICT in India will depend on how effectively
it meets the challenges related to its continued
competitiveness. Broadly, it includes increasing
competition, rising costs, talent shortfall, infrastructure
constraints, increasing risk perception and protectionism in
key markets. No doubt the government has been
supporting the IT and ITES sector in many ways. In the
2010-11 Budget policies like government expenditure for
improving IT infrastructure and delivery mechanism,
reduction in surcharge from 10 per cent to 7.5 per cent for
IT companies and Governments e-Governance plan 5.
The government has also initiated new e-governance
projects for education, health, public distribution system
and postal services. This will ensure the common man
access to quality education, cost efficient and quality
health care and postal services at affordable costs. The
number of public services available to citizens in
electronic mode will be expanded through the Electronic
Delivery of Services (EDS) Bill, approved by the union
4

For the detail of sectors attracting FDI in India see Table


13.
5
For the whole list of the major ICT programs sponsored
by government see Table 14.

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cabinet in 2011. In order to leverage the rapid growth in


penetration of mobile technology and connectivity and
also to ensure accessibility to ICT services to the common
man, public services under all e-Governance projects will
be delivered through mobile devices like mobile phones
and Aakash tablets. Further, basic banking services like
cash withdrawal, cash deposit, balance inquiry, and
transfer of money from one account to another will be
extended to every panchayat through the Common
Services Centers (CSCs) and money transfer facility to
every village by December 2013.
However, there are many roadblocks in the way to
becoming India a knowledge powerhouse of the world.
With variety of new career options available globally,
many industries especially ICT related are facing acute
shortage of skills. Further, changing job profiles require
higher skill levels. The pervasive change in technology is
also a major reason for skill shortage, with skills going
obsolete in less than the time it takes to learn them. Also,
the educational institutions are not fully equipped to churn
out industry-ready candidates. As evident in Table 5.9,
that shows the manpower requirement in IT-ITES sector,
the biggest challenge is the human resource. No doubt,
India is producing a large number of ICT professional,
despite this, the requirement is on the rise.
The challenge of identifying ways and means to counter
the skills gap starts with careful research and planning for
the economy as a whole. This calls for integrated training,
talent management and succession planning programs that
go hand in hand with efficient recruiting and retention
practices for not only private organizations but also for the
government departments.
Apart from this, there are other issues that need immediate
attention. These include: shifting from low-end services to
high-end services like programming in the light of
competition in BPO from other countries; change in
policies in some developed countries like UK to employ
locals only; addressing data protection issues as half of
offshore work does not come to India; agreements with
target countries to resolve the social security benefits
issues; and increasing the coverage and depth of IT and
ITES services in the domestic sector.
Further, limitation of domestic market adaptation of ICT
has always been as a cause of worry. Due to this the
primary focus of most MNCs in the sector has been
external market like US and EU. Hence, ever since ICT
emergence export has been the main driver of its growth in
India. No doubt in some sectors like banking, insurance,
retail, telecom, education, media, environment,
entertainment, and healthcare its use on the rise.
According to NASSCOM, Perspective 2020, increasing
ICT spending and globalization of Indian corporations is
leading to maturisation of domestic demand in terms of

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product complexity, delivery flexibility and services levels.


Going forward, these trends are likely to drive domestic
consumption.

government and administration. It fosters socio-cultural


development and the concept of global village &
borderless society.

R&D spending by Indian companies is at far lower level


than MNCs, which are spending as high as 30% of their
revenue in marketing and sales, something practically
impossible for Indian companies.
Another major thrust area which requires immediate
attention is infrastructural bottlenecks, both social and
physical. Power shortage, small bandwidth are also the
immediate challenges.

The degree of contribution of the ICT to economies and


societies vary according to their stage of development
(developed, developing or underdeveloped), nature of
political
economy,
availability
of
appropriate
complementary infrastructure, etc. Irrespective of these
inherent differentials, ICT is catalyzing the process of
change in a manner which reduces the socio-economic and
political inequalities between rich and poor, educated and
uneducated, rural and urban, and men and women across
all countries.

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:

With a consistent growth rate of around 25 percent, ICT


has led India become a global knowledge power. Even
during the economic slow-down, the industry maintained
it momentum of high growth rate. The domestic market
size has trebled during 2003-08. According to the recent
report by IDC, the IT industry in India has reached to the
next level of ICT evolution termed as Growth Phase 2.0,
which will enable the industry leverage and consolidate its
infrastructure built during the earlier phase. According to
the NASSCOM Perspective, 2020, increasing ICT
spending and globalization of Indian companies is leading
to maturation on Indian demand in terms of product
diversification, delivery flexibility and services level.
It has revolutionized the development process itself by
influencing its manifold dimensions be it economic, social,
political, cultural, environmental, ethical, behavioral, etc.
The contribution of ICT to Gross Domestic Product
(GDP), employment generation, market diversification,
operation of free markets, foreign exchange earnings,
poverty reduction, environmental development, etc. are
testimonies to what extent it influences the economy. On
the political front, ICT facilitates through e-governance,
the promotion of responsive, accountable & effective

i-Explore International Research Journal Consortium

[1] Barras, R. 1986. Towards a theory of Innovation in


Services, Research Policy, Vol.15, pp.161 73.
[2] Bresnahan, T. F. and M. Trajtenberg. 1995. General
Purpose Technologies: Engines of Growth? Journal of
Econometrics, Vol.65, pp. 83 108.
[3] Bresnahan, T. F. et. al. 2002. Information Technology,
Workplace Organization and the Demand for Skilled
Labor: FirmLevel Evidence, Quarterly Journal of
Economics, Vol.117, pp. 339376.
[4] Brynjolfsson, E. and L. Hitt. 2000. Beyond Computation:
Information Technology, OrganizationalTransformation
and Business Performance, Journal of Economic
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[5] Cainelli, G. et. al. 2004. The Impact of Innovation on
Economic Performance inServices, Service Industries
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[6] Cameron, G. 1999. Why did UK Manufacturing
Productivity Growth Slow Down in the 1970s and Speed
Upin the 1980s? Economics Papers 9924, Economics
Group, Nuffield College, University of Oxford.
[7] Cohen, W. and D. Levinthal. 1989. Innovation and
Learning: The Two Faces of R&D, Economic
Journal,Vol.99, pp. 569- 596.
[8] Doms, M. et. al. 2004. IT Investment and Firm
Performance in U.S. Retail Trade, Center for Economic
Studies Working Paper, CESWP0214, U.S. Bureau of the
Census, Washington, DC.
[9] Evangelista, R. 2000. Sectoral Patterns of Technological
Change in Services, Economics of Innovation, Economics
of Innovation and New Technology, Vol.9, pp.183221.
[10] Freeman, C. and F. Louca. 2002. As Time Goes By:
From the Industrial Revolutions to the Information
Revolution, Oxford University Press, Oxford.
[11] Freeman, C. and C. Perez. 1988. Structural Crisis of
Adjustment. In Dosi G., C. Freeman. and R. Nelson,
(ed.), Technical Change and Economic Theory, Printer
Publisher, London.
[12] Gershuny, J. I. and Miles. 1983 The New Service
Economy: The Transformation of Employment in
Industrial Societies, Pinter, London:
[13] Heeks, R. 1996. Indias Software Industry: State Policy
Liberalization and Industrial Development, Sage
Publication, New Delhi.

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Volume 3, No. 2, February 2014

[14] Government of India, Various Years. Economic Survey,


2011-12.
[15] Government of India, 2011. Annual Report, Ministry of
Communications
and
Information
Technology,
Department of Information Technology.
[16] Government of India, 2011. 11th Five Year Plan, 2007-12,
Planning Commission, New Delhi.
[17] Indo-Italian Chamber of Commerce and Industry, 2006.
ICT Industry of India, November.
[18] Kumar, N. and K.J. Joseph. 2005. Export of Software and
Business Process Outsourcing from Developing
Countries: Lessons from Indian experiences, Asia Pacific
Trade and Investment Review, Vol. 1, No, 1, April.
[19] Mathur, S.K. 2007. Indian IT and ICT Industry: A
Performance Analysis Using Data Envelope Analysis and
Malmquist Index, Global economy Journal, Vol. 7, No.
02, pp. 1-40.
[20] NASSCOM-Crisil, 2007. The Rising Tide: The Output
and Employment Linkage of IT-ITES, NASSOM, New
Delhi.
[21] NASSCOM, Various Years. Annual Report, Delhi.

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[22] National Council of Applied Manpower Research


(NCAER), 2005. India, E-Readiness Assessment Report,
New Delhi.
[23] National Sample Survey organization (NSSO): Various
Rounds, Government of India.
[24] OECD, 2010: The Information and Communications
Technology in India: Performance, Growth and Key
Challenges, June, Paris, France.
[25] OECD, 2010: Information Technology Outlook, Paris,
France.
[26] Silverberg, G. and L. Soete. 1993. Technical change and
economic theory. Pinter Publishers, London.
[27] Schwere, R. 1987. Software Industry in Third World:
Policy Guidelines, Institutional Options and Constraints,
World Development, Vol. 15 (10/11), pp. 1249-67.
[28] Sen, P. 1995. Indian Software Exports: An Assessment,
Economic and Political Weekly, Vol. 30, No. 7&8, pp.
2053-2058.
[29] World Economic Forum, Various Years: Annual Report.

Table 1: Gross Domestic Product (GDP) of ICT Sector (all figures are in Rs. Billion at Current Prices unless otherwise
mentioned)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07


19250
20977
22614
25382
28777
32824
37794

GDP (at FC)


(i) Computer related Services
(in brackets: % of total ICT
service)
269(46) 339(47) 414(52) 546(55)
(ii) Other Communication (in
brackets: % of total ICT
service)
318(54) 381(53) 376(48) 450(45)
B. Total ICT services sector
GDP (i) + (ii)
587
720
790
996
C. ICT org mfg GVA
69
75
94
101
D. Total ICT Sector GDP (B)
+ (C)
656
795
884
1097
E. Manufacturing (mnf.)
sector GDP
3004
3153
3460
3885
F. Services sector GDP
9713
10796
11909
13399
G. Share of ICT mfg. to mfg
sector GDP (in %)
2.3
2.4
2.7
2.6
H. Share of ICT services GDP
to Services sector GDP (%)
6.0
6.7
6.6
7.4
I. Share of ICT sector to total
GDP (in %)
3.4
3.8
3.9
4.3
J. Share of ICT services to
total GDP (in %)
3.0
3.4
3.5
3.9
K. Share of ICT mfg. to total
GDP (in %)
0.4
0.4
0.4
0.4
L. Share of ICT mfg to total
ICT GDP (in %)
10.5
9.4
10.6
9.2
M. Share of ICT services to
total ICT GDP (in %)
89.5
90.6
89.4
90.8
Source: Department of IT, Ministry of communication and IT, GOI.
Note: Figures in brackets show the percentage share in Total ICT Services.

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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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Table 2: Electronic and IT production (Rs Cr)


Items
2003
2004
2005
2006
2007
Consumer Electronic
14,850
16,500
17,500
19,500
21,950
Industrial Electronics
5,980
8,300
8,600
10,100
11,530
Computers
6,600
8,680
10,500
12,500
15,100
Communication and Broadcasting
Equipments
5,150
4,770
6,300
9,200 16400**
Strategic Electronics
2,670
2,850
3,070
4,500
5,400
Components
7,450
8,700
8,530
8,600
9,420
Sub-Total
42,700
49,800
54,500
64,400 63400**
Export of Software
55,000
75,000
97,000
132,025
158,550
Domestic Software
15,500
20,500
27,000
35,150
44,510
Total
113,200
145,300
178,500
231,575
203,060
Source: Annual Report, 2008-09, Department of IT, Ministry of Communication and IT, GOI.

2008
25,140
12,530
14,090
24,180
6,560
9,630
92,130
203,330
54,670
350,130

Table 3: Net addition of Telephone and Tele-density during 2010-2012 (Millions)


Connections
2010

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

Table 5: Level of S&T advancement of different States, 2004-05


Most advanced states
(S&T index >0.70)
Delhi
Goa
Tamil Nadu
Kerla
Andhra Pradesh

More advanced states


(S&T index 0.42-0.70)
Maharashtra
Karnataka
Gujarat
Uttaranchal
Punjab

Less advanced states


Least advanced states
(S&T index 0.16 -0.42)
(S&T index< 0.16)
West Bengal
Chattisgarh
Assam
Bihar
Haryana
Madhya Pradesh
Himachal Pradesh
Jharkhand
Orissa
Rajasthan
Uttar Pradesh
Source: NCAER, also reproduced in OECD, Directorate for Science Technology and industry Committee for
Information, Computer and Communications Policy, June, 2010.

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Table 6: Employment in ICT in India


Sectors
2004
2005
IT Services
215000
297000
IT BPO
216000
316000
Engineering Services, R&D and software Products
81000
93000
Domestic Market
318000
352000
Total
830000
1058000
Source: NASSCOM, Annual Report, 2010.

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2006
398000
415000
115000
365000
1293000

2007
562000
545000
144000
378000
1629000

Table 7: ICT Usage Indicators(by no. of Employees)


Year

Total enterprises %using computer


Rural Urban

% using computerwith no.of employees


Total

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

Table 8: Earning of Workers across Industry Segment in 2003


Salary per Annum
Hardware
Software
ITES
Total
50000-1Lakh
0
10.81
36.67
1-2 Lakh
13.33
18.92
36.67
2-4 Lakh
66.67
35.14
20
4-6 Lakh
20
27.03
3.33
6-10 Lakh
0
8.11
3.33
Total
100
100.01
100
Source: V. K. Verma and S. Sasikumar, ICT and Decent Work, V.V.Giri National Labour Institute, 2004.

18.29
24.39
35.37
17.07
4.88
100

Table 9: Technical Education of Workers by Industry Segment


Hardware
Software
ITES
Total
B.Tech (Computers)
0
15
15.79
10.47
M.Tech (Computers)
0
5
0
2.33
B.Tech (Electrical and Electronics)
51.85
15
10.53
25.58
M.Tech (Electrical and Electronics)
11.11
0
0
3.49
MCA
0
47.5
15.79
25.58
B.Tech (Others)
33.33
5
15.79
16.28
DCS
0
0
10.53
2.33
PGDCA
3.7
7.5
15.79
8.14
Others
0
5
15.79
5.81
Total
100
100
100
100
Source: Same as in Table 8.
Table 10: Type of Education of Workers
Hardware
Software
ITES
Total
Type of Education
Technical
96.43
95.24
63.33
86
General
3.57
4.76
36.67
14
Total
100
100
100
100
Source: Same as in Table 5.11.

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Table 11: Manpower demand and Supply Scenario


Total Supply
Total Demand
Numbers
(Number)
IT Services (Export)
460000
360000
IT Services (Domestic)
520000
525000
Product and Technology Services
140000
Total Demand
1120000
885000
Source: NASSCOM, 2009.

Gap
100000
-5000
140000
235000

Table 12: Indian IT Labour Supply: IT software and services


2003-04
Degree (four years)
139 000
Diploma & MCA
177 000
(three years)
No. of engineering
316 000
graduates
Of which:
Engineering IT
84 000
graduates (degree)
Engineering IT
95 000
graduates (diploma)
No. of IT
179 000
Professionals
Source: NSSCOM, Annual Report 2010.

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

Table 13: Services Attracting the Highest FDI (in $ Millions)


Sectors
2009-10
Financial and Non Services
4176
Telecommunications
2539
Computer Software and Hardware
872
Housing and Real Estate
2935
Construction Activities (including road
and highways)
2852
Source: Economic Survey, 2011-12.
Note: For 2011-12, it is from April to December.

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

Table 14: Major Research Programs and Funding


Research Area
Proposed Yearly Funding (US$ Millions)
Advanced Computing
Robotic and Automation
Sensor and integrated System
Distributed Sensor and Network
ICT Securities technologies
Telemedicine, Instrumentation and Diagnostics
centre for Photonics
Centre for Molecular and Medical Imaging
Center for Mathematical and Computational Sciences
Source: Innovation Hotspot in India, TAFTIE, the European Network of Innovation Agencies, July, 2011.

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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

Top Twenty ICT Companies in


India

1 Tata Consultancy Services Ltd


2 Infosys Technologies Ltd
3 Wipro Ltd.
4 HCL Technologies Ltd
5 Tech Mahindra Ltd.
6 Patni Computer Systems Ltd
7 Mphasis an EDS company
8 Oracle Financial Services
9 Aricent Technolgies (Holdings)
10 CSC India Pvt. Limited
11 Larsen & Toubro Infotech Ltd
12 Prithvi Information Solutions Ltd
13 Polaris Software Lab Ltd.
14 Mindtree Limited
15 Mascon Global Ltd.
16 3i Infotech Ltd.
17 HSBC Software Development (I)
18 Hexaware Technologies Ltd
19 Mastek Ltd
20 Sonata Software Ltd.
Source: OECD, 2010.

Top 15 BPO Companies in


India
Genpact India Pvt. Ltd.
Tata Consultancy Services
WNS Global Services Ltd.
Wipro BPO
Aegis Ltd.
First source Solutions Ltd.
Infosys BPO
Aditya Birla Minacs
HCL BPO
EXL Service.com (I) Pvt.
HOV Services
Hinduja Global Solutions
3i Infotech Ltd.
Intelenet Global Services
24/7 Customer Pvt. Ltd.

Top 15 BPO Employers


Companies in India
Tata Consultancy Services
Infosys Limited
Wipro Technologies Ltd.
Cognizant Technology
HCL Technologies Ltd
Mphasis Ltd
Genpact Ltd
Capgemini India Pvt Ltd
Tech Mahindra Ltd 1
Aegis Ltd
Mahindra Satyam 1
Intelenet Global Services
Firstsource Solutions Ltd*
CSC, India.
WNS Global Services (P)
Syntel Ltd
Patni Computer Systems
Hinduja Global Solutions
Exl Service.com (India) Pvt
L&T Infotech

Appendix B: Area of Research of Major Companies in India, 2010.


Cryptography, Digital Geographical Solution, Mobility Network Solution,
Multilingual System, Software Engineering, technology for Emerging Market,
Microsoft Research India
4G Network Management.
Analytical and Optimization, Distribute and High performance Computing,
programming Technology and Software Engineering, Knowledge and
Information management, System management, services search industry,
IBM India Research Lab
Solution Research, Spoken web.
Services Oriented and Distributed Software Architecture; Collaborative
Technologies and Processes; Automated quality management; Data Quality
Management; Testing theory Management; testing Theory and Practice for
Accenture technology Lab,
software and System; large scale distributed workforce management
India
techniques.
Oracle India development
Grid Computing; Technology and application deployment on Linux, Java
Centre (IDC)
Application Development, Warehouse management system.
Dell
Enterprise solution, server development
Texas Instruments
Designing semi-conductor based end-to-end chips.
ST Micro-electronics
Electronic Circuitry
Intel
High end enterprise chips
Hewlett Packard
Gesture Recognition
Grid Computing; Collaborative software development; Human computer
TCS Innovation Lab
interface, services oriented architecture
Wipro Enterprises of
Excellence
.NET; Data warehouse, web services; enterprises security services
Web services; Grid Computing; Ontology; business processing management
Infosys SETLab
solution

i-Explore International Research Journal Consortium

www.irjcjournals.org

18

International Journal of IT, Engineering and Applied Sciences Research (IJIEASR)


Volume 3, No. 2, February 2014

ISSN: 2319-4413

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.

Source: Same as of Appendix B.

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