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an insight into the working of indian it industry

an insight into the working of indian it industry

An Insight into the Working of Indian IT Industry

Author : Alakananda

Date : Jan 10, 2018

Tags : Working conditions in indian it companies, It industry, It Industry Analysis, Indian Software Industry

The Information Technology revolution began in India when TATA group started a software zone called as SEEPZ in Mumbai in 1967 by collaborating with Burroughs. Since then, Indian IT industry has phenomenally grown beyond leaps and bounds and today it is one of the major contributors to exports from India. The Indian IT industry is worth 125 billion US dollars at present and it is expected to get doubled to 250 billion US dollars in 2020. With many reputed names like TCS, Wipro, Infosys, Cognizant, HCL, HP, Tech Mahindra and others, Indian IT industry has become the most favourite destination for IT & ITES outsourcing services in the world. In 2016-17, India accounted for 55% of the outsourcing done globally. Having a favourable Geographical location for outsourcing activities, and nearly four times cheaper workforce when compared to the U.S, India is the hottest destination for IT and ITES outsourcing.

Top IT Companies in India

As India is a hub to the IT and ITES industry many companies have made it to the top and have gained an impeccable reputation for themselves. The top five IT companies of 2017 are:

  1. TCS (TATA Consultancy Services)

TCS was established in 1968 and is a fully owned subsidiary of TATA group and JRD Tata was the first chairman. The CEO of TCS at present is Mr Rajesh Gopinathan. The company employs 36,000 people across 45 countries and 129 nationalities. The company boasts of a total revenue of 116,772 crores in last four quarters with a total net income of 26,094 crores.

  1. Infosys

Infosys was started in 1983 in Bangalore by MrNarayana Murthy and others. MrVishal Sikka is the current CEO of the company. The company is employing 2, 00,000 people in different countries. Its financial product ‘Finnacle’ is used by financial institutions in 84 countries. The company boasts of a total revenue of 67,915 crores in last four quarters with a total net income of 14,347 crores.

  1. Wipro

Wipro was started by Mr. Azim Premji and it entered the IT business in 1981. The company has 1, 70,000 employees across six continents of the world. MrAbidali Z. Neemuchwala is the present CEO of Wipro. The company boasts of a total revenue of 54,683 crores in last four quarters with a total net income of 8,499 crores.

  1. HCL

Mr Shiv Nadar Founded HCL in 1976. Mr C Vijaykumar became the CEO of HCL in October 2016. The company has a promising workforce of 1, 15,000 employees in more than 30 countries of the world. HCL has the credit to its kitty for developing India’s first indigenous 8-bit microprocessor based computer. The company boasts of a total revenue of 39,281 crores in last four quarters with a total net income of 7,806 crores.

  1. Tech Mahindra

Tech Mahindra was started in 1986 as a joint venture between Mahindra Group and British Telecom. Tech Mahindra is a subsidiary of $18 billion Mahindra Group and employs 1, 17,000 people in around 90 countries. The present CEO of Tech Mahindra is Mr C P Gurnani. The company boasts of a total revenue of 28,527 crores in last four quarters with a total net income of 3,192 crores.

A Glance at Indian IT Industry

Indian IT sector is catering to the domestic needs of Indian IT arena and also providing BPO services and software development services to other countries like U.S, U.K, Australia and others. The services provided by Indian IT companies for overseas companies are legal process outsourcing, insurance services, healthcare services, medical transcription, financial services, technical support, software development and other such services. But with the growing competition from China, Philippines, Eastern Europe and other countries, Indian IT companies are exploring new domains like SMAC.

Here SMAC stands for:

  1. Social (Social Media)
  2. Mobility
  3. Analytics
  4. Cloud

It is estimated that 90% of the growth is expected to come from the third platform or the SMAC from 2017 to 2020.

Indian IT sector is also focusing its interests in IT related fields like Artificial Intelligence, Machine Learning, Robotics and Internet of Things (IoT) which are coined as the technologies of the future.

Indian IT sector is also quickly adapting to the setting up of support centres for customers in the offshore model.

The IT sector is parting its way from the old model of service providing and operations. The ADM (Application, Development, and Maintenance) model is getting obsolete and the Indian IT companies are quickly incorporating the new model of ‘outcome-based billing’ and fixed contract based services.

Scope of IT Industry in India

Factors Influencing IT Growth in India:

  • Availability of highly skilled and English-speaking graduates in India.
  • Low wage structure due to the Geographical location of India.
  • The government has taken many initiatives like the building of hi-tech parks and implementation of e-governance projects.
  • The reputed global IT companies like Oracle, Google, IBM, Microsoft, Adobe, SAP and others have set up their operations in India.
  • The time zone of India is playing a major role in providing 24/7 customer support to Foreign clients and makes outsourcing projects to India feasible for other countries.
  • Major cities like Bangalore, Mumbai, Delhi, Kolkata, Hyderabad, Pune and the other tier 1 and tier 2 cities are becoming major IT centres in India. Among these cities, Bangalore is known as the “Silicon Valley of India.”

Hence, we can infer that India will surely remain as one of the top IT products & IT services providing destinations in the world in the years to come. By making use of the available facilities in developing the strengths and by improving upon the weaknesses, IT industry can reach new heights and have its rightful position in the IT industry of the world.This is the perfect time for IT companies to Invent, Innovate and Generate.

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