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It Industry In India

1. IT industry in India

During the past decade, the Indian IT industry has been experiencing a dramatic growth. It grew from Rs.4.7 billion in 1991 to Rs.755.47 billion in 2003, accounting for nearly 3% of the GDP. The revenues generated from software exports reached $10.4 billion for the financial year 2003 with a 30% growth over the previous year. The main factors which contributed to the success story of the Indian IT industry are:

-Support from the government in the form of industrial parks, which enjoy various incentives and tax benefits.

-Liberal export import policy.

-Strict quality policies adopted by the IT industry in terms of reliability, stability and maintainability by adhering to the standards laid down by the ISO 9001 or SEI/CMM or both. (Nearly 80% of the software companies in the world that have SEI/CMM level 5 are from India.)

-NASSCOM acting as the platform for all IT companies to make representations to the government on industry problems and integrating the domestic industry with the global industry.

-Infrastructure provided by DOT and VSNL.

-Conferring priority sector status on the IT industry.

-Financial banking in the form of enhanced working capital limits from financial institutions and support from venture capitalists in India and abroad.

-Keeping abreast of the latest developments in technology.

-Well-qualified, dedicated and enthusiastic professionals.

In a developing country like India, where earlier it was feared that information technology would mean men being made redundant in favour of machines, the explosion of IT created new avenues of employment in the form of exporting professional services, vending internet services, training and education, IT enabled services like medical transcriptions, back office operations, insurance, healthcare, etc. In addition, the low cost of operations is expected to bring more and more outsourcing projects to India, thereby creating more employment opportunities....