Software and Services Sector

Introduction

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The Indian Information Technology / Information Technology Enabled Services (IT/ITES) industry is a global powerhouse today, and its impact on India has been incomparable. In the last decade, the industry has grown six fold in revenue terms, and relative share to India’s GDP has increased to > 9.3 percent in FY2016-17. India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be its Unique Selling Proposition (USP) in the global sourcing market. Indian IT-ITES industry offers cost-effectiveness, great quality, high reliability, speedy deliveries and, above all, the use of state-of-the-art technologies globally.

Indian global sourcing market growth continues to outperform IT-BPM industry growth. During 2016-17, the global IT-ITeS market grew to US $ 1.2 trillion (excl. hardware) and global sourcing grew 1.7 times to reach US $ 173-178 billion. India continued as the world’s No. 1 sourcing destination with a healthy and significant share of 55%. Indian IT-ITeS industry has set up 1000 global centres in over 200 cities across 80 countries.

The Ministry of Electronics and Information Technology is coordinating strategic activities, promoting skill development programmes, enhancing infrastructure capabilities and supporting R&D for India’s leadership position in IT and IT-enabled Services.