Overview-Indian IT Services Sector:
Indian IT industry started in 1970s had a slow growth in the initial years, with most of the efforts being made by Public Sector Undertakings and other large users like defense. It started in a big way in 1984, when some real reforms were brought in by the government. However 1990s saw the real action and the Indian expertise and talent was recognised; companies started getting quality certifications like CMM which is now CMMi and had the largest share of such certifications in the world. The Indian software industry is growing at a rate of more than 50 percent a year, and the country appears to be on track to achieve IT exports of U.S. $50 billion by 2008 (Carretek n.d). The IT industry's contribution to GDP rose from 1.2 per cent in 1999-2000 to an estimated 4.8 per cent in 2005-06 (IBEF, 2007). According to Nasscom , the strength of the Indian software industry is indicated by the fact that the export revenues has grown at a Compound Annual Growth Rate of 35 %.
Advantage India:
? Largest Pool of Technical Talent
? Comparatively high exchange value
? Young working population compared to the West
? Highly educated workforce fluent in English.
? High-end technological infrastructure to connect and communicate with any part of the Globe
? Low salary compared to other countries.
? Government support for setting up companies
? Tax Holidays under STPI for 100% EOU (Export Oriented Units)
Forces driving the Industry
Three major factors affecting software industry is given below (Wilson, 2001):...