Information technology in India

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Infosys Media Centre in Bangalore, India. Infosys is one of the largest Indian IT companies.
Tidel Park, the then largest IT park in Asia when it was opened in 2000.

Information Technology in India is an industry consisting of two major components: IT services and business process outsourcing (BPO).[1] The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.7% in 2017.[2] According to NASSCOM, the sector aggregated revenues of US$160 billion in 2017,[3][4] with export revenue standing at US$99 billion and domestic revenue at US$48 billion, growing by over 13%. The United States accounts for two-thirds of India's IT services exports.[5]


India's IT Services industry was born in Mumbai in 1967 with the establishment of the Tata Group in partnership with Burroughs.[6] The first software export zone, SEEPZ – the precursor to the modern-day IT park – was established in Mumbai in 1973. More than 80 percent of the country's software exports were from SEEPZ in the 1980s.[7]

The Indian economy underwent major economic reforms in 1991, leading to a new era of globalization and international economic integration, and annual economic growth of over 6% from 1993–2002. The new administration under Sri Atal Bihari Vajpayee (Posthumus) (who was Prime Minister from 1998–2004) placed the development of Information Technology among its top five priorities and formed the Indian National Task Force on Information Technology and Software Development.

Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information Technology and Software Development:

Within 90 days of its establishment, the Task Force produced an extensive background report on the state of technology in India and an IT Action Plan with 108 recommendations. The Task Force could act quickly because it built upon the experience and frustrations of state governments, central government agencies, universities, and the software industry. Much of what it proposed was also consistent with the thinking and recommendanotions of international bodies like the World Trade Organization (WTO), International Telecommunications Union (ITU), and World Bank. In addition, the Task Force incorporated the experiences of Singapore and other nations, which implemented similar programs. It was less a task of invention than of sparking action on a consensus that had already evolved within the networking community and government.

Regulated VSAT links became visible in 1994.[8] Desai (2006) describes the steps taken to relax regulations on linking in 1991:

In 1991 the Department of Electronics broke this impasse, creating a corporation called Software Technology Parks of India (STPI) that, being owned by the government, could provide VSAT communications without breaching its monopoly. STPI set up software technology parks in different cities, each of which provided satellite links to be used by firms; the local link was a wireless radio link. In 1993 the government began to allow individual companies their own dedicated links, which allowed work done in India to be transmitted abroad directly. Indian firms soon convinced their American customers that a satellite link was as reliable as a team of programmers working in the clients’ office.

Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991, the 64 kbit/s leased line service in 1992, and commercial Internet access on a visible scale in 1992. Election results were displayed via National Informatics Centre's NICNET.

"The New Telecommunications Policy, 1999" (NTP 1999) helped further liberalise India's telecommunications sector. The Information Technology Act, 2000 created legal procedures for electronic transactions and e-commerce.

A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. On 25 June 2002, India and the European Union agreed to bilateral cooperation in the field of science and technology. India holds observer status at CERN, while a joint India-EU Software Education and Development Center will be located in Bangalore.[9]

Contemporary situation[edit]

In the contemporary world economy India is the largest exporter of IT. Exports dominate the Indian IT industry and constitute about 79% of the industry's total revenue. However, the domestic market is also significant, with robust revenue growth.[2] The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. The technologically-inclined services sector in India accounts for 40% of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce, according to Sharma (2006). According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro, and HCL Technologies.[10][11]

Major information technology hubs[edit]


Bangaluru is known as the Silicon Valley of India. [12][13] Notable tech park are Electronics City Phase I & II, ITPL, Bagmane Tech Park, Embassy Golf Links, Manyata Tech Park, Global Village Tech Park, Embassy TechVillage..


The Rajiv Gandhi Infotech Park in Hinjawadi is a ₹600-billion (US$ 8.9 billion) project by the Maharashtra Industrial Development Corporation (MIDC).[14][15] The IT Park encompasses an area of about 2,800 acres (11 km2) and is home to over 800 IT companies of all sizes.[16][17] Besides Hinjawadi, IT companies are also located at Magarpatta, Kharadi and several other parts of the city. As of 2017, the IT sector employs more than 300,000 people.[16][17]


As of 2012, Chennai is India's second-largest exporter of information technology (IT) and business process outsourcing (BPO) services.[18][19] Tidel Park in Chennai was billed as Asia's largest IT park when it was built.[20][21] Major software companies have their offices set up here, with some of them making Chennai their largest base.[19]


Hyderabad – known for the HITEC City or Cyberabad – is a major global information technology hub, and the largest bioinformatics hub in India.[22][23] Hyderabad has emerged as the second largest city in the country for software exports pipping competitors Chennai and Pune.[24][25][26] Notable tech and pharma parks are HITEC City, Genome Valley, and Hyderabad Pharma City


Chandigarh is also one of the growing international IT services and outsourcing exporters. Rajiv Gandhi Chandigarh Technology Park (RGCTP) and Phase 8b Mohali are notable tech park of the city. The Next upcoming tech parks will be world trade center.[27]


Mohali is also one of the growing international IT services and outsourcing exporters.Phase 8b, Xor Solutions, Quark city Mohali are notable tech park of the city. The Next upcoming tech parks will be world trade center.[28]

Employment generation[edit]

India's growing stature in the Information Age enabled it to form close ties with both the United States and the European Union. However, the recent global financial crises have deeply impacted Indian IT companies as well as global companies. As a result, hiring has dropped sharply, and employees are looking at different sectors like financial services, telecommunications, and manufacturing, which have been growing phenomenally over the last few years.[29]

With fundamental structural changes visible everywhere in the IT services due to Cloud computing, proliferation of Social media, Big data, Analytics all leading to digital services and digital economy, many of the leading companies in India's IT sector reported lower headcounts in their financial results.[30]

See also[edit]


  1. ^ Nirmal, Rajalakshmi. "IT's time for ctrl+alt+delete". The Hindu. Retrieved 26 February 2017.
  2. ^ a b "nformation technology/business process management (IT-BPM) sector in India as a share of India's gross domestic product (GDP) from 2009 to 2017". NASSCOM. Archived from the original on 20 December 2012. Retrieved 15 December 2012.
  3. ^ Singh, Shelley (14 September 2017). "How the Indian IT services sector is seeking to make its biggest transformation". Retrieved 3 November 2017 – via The Economic Times.
  4. ^ "Six major IT companies reduce employee strength by over 4,000 - Times of India". Retrieved 3 November 2017.
  5. ^ "Amid IT layoffs, this could be a reason to cheer".
  6. ^ "Special Economic Zones: Profits At Any Cost". Archived from the original on 7 September 2010. Retrieved 22 July 2010.
  7. ^ "Top 50 Emerging Global Outsourcing Cities" (PDF). Retrieved 22 July 2010.
  8. ^ "Online Journal of Space Communication". Retrieved 28 September 2013.
  9. ^ Inc, lbp (2013). India Telecom Laws and Regulations Handbook. Int'l Business Publication. p. 300. ISBN 1433081903.
  10. ^ "Gartner Says Top six Indian IT Services Providers Grew 23.8 Percent In 2011". 7 May 2012. Retrieved 28 September 2013.
  11. ^ "Google for Mobile 2015 Event Summary – DigiFutura Technologies". 22 September 2015. Retrieved 3 November 2017.
  12. ^ Canton, Naomi. "How the 'Silicon' is bridging the digital divide". CNN. Retrieved 6 December 2012.
  13. ^ RAI, SARITHA. "Is the Next Silicon Valley Taking Root in Bangalore?". New York Times. Retrieved 20 March 2006.
  14. ^ Bari, Prachi (7 December 2007). "Hinjawadi, the land of opportunity". The Economic times. India. Archived from the original on 9 May 2009. Retrieved 13 November 2009.
  15. ^ "Hinjawadi IT park". The MegaPolis. Archived from the original on 18 March 2009. Retrieved 13 November 2009.
  16. ^ a b Banerjee, Shoumojit (27 May 2017). "Pune, where panic reigns an IT campus". The Hindu. ISSN 0971-751X. Archived from the original on 27 May 2017. Retrieved 13 June 2018.
  17. ^ a b Cite error: The named reference industry was invoked but never defined (see the help page).
  18. ^ "Chennai activities". NASSCOM. Archived from the original on 16 November 2012. Retrieved 28 December 2012.
  19. ^ a b Chandramouli, Rajesh (1 May 2008). "Chennai emerging as India's Silicon Valley?". The Economic Times. Retrieved 28 December 2012.
  20. ^ "Ford's Rs. 200-cr. IT hub in Chennai". The Hindu. Chennai. 2 November 2000. Retrieved 28 December 2012.
  21. ^ "Work ethics: How Indian cities fare". Rediff. Retrieved 28 December 2012.
  22. ^ Udgirkar, Trushna. "New innovation support centre to open in Hyderabad this month".
  23. ^ "Hyderabad to emerge as new biotechnology capital of India: Experts". Retrieved 3 November 2017.
  24. ^ "Hyderabad Pips Chennai, Pune in Software Exports". The New Indian Express.
  25. ^ "CDFD to be Sun's first CoE in medical informatics". timesofindia-economictimes.
  26. ^ "Hyderabad Pips Chennai, Pune in Software Exports". Retrieved 1 April 2018.
  27. ^ "World Trade Center launched in Chandigarh". The Economic Times. 7 December 2015. Retrieved 28 February 2019.
  28. ^ "World Trade Center launched in Chandigarh". The Economic Times. 7 December 2015. Retrieved 28 February 2019.
  29. ^ "Economic Times (2010), Are IT jobs losing sparkle?". 27 August 2010. Retrieved 30 August 2010.
  30. ^ Goswami, Ranjit. "Is India's IT sector malfunctioning?". East Asia Forum. Retrieved 2 January 2018.


  • Sharma, Dinesh C. (2015). The Outsourcer: The Story of India's IT Revolution. MIT Press. p. 274. ISBN 9780262028752.
  • Parayil, G. (2016). Political Economy and Information Capitalism in India: Digital Divide, Development Divide and Equity Technology, Globalization and Development. Springer. p. 242. ISBN 9780230595613.
  • Vittal, N.; Mahalingam, S. (2001). Information Technology: India's Tomorrow. Manas Publications. p. 416. ISBN 9788170491194.
  • Franda, Marcus F. (2002). China and India Online: Information Technology Politics and Diplomacy in the World's Two Largest Nations. Rowman & Littlefield. p. 251. ISBN 9780742519466.
  • Ezer, Jonathan (2010). Perceptions of Information Technology in India: A study of the institutional forces that impact how technology is taught, and learned, at Indian Universities. LAP Lambert Academic Publishing. p. 268. ISBN 9783838372792.