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Information technology Industry a Future Outlook

Undisputedly, IT industry is one of the fastest growing industries among whole world. Indian IT industry has placed itself in the third position due to domestic as well as international market demand. Though IT, a small word but it converts the entire world into a global village. IT and ITES has recorded $ 39.6 billion revenue in the year of 2008-09 that register a growth of 30.7% beating the projected growth of 27% as per NASSCOM estimation. Over times, India has become IT hub.The strategic review by NASSCOM also pointed out as the proportion of national GDP Indian IT sector revenue has grown from 1.2% in FY 1998 to a predictable 5.5% in 2009. According to NASSCOM, about 3 million people can be employed in indirect and induced employment like telecom, power, facility management, IT transportation, catering and other services. To facilitate the penetration of IT and ITES in rural areas, the Indian Government has formulated a proposal to establish 100000 Common Service Center (CSC) in rural areas. Indian Government takes the initiative to execute the scheme through PPP (Private Public Partnership) to connect rural people to World Wide Web. Indian Companies are enhancing the global services delivery capabilities through a, cross border mergers and acquisitions, partnership and alliances with local players. The reasons behind the super normal growth of IT industry in India attributed to abundant youth talent ages less than 25 years, skilled English speaking man pool, comparative cost advantages, emphasis on quality and information security, flexible govt. policies, regularity environment etc. Right now India possesses a chunk of youth talent who want to become tech people. This demographic profile is unique and inherent. Above all comparative cost advantage has placed India in a very good position. Previously 69.4% outsourcing job was coming from U.S.A and 22.6% from U.K. Now at present this proportion has changed outsourced job from U.S.A and U.K are respectively 61.4% and 30.1%. Technology diffusion helps to pull down the telecom cost. Most of the Indian tech companies have obtained ISO, Six-Sigma certificates to provide the service at international standard and it is expected that in near future India will have the status of having highest number of ISO 9000 companies in the world.Indian Govt. has played a very crucial role in IT sector.Government of India has placed IT sector in SEZ (Special Economic Zone) hence it enjoyed 10 years tax holiday.

To boost the overall growth of IT sector Indian Govt has withdrawn, complicated license policy etc. SEZ become huge success in attracting Foreign Direct Investment. Apart from these initiatives proper infrastructure development is also very crucial for IT growth. Proper infrastructure development in all over country may place India at a prime position in global IT map. Indian IT industry is purely export oriented. Most of its revenue comes from IT-BPO services known as Business Process Outsourcing,. Indian IT sector largely depend on outsourcing job. NASSCOM has estimated shortage of five lakhs manpower in this sector by 2010. As US, market response is not so good India is trying to explore new market in Australia, European Union, and Japan.India IT sector directly or indirectly hugely depends on U.S.A and U.K for outsourcing.The Indian IT remains a success story till now. However, Indian Government must also be very concerned about this industry. To overcome such critical situation Government should increase the time span of SEZ,decrease amount of MAT (Minimum Alternative Tax) chargeable to this sector. Indian IT industry is a flourishing industry and the liberalized policies of Government help this sector to grow gradually. IT services and information technology enabled services have shown unprecedented growth. The demand for such services has grown substantially. The growth of the Indian IT industry is likely to be very good in future. The future trend of Indian IT industry appears to be very bright, promising and prosperous.