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Information Technology, in recent years has come to the world as a backbone of the economy of
the countries. In the marathon of IT various countries jumped into the competition in the mid
nineties; however, India entered the game much earlier, in the mid eighties. Their contribution at
the national and International level was tremendous.
The acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical
information by a microelectronics based combination of computing and telecommunication is
equal to IT. Information Technology (IT) has made possible information access at gigabit speeds.
It has created a level playing field among nations and created has a positive impact on the lives
of millions.
Today, a countrys IT potential is paramount for its march towards global competitiveness,
healthy Gross Domestic Product (GDP) and meeting up the energy and environmental
The Indian IT and Information Technology enabled Services (ITeS) sectors go hand-in-hand in
every aspect. The industry has not only transformed Indias image on the global platform, but
also fuelled economic growth by energizing the higher education sector (especially in
engineering and computer science). The industry has employed almost 10 million Indians and,
hence, has contributed significantly to social transformation in the country.
India is one of the fastest-growing IT services markets in the world. It is also the worlds largest
sourcing destination, accounting for approximately 52 per cent of the US$ 124130 billion
market. The countrys cost competitiveness in providing IT services continues to be its USP in
the global sourcing market.
India has the potential to build a US$ 100 billion software product industry by 2025, according
to Indian Software Product Industry Roundtable (iSPIRT). The software products market in
India, which includes accounting software and cloud computing-based telephony services, is
expected to grow at 14 per cent in 2014.
The Department of Electronics and Information Technology is coordinating strategic activities,
promoting skill development programmes, enhancing infrastructure capabilities and supporting
research and development (R&D) for Indias leadership position in IT and ITeS.

Market Size
Indian IT and ITeS industry is divided into four major segments IT services, business process
management (BPM), software products and engineering services, and hardware. The IT services
sector accounted for the largest share of the IT and ITeS industry, with a total market size of US$
56.3 billion during FY13, followed by BPM sector (US$ 20.9 billion), and software products and
engineering services (US$ 17.9 billion); the market size for hardware was US$ 13.3 billion
during FY12.

The Indian IT-BPM industry is expected to add revenues of US$ 1314 billion to the existing
revenues by FY15, according to National Association of Software and Services Companies
The industry grew at a compound annual growth rate (CAGR) of 13.1 per cent during FY08
13.Total exports from the IT-BPM sector (excluding hardware) were estimated at US$ 76 billion
during FY13, Export of IT services has been the major contributor, accounting for
57.9 per cent of total IT exports (excluding hardware) in FY13. BPM accounted for 23.5 per cent
of total IT exports during the same fiscal. The IT outsourcing sector is expected to see exports
growing by 1315 per cent during FY15.
The technology industry of India will have a US$ 37 billion of CMO opportunity by 2020,
according to a report titled marketing, Disrupted: Opportunities for the Indian technology
industry' by NASSCOM and Sapient Nitro.

History of IT Industry in India

The internet first came to India in 1986 through Education and Research Network (ERNET), a
government funded network linking the countries academic institutions. However, commercial
net access became available in August 1995 through the Gateway Internet Access Service
(GIAS) of VSNL. Within two years, the government announced the Internet Service Provider
policy. The policy suggested no license fee for the first five years and Re.1 after every year,
license term of 15 years extendible to twenty years, freedom to setup own international
gateways, and cable TV providers were allowed to offer net access. India has setup a silicon
valley in Bangalore with respect to boost the IT sector and enhances its role in the economy of
the country. The visit of former US president, Bill Clinton and the owner of Microsoft Company,
Bill Gates in the same year 2000, were aimed at to play a joint role with India in the IT sector.
India has emerged as the fastest growing and the fourth largest IT market in Asia Pacific,
according to an IDC (International Data Corporation) study. The result has been that for many
years - India has been the developing worlds software leader. There are few large firms that
control much of the exports of the Indian Software industry. The top five firms account for 32%
of total software exports. The IT industry is concentrated in TN, Karnataka and AP. Almost 90%
of the software development and export activity are confined to four metropolitan areas in India
namely Mumbai, Bangalore, Chennai and Delhi but slowly and steadily increasing in other cities
as well.
The Indian software industry has grown at a compound annual rate of over 50% in the 1990s, the
highest for any country during this period. The revenues have risen from $ 175 billion to $ 8.7
billion during the decade. Indian national account for 45% of HI visas issued by the USA every
year and a large proportion of them go as software engineers. India is home to some 650000
software developers or about 10% of the worlds developers population. The Indian software
developer population is growing at an annual compound growth rate of 32% which means that in

next three years the Indian developers will be the highest in the world. Among the Fortune 500
companies over 250 outsource their softwares related work to India.
The industry has grown in depth and scope. It is no longer confined to producing and exporting
low-end software products and services. Several multinationals including many leading ones
have established software development centers in India. DataQuest (2004) reports that such
MNC centers are filing for patents in large numbers. It suggests that intellectual property
revenues would constitute a major chuck of a software companys revenue in the future and
Indian companies (other than MNCs), including some of the large ones, have not yet started
preparing for it.
Leading Indian IT firms, such as Infosys and Wipro, are multinational and have offices around
the world and employ nationals in these countries. Infosys has alliances with the worlds leading
firms, including IBM, Intel, Microsoft and Oracle, and also has made strategic acquisitions of
foreign firms.
10 Technologies to shape the IT Industry for the future
It's hard to believe that many of the year's big events have come and gone. The Consumer
Electronics Show in January played host to some of the biggest technology announcements of
the year, while Mobile World Congress in February proved that the mobile device market is as
vibrant as ever. So far, those events have helped shape the kind of product launches customers
can expect in the future. The shows, coupled with recent trends in the industry, are even more
significant because they provide insight as to how the mobile market will evolve through the rest
of the years. But it's not just about mobile technology. Cloud computing, robotics, 3D printing,
and even video games and entertainment technology are driving the evolution of the IT industry
these days. One of the exciting aspects of the technology industry is that it's always changing.
Smart phones
Judging by every analyst's report over the last couple of years, smart phones are going to be
extremely important in the years to come. Smartphone shipments worldwide are expected to
jump, feature phone handsets will further drop in market share, and people will, in some cases,
choose their iPhones or Android devices over every other product category, including PCs.
Tablets Will Be Huge
In addition to smart phones, tablets are expected to be big winners in the following years. Like
smart phones, tablet shipments will be up in 2014, further hurting PC sales. Amazon, Apple and
Google, among other tablet makers, are expected to announce new devices in 2014 that will
surely help improve sales.
Wearable Computers
If Mobile World Congress proved anything, it's that wearable technology is here to stay.
Samsung showed off a new Galaxy Gear device, along with a wearable fitness tracker. Pebble
Smartwatch continues to be a worthwhile choice for consumers. Even Apple is expected to get

into the swing of things this year with its iWatch. And all of that fails to mention that Google
Glass is slowly but surely inching its way toward store shelves.
In a recent comment at a technology summit, Google Executive Chairman Eric Schmidt said that
he expects robotics to be "omnipresent in a good way" in our lives. That came after Amazon
announced a drone program to deliver goods and Google said that Andy Rubin had been heading
up an entirely new robotics division. Robotics is a huge growth area, and several major
companies seem to be ready to capitalize on it.
LTE Services
The Galaxy S5 brought to light advancements in Long Term Evolution with its support for LTE
4, a technology that will essentially provide faster and more reliable LTE service to smartphones.
But advancements in LTE are just one small piece of the puzzle for the technology. With better
LTE comes more video-streaming opportunities on mobile, enhanced data-handling in apps, and
new opportunities for carriers to deliver add-on services. LTE is extremely important in today's
technology industry.
Cloud Computing
For the last few years, cloud computing has been an important component in the industry's
growth, and that is to be expected again this year. In fact, Gartner reported late last year that the
personal cloud and cloud integration in the enterprise will be among the fastest-growing sectors
in the industry in 2014. That's good news for companies like Dropbox and others that are trying
to attract both consumers and enterprise customers.
3D Printing
At the Consumer Electronics Show in January, 3D printing was one of the hot topics. In fact, the
show played host to a new range of 3D printers that offer affordable prices for in-home use.
Already, we've heard stories of consumers building usable equipment to better their lives with
3D printers, and it appears right now that those efforts will only be magnified in the coming
Mobile Apps
Mobile apps continue to be an extremely important aspect of the technology industry. Developers
around the globe are pumping out new apps hoping they catch on, all the while adding more
functionality to devices that desperately need it. From games to utilities, mobile apps have
become big business and will only become bigger in the next several years.
Living Room Entertainment Devices
When Google announced Chromecast, the in-home entertainment industry changed. The $35
dongle is more affordable than Roku or Apple TV, and like those other products, is designed to
deliver all sorts of content to the consumer's television. Content developers, meanwhile, are
building out platforms to deliver their programming, and Apple CEO Tim Cook recently made
clear that his company doesn't believe the Apple TV is a hobby. Look for the living room to be a
major battleground for companies in 2014.

Video Games
Gaming is expected to be a major driving force in the technology industry in the coming years.
Both Sony and Microsoft launched new consoles in 2013, leaving developers with new platforms
on which to build games. In addition, gamers seem to be moving away from the traditional
market and toward mobile games, prompting more developers to invest in game development
than anything else.
Trends Driving the Future of Information Technology
The Accenture Technology Vision 2011 identifies eight emerging trends that challenge long-held
assumptions about IT and are poised to reshape the business landscape. The report also offers
action steps that high performing businesses and governments can take to prepare for the new
world of computing.
Platform architectures - One of the most significant trends identified is the age of viewing
everything through an application lens is coming to an end. Instead, platform architectures will
be selected primarily to cope with soaring volumes of data and the complexity of data
management, not for their ability to support applications.The tried and true relational database
will not go away, but it will soon start to make way for other types of databases streaming
databases, for instance that mark a significant departure from what IT departments and
business users have relied on for decades
Social platforms - The report also predicts the evolution of social media into social platforms.
This means company websites may no longer be the first port of call for customers. This has the
potential to disrupt the way companies conduct business, posing new challenges and
opportunities for IT.For example, social identities based on the rich history of information
that individuals leave in social networks will become much more valuable to businesses than
the traditional and isolated information they get when an individual registers on their corporate
Cloud computing- According to the report, hybrid clouds software-as-a-service (SaaS) and
platform-as-a-service (PaaS) in combination with internal applications will cement ITs role as a
driver of business growth.The focus will shift from simple infrastructure solutions to developing
cloud strategies that deliver increased functionality and flexibility using a mix of public and
private cloud-based application and platform services. While many challenges remain, cloud is
nonetheless poised to change the face of enterprise computing.
Data security - The fortress mentality, in which all IT has to be architected to be foolproof, is
giving way to security architecture that responds proportionately to threats when and where they
happen.As a result, the role of people in data security will decline, replaced by automated
capabilities that detect, assess, and respond immediately.
Data privacy - Individual privacy will take center stage as a result of increased government
regulation and policy enforcement. The report concludes: We expect that leading players will

develop superior levels of understanding, enterprise-wide, about the distinctions between being a
data processor broadly handling the personal data of others versus being a data controller,
thus lowering the risks of unwitting breaches or privacy regulations and perceptions of privacy
Analytics - Companies that continue to view analytics as a simple extension of business
intelligence will be severely underestimating analytics potential to move the needles on the
business. Among other failings, traditional BI does not take advantage of the wealth of
unstructured data that is now available. IT leaders will need to work closely with business
leaders to identify where analytics can be leveraged effectively, as well as the proper mix of
services required to optimize analytics capabilities across the enterprise.
Architecture - Information technology is evolving from a world that is server-centric to one that
is service-centric. Companies are quickly moving away from monolithic systems that were
wedded to one or more servers toward finer-grained, reusable services distributed inside and
outside the enterprise. The goal: to decouple infrastructure, systems, applications, and business
processes from one another.
User experience - Today, business process design is driven by the need for optimization and cost
reduction. Tomorrow it will be driven by the need to create superior user experiences that help to
boost customer satisfaction. Great user experiences will require more layered approaches than
what is typical today. As such, application design will be a multidisciplinary exercise: Typically
handled today by IT architects and business owners, tomorrow it will involve optimization from
the perspective of the process actor, with the emphasis on simplicity and on removing
Future trends for the Indian software industry
Move towards quality. Low cost will not be enough to win clients and for BPOs to gain
market share. They will need to compete on quality and price.
Fragmentation into specialist organizations. Rather than large generalized BPOs you will
see specialized companies that have a depth of talent with one particular type of work.
An increase in staff working from home. The difficulties with traffic and infrastructure
mean that there are significant advantages for organizations that allow employees to work
from home. However staff will be required to use software to track their time and productivity.
An increase in start-up activity. Top level developers will consider the option of creating
their own start-up, and the start-up community will flourish.
Indian developers accessing online degrees and free courses online from US universities.
It is possible to study online from MIT for free. The future will be full of self-taught individuals
who availed of all of the freely available course materials to educate themselves.

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