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INFORMATION
TECHNOLOGY
• Limited Services: The range of services provided • Diversified Services: The scope of services expanded
by Indian IT companies was more limited. They significantly. Indian IT companies diversified into various
were primarily engaged in software development domains, including software development, business
and maintenance, with a focus on cost-effectiveness. process outsourcing (BPO), and more.
• Foreign Exchange Controls: Strict controls were • Foreign Direct Investment (FDI): FDI norms were
in place regarding foreign exchange transactions. relaxed, allowing foreign companies to invest more freely
Companies faced challenges in obtaining foreign in the Indian IT sector. This led to increased collaborations,
currency for imports and international transactions. joint ventures, and the establishment of foreign-owned IT
companies in India.
• For about 100-200 companies focusing on IT
services, government projects, and basic software • About 100,000 IT-BPM companies came in India after
development before 1991. 1991. This figure includes both large and small firms.
The rise of the Indian IT Industry:
India emerged as a global IT hub in
the late 20th century.
Factors contributing to this rise:
o Large pool of skilled and
educated workforce.
o Cost-effective labor
compared to Western
countries.
o Government support through
policies and
infrastructure
development.
Impact of IT on Business Operations:
Improved Efficiency and Productivity: IT tools and systems automate routine tasks,
Ethical Concerns: The IT industry may face ethical challenges, such as issues related
to data privacy, surveillance, and the use of technology for potentially harmful
purposes. Companies must navigate ethical considerations in their management
practices.