Submitted By: Rubeena Beegum.

A S2 MBA Roll No: 35

In India, the software boom started somewhere in the late 1990s.

Bengaluru city is the silicon valley of India.

India has been in the throes of an IT revolution for a very long time now and the bubble has not yet burst. It keeps changing the face of India, and keeps affecting the world of business through it new

technological advancements.

India's IT industry (USD bn)[15]

Particulars
IT Services

FY 2004
10.4

FY 2005
13.5

FY 2006
17.8

FY 2007
23.5

FY 2008
31.0

- Exports
- Domestic

7.3
3.1

10.0
3.5

13.13
4.5

18.0
5.5

23.1
7.9

ITES-BPO
- Exports - Domestic

3.4
3.1 0.3

5.2
4.6 0.6

7.2
6.3 0.9

9.5
8.4 1.1

12.5
10.9 1.6

Engineering services, R&D and Software products

2.9

3.9

5.3

6.5

8.6

- Exports - Domestic Hardware - Exports - Domestic Total IT industry (including hardware)

2.5 0.4 5.0 0.5 4.4

3.1 0.7 5.9 0.5 5.1

4.0 1.3 7.0 0.6 6.5

4.9 1.6 8.5 0.5 8.0

6.4 2.4 12.0 0.5 11.5

21.6

28.4

37.4

48.0

64.

With the arrival of the internet, every aspect of business was affected and very quickly services emerged as one of the fastestgrowing sectors. Countries like India began offering low-cost services. Foreign companies realized that it was infinitely cheaper to outsource IT jobs like support, accounts, and payroll management etc to India. Even in today's recession time, people are moving to Bengaluru to explore the various opportunities available there.

Business Process Outsourcing and Knowledge Process

Outsourcing companies have become the key drivers of the IT boom in India.

Despite the global economic slowdown, the Indian IT software and services industry is maintaining a steady pace of growth.

IT centers, such as Bangalore, Hyderabad, Mumbai, Pune,

Chennai, Calcutta, Delhi-Noida-Gurgaon, Vadodara, Bhubaneswar, Ahmedabad, Goa, Chandigarh, Trivandrum, Cochin are all

developing quickly.
Indias most prized resource is its readily available technical work force.

India has the second largest English-speaking scientific

professionals in the world.

Another big reason for the boom in IT sector in India is

that the wages of IT professionals are far lower than those of their counterparts in Europe or the United States of America. The industry is in an expansion mode right now, with dozens of new offshore IT services vendors emerging

everyday.
India will definitely be the country of choice for offshore software development. India have the potential to become and remain the country of choice for all software developments and IT enabled services, second only to the USA.

REASONS FOR THE BOOM IN INDIA

India is among the three countries that have built supercomputers on their own. The other two are USA and Japan.

India is among six countries that launch satellites and

do so even for Germany and Belgium. India's INSAT is among the world's largest domestic

satellite communication systems.

India has the third largest telecommunications network among the emerging economies, and it is among the top ten networks of the world.

CONCLUSION
To become a global leader in the IT industry and retain that position, India need to constantly keep moving up

the value chain, focusing on finished products and

solutions, rather than purely on skill sets and resumes. We need to be able to package the services as products, rather than offering them as raw material. We need to be able to recognize and build up on our strengths and work on our weaknesses. Every year, the number of companies who want to use India as an IT hub is increasing and it is estimated that

this trend will continue for very many years to come.