India's Future in IT Industry

Nipun Jain
Atmanand Jain Institute of Management & Technology
Ambala City

As far as India is concerned we are best in service sector because of cheap and skilled labour. The India's share in overall world trade is .5%, but in service sector our share is 1.5%. Though it is less but India is having a bright Chance of increment. The major export of service by India is in IT (Information Technology) Sector. Last year IT exports give us $2.5 billion, this is not a small amount. The major players of IT Sector are Wipro, Infosys etc. Last quarter profit of Infosys is increased by more than 50% and of Wipro it is increased by more than 40%. This it self shows the growth of IT sector in India.
Now future of IT sector in India.  It is two fold.

On one hand we are having benefit of   =>
* Low labour cost
* English speaking people
* Good Companies like Wipro, Infosys etc.
* More than 85% consumer of Software Industry Prefer Indian Software.
But on the other hand
* Our government policy, strict rules, Foreign Direct Investment restriction in IT sector etc. are hurdles in the growth of IT Industry.
* Next is the competition by Other Low Cost Countries like China. Although at present we are having good number of English speaking people than China but China has also started teaching English language to it people and day is not far when China is our major Competitor in IT Sector also.

Bur apart from all we are having advantage of being the first love of the IT Sector majors in the World like MICROSOFT, CISCO etc. Last year Software Company MICROSOFT'S CEO visited India and inaugurates their office in Hyderabad, while at the same time they are selling their business in other parts of the World. This it self sows the trust of Foreigner in Shining IT Sector/market in India.     
Another good indicator for IT sector is Foreign Institutional Investment Inflow. In December our Sensex rises to historic height of above 6600 and now on  2nd Feb 2005 it is around about 6555 and major sector in this growth is IT apart of other like Automobile, Banking, Pubic sector Units etc. This means foreign investment is coming to India for the growth and expansion in these sectors.

So, in conclusion we can say that India is having a bright future. This is understood by our company that's why they are now engaged in producing their own software apart from doing clerical work for foreign companies. Joint Venture's are also increasing and Government is also thinking to give more freedom and benefit to the players in Information Technology.


1) Bombay Stock Exchange Report (from net).
2) Export-Import bank report (from net).
3) Economic Times (15.01.05).
4) Economic Times (December).
5) Interview of Dr. Prem Jain Vice-President CISCO.
6) Infosys Website.
7) Wipro Website.

Nipun Jain
Atmanand Jain Institute of Management & Technology
Ambala City

Source : E-mail February 3, 2005

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