India's IT market
reached a turn over of US$ 12 billion in 2003. The IT Sector employs 650,000 people
and this is likely to reach 2 million by 2014. IT Companies are expected to account
for 8-10% of GDP by 2008 from 1.4% in 2001
Turnover
of the top three companies namely Tata Consultancies, Infosys and WIPRO, are over
one billion dollars each.
India
has emerged as a global player in Information Technology with software exports
of 9.8 billion US Dollars in 2002-03 and $ 12 billion in 2003-2004. The revenue
from exports of IT and related services is expected to reach US$ 57 billion by
2008, according to a McKinsey report.
Of
the Fortune 500 companies 220 outsource their software from India.
80
out of world's 117 SEI CMM level-5 companies are from India.
Infosys
has a turnover of around US$ one billion with a market cap of $ 12 billion. Wipro
has sales of US$ 900 million with market cap of US $ 11 billion.
India's
IT and IT-enabled services exports go to 133 countries. Indian IT companies train
people in 55 countries. NIIT and APTECH have 200 training centers in China.
India's
IT workforce is 650,000. This is projected to reach 2 million in the next ten
years.
BPOs
The BPO sector has
been growing at 60-70% annually and its turnover in 2002-03 reached US$2.4 billion
from US$565 million in 1999-00. It is projected to increase to US$4billion in
2004 and US$ 12.3 billion by 2006 and provide employment to about a million people
from its current level of 200,000. The outsourcing includes a wide range of services
including design, architecture, management, legal services, accounting and drug
development and the Indian BPOs are moving up in the value chain. Indian companies
offer contract research in development of new molecules and clinical research
trials, medical image processing and diagnostics.
Business
Week of 8th December 2003 quotes Chris Disher of Booz Allen Hamilton Inc as saying
"There is just no place left to squeeze costs in the US and that is why every
CEO is looking at India and every Board is asking about it.
The
BPO operations of GE capital in India save the company US$340 million a year.
In
the context of the backlash against outsourcing, it should be pointed out that
according to a report of Mckinsey Global Institute for every dollar that is outsourced,
the company gains 58 cents in net cost reduction and creates net value for their
countries worth 1.45 dollars, while the gain for India is only 0.33 cents.
There
are about 200 call centers in India with a turnover of US$ 2 billion and a workforce
of 150,000. Two third of this are captive centers run by foreign firms, such as
GE Capital, and American Express.
Unisys
Corporation of USA announced in end April 2004 that they plan to invest US$180
million over five years to set up a software development center in Bangalore.
