The Indian IT industry today, is a major component of the services industry of India. Over
the years, it has become a major growth driver for the economy, contributing significantly
to the GDP of India. The origins of the Indian IT industry date back to the year 1968, when
the Tata Group in collaboration with Burroughs (A major American manufacturer of
business equipment) set up the first software zone, SEEPZ in Mumbai. By 1973, SEEPZ
became the first software export zone contributing almost 80% of the software export in
the 1980s.
Indian firms, across all other sectors, largely depend on the IT & ITeS (IT enabled
services) service providers to ensure their business processes are efficient and efficient. In
terms of IT spending, the Indian manufacturing sector rules the roost followed by the
automobile, chemicals and consumer products industries.
NASSCOM (The National Association of Software and Services Companies) predicts that
the IT sector of India will grow by 13-14 per cent in 2013-14 and continue its robust
growth in the years to come. The revenues of the sector are expected to touch US$ 225
billion by the year 2020.
The IT- ITES sector can be broadly classified into two categories (a) Business Process
Outsourcing (BPO) and (b) Domestic and IT exports. The growth witnessed by the BPO
sector under the aegis of the IT-ITES sector has been quite exceptional. According to
NASSCOM, “The IT-BPO sector in India had an aggregated revenue of US$ 100 billion in
FY 2012, where export and domestic revenues stood at US$ 69.1 billion and US $31.7
