A Success Story: The Rise of Information Technology And Outsourcing in India
A Success Story: The Rise of Information Technology And Outsourcing in India
The rise of information technology has changed the way the world looks at India. Our country is one of the best destinations for IT businesses and companies worldwide. Apart from investment friendly government policies, another huge impetus for the growth of information technology in India has been a techno savvy work force. It is also through the development of stable infrastructure that information technology has experienced a massive rise in India. Outsourcing is still going strong in our nation. As per NASSCOM’s estimate, annual revenue generated from the IT and BPO sectors have surpassed billions of dollars as compared to closest rivals such as China and Philippines. The Indian outsourcing industry is estimated to cross over $220 billion by the year 2020. This sustains the growth of the IT industry in India. The Indian information technology industry has made massive contributions to the economy of the country. Job creation has been one of the most important benefits of the growth of IT and outsourcing in India. In fact, the Indian IT industry is firmly entrenched in the global market.
The foundation of the IT industry in India was laid by the TATA group. In the year 1970, this corporate group joined Burroughs Corporation to provide outsourced application services. This heralded the birth of the software revolution in India. The Indian educational system has also spurred the growth of IT in India. A huge number of world class engineering institutions are equipping students to become experts in the field of software and information technology. Policy wise, information technology initiatives were promoted by the 1984 government policy. It was during this era that several important policy initiatives were taken for spurring the growth of the information technology industry in India.
Liberalisation of policies for computer and electronics and the computerisation of the railways during this era also boosted the growth of information technology in India. Apart from this, rural digital telephone exchanges were also established. IT gradually became the buzzword for growth and development. In the year 1988, NASSCOM was set up in the financial capital of Mumbai to encourage the growth of IT and ITES in India. IT enabled services gained momentum during this period. ITES such as hardware, networking, training, peripherals, domestic and export markets for IT services and software companies started flourishing in India during this point in time. IT outsourcing and offshore enterprises also began to develop during this period. US and UK information technology businesses also started collaborating with Indian companies for promoting software technology.
Apart from this, comprehensive software development has also become a key priority for overseas customers. Indian companies offer advantages such as English speaking employees, low cost personnel and extremely cheap real estate costs. This has been seen as a major advantage from the viewpoint of global companies. IT hubs have developed in cities of India such as Hyderabad, Secundarabad, Pune, Bangalore and Mumbai. The BPO (business process outsourcing) industry has also expanded. Now, outsourcing has also developed to incorporate new avatars such as legal process outsourcing (LPO) and knowledge process outsourcing (KPO). It was during the 1990s that the Indian government introduced a telecommunication policy as well as other innovative initiatives for offshore outsourcing.
The Y2K boom also created IT professionals for the industry and contributed towards more job opportunities. Government policy reforms as well as a good base in technical education and market requirements have made information technology expand further during this time period. Chennai also developed as an IT hub during this period. Client confidence received a massive boost during this period and entrepreneurs recognized that this industry had the potential to expand further as well. Apart from this, the perception of India in the world community also changed. In the 21st century, India has emerged as a leader in the field of outsourcing and information technology. Currently, as the outsourcing industry expands further and the information technology sector undergoes new innovations, India is poised to enter a new phase of growth. The success of India’s IT and outsourcing industry is a possible tool for attracting more investments in this field. It is also ideal for creating jobs for a growing population.
