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CHAPTER-3
IT INDUSTRY
3.1 INTRODUCTION
India is the world's leading destination of sourcing for the Information technology
(IT) industry, estimating market for approximately 67% of the US$ 124-130 billion.
About 10 million employs are working in the industry. More prominently, the industry
has led the economic transformation of the country and altered the perception of India in
the global economy. India's cost competitiveness in providing IT services, which is
approximately 3-4 times cheaper than the US, continues to be the mainstay of its Unique
Selling Proposition (USP) in the global sourcing market. However, India is also gaining
eminence in terms of intellectual capital with several global IT firms setting up their
innovation centers in India.
The IT industry has also created significant demand in the Indian education
sector, especially for engineering and computer science. The Indian IT and ITES industry
is divided into four major segments – IT services, Business Process Management (BPM),
software products and engineering services, and hardware.
IT-BPM sector which is currently valued at US$ 143 billion is expected to grow
at a Compound Annual Growth Rate (CAGR) of 8.3 per cent year-on-year to US$ 143
billion for 2015-16. The sector is expected to contribute 9.5 per cent of India’s Gross
Domestic Product (GDP) and more than 45 per cent in total services export in 2015-16.
3.2 IT INDUSTRY EMPLOYMENT
Includes technical occupations, such as software developers, network engineers,
computer support specialists, etc. Includes non-technical professions, such as sales,
marketing, HR, finance, operations and general management that support and facilitate
the operation of IT companies.
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Information technology industry employed an estimated 5.04 million workers as of
yearend 2015. This translates to job growth of 3.1%, or nearly 152,000 additional IT jobs,
it will be the highest annual growth rate for IT jobs.
3.3 TOP IT GROWTH OCCUPATIONS IN 2015 (PERCENT CHANGE)
1. Cyber security Analysts
2. Web Developers
3. Software Developers, Applications
4. Systems Analysts
5. IT Support Specialists
6. IT Managers / Directors / CEOs
In addition to core IT positions, there are many technology-‐intense occupations on the
periphery. For example, occupations such as IT project management, information
technicians, audio/video technicians, technical sales, technical writers, automated
manufacturing computer operators and IT training positions, all require significant
expertise and experience with various aspects of technology. While these positions are
not typically found in an ‘IT Department’ they are an important component of the IT
workforce.
3.4 THE EVOLUTION OF THE IT SECTOR IN BANGALORE
People from various places can find in Bangalore a one-stop destination for a
huge number of IT jobs and career opportunities. It is well-renowned for its thriving IT
industry. This beautiful city has something for everyone. Over the years, this city has
managed to maintain its reputation of being a job hub for both the fresher’s as well as
experienced ones. According to a report of Industry Body Assoc ham, the IT sector has
generated the highest IT jobs in Bangalore in the year 2013. Bangalore accounts for the
biggest IT-related exports in India.
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Being a foremost hub for IT companies in India, Bangalore has been given the
name “Silicon Valley of India”. The perfect mix of talent and the entrepreneurial
environment encourages lots of companies to establish their offices in this city. Some of
the top most IT firms in Bangalore are: Infosys, Infotech, HCL Technologies, Hexaware,
Wipro, Microland, Accel Frontline, Exilant Technologies, Tech Mahindra, Larsen &
Toubro Infotech, Tally Solutions, ITC Infotech, Mphasis, Tata Consultancy Services,
Sasken, IGATE, Happiest Minds Technologies, etc.
3.5 IT PARKS IN BANGALORE
Bangalore is one of the fastest growing and developing cities in India in terms of
infrastructure, jobs as well as the standard of living. The IT sector is one of the major
contributors to boost the economy of India and when we talk about the IT sector, the first
name that comes into the mind is Bangalore. This IT industry in Bangalore contributes
around 55% of the state gross domestic product. This city has various IT parks with all
the amenities in the premises. Some of the major IT parks in Bangalore city are
Integrated Hitech Software Park, International Tech Park Ltd Cro, Prestige Tech Park,
Safina Software Technology Park, Salarpuria Infinity, Brigade Tech Park, Manyata Tech
Park and Bagmane Tech Park.
3.6 TOP 10 IT COMPANIES IN BANGALORE 2017
1. IBM INDIA PRIVATE LIMITED is the Indian subsidiary of IBM.[ It has
facilities in Bengaluru, Ahmedabad, Delhi, Kolkata, Mumbai, Chennai, Pune,
Gurgaon, Noida, Chandigarh, Bhubaneshwar, Coimbatore, Visakhapatnam and Hyderaba
d. Between 2003 and 2007, IBM's head count in India has grown by almost 800%, from
9,000 in 2003 to nearly 74,000 in 2007. Since 2006, IBM has been the multinational with
the largest number of employees in India. IBM is very secretive about the geographic
distribution of its employees. By most estimates, it has close to a third of its 430,000
employees (~ 150,000) in India, and it likely has more employees there than in the US. S
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2. INFOSYS LIMITED is India's second largest Information Technology
Company in India. This Company is among the first 10 Information Technology
companies in the country. It was established in the year 1981 by Narayana Murthy and
six engineers in Pune, with an initial capital of 250 US Dollars and started with their first
project with their first client -Data Basics Corporation, in New York. Today, they have
international presence with 63 offices and development centers. In the year 2016, Infosys
served 1054 clients in 50 countries in the world. Infosys main products are NIA - Next
Generation Integrated AI Platform (formerly known as Mana), Infosys Information
Platform (IIP)- Analytics platform, EdgeVerve Systems, Finacle- Global banking
platform by EdgeVerve Systems, Panaya Cloud Suite, and Skava. Their main services are
Business Consulting, Enterprise Services, Digital Transformation, Enterprise Application
Development, Enterprise Processes, Customized Software Applications, Business Process
Outsourcing, Application Outsourcing Services, Application Development and
Maintenance, Infosys Validation Solutions, Testing, Cloud, Infrastructure and Security
Solutions, Customer Service Outsourcing, Big Data, Artificial Intelligence, Engineering
Services, Automation, and many more. They serve industries such as Defense,
Aerospace, Agriculture, Airlines, Automotive, Banking, Insurance, and Customer
Packaged Services, Education, Finical Services, Healthcare, Hospitality, Industrial
Manufacturing, Life Sciences, Logistics & Distribution, Media & Entertainment, Oil &
Gas, Retail, and Public Sector.
3. TECH MAHINDRA LIMITED is an Indian multinational provider
of information technology (IT), networking technology solutions and Business Process
Outsourcing (BPO) to the telecommunications industry. Anand Mahindra is the
Chairman of Tech Mahindra, which is headquartered at Pune, India. Part of the Mahindra
Group, Tech Mahindra is a US$4.3 billion company with over 117,000 employees across
90 countries. It provides services to customers which include Fortune 500 companies. It
is also one of the Fab 50 companies in Asia, a list compiled by Forbes. Tech Mahindra
was ranked #5 in India's software services (IT) firms and overall #111 in Fortune India
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500 list for 2012. Tech Mahindra, on 25 June 2016, announced the completion of a
merger with Mahindra Satyam.[5]
4. HCL TECHNOLOGIES LTD India’s role in the explosive growth of the IT
industry is well known and today, IT outsourcing to India is a trend that is here to stay.
The Indian IT industry contributed to almost every sphere of America’s scientific and
technological achievements in California’s Silicon Valley in the 1980s and 1990s,
introducing shared services and outsourcing concepts. India has always maintained its
competitive edge as the destination of choice for nearly 80 percent of European and U.S.
outsourcing firms, with HCL as a leading IT outsourcing company
5. TCS Tata Consultancy Services (TCS) is a global leader in IT services,
digital and business solutions that partners with its clients to simplify, strengthen and
transform their businesses. We ensure the highest levels of certainty and satisfaction
through a deep-set commitment to our clients, comprehensive industry expertise and a
global network of innovation and delivery centers.
TCS has been recognized by Brand Finance as one of the Big 4 Global IT Services
Brands. Our continued industry-leading growth is a testament to the certainty our clients
experience every day.
Established in 1968, Tata Consultancy Services a member of the Tata Group has grown
to its current position as the largest IT services firm in Asia based on its record of
outstanding service, collaborative partnerships, innovation, and corporate responsibility.
6. CTS INDIA is one of the world's leading professional services companies,
transforming clients' business, operating and technology models for the digital era. Our
unique industry-based, consultative approach helps clients envision, build and run more
innovative and efficient businesses. Headquartered in the U.S., Cognizant, a member of
the NASDAQ-100, is ranked 205 on the Fortune 500 and is consistently listed among the
most admired companies in the world.
Cognizant houses around 150,000 employees and has spanned all over the world.
There are many development centers of the company as well. There are many units which
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are divided into vertical and horizontal sections. The vertical unit is for Healthcare,
Retail, Banking Services, whereas the horizontal unit focuses on mobile computing,
testing, and BPO. More than 100,000 employees work in India. The major revenue of the
company is from financial companies and then from healthcare industries.
7. WIPRO Today Wipro Ltd. is one of the most successful Technological
Companies in India and around the world. Wipro an Indian based company was founded
as a peanut oil company with name of Western Indian Vegetable Products in 1945 by
M.H. Premji and later was renamed "Wipro Ltd." by his son Azim H. Premji.When
Wipro Ltd was first created by M.H. Premji; no one ever thought it would become one of
the leaders in Information Technology. While M. H. Premji lived, the company was
global, with about 350 employees, in and around Bombay, with $3 million in revenues.
The company was already traded when M.H. Premji its founder had passed the way.
Many shareholders did not believe on the new leader of the company, Azim Premji
because of his age. Stockholders demanded to sell the company because of the stock's
lousy performance.
8. HP INDIA Hewlett Packard Company (HP) is an American multinational
Information Technology organization that provides hardware and software services to
small, medium and large sized businesses across industries. It also has an extensive range
of IT products to offer.
The organization was founded by William “Bill” Redington Hewlett and Dave
Packard in 1939. It was started in a car garage in Palo Alto, California, where today it is
headquartered. The first product of HP was an audio oscillator. Today, HP specializes in
developing and manufacturing PCs, networking hardware, computer storage and
delivering services. HP’s product line includes PCs, servers, networking products, storage
devices, software, and printers and imaging products. There are more than 3,17,500
employees in the organization globally. It’s noteworthy to mention some of the key
milestones of HP since 1939. HP became a public organization in 1957. In 1961 HP was
listed on the New York Stock Exchange. In 1962 HP entered the Fortune 500 list at
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position 460. HP entered the Asian market in 1963. In 1964, Dave Packard was elected as
the CEO and Chairman of the Board and Bill Hewlett was elected as the President.
9. DELL INDIA Dell Inc. was started by University of Texas freshman Michael
Dell in the year 1984. Michael wanted to sell computers at affordable rates and break the
monopoly that IBM was exercising over the market. So he started off by buying
computer parts in wholesale, assembling them and selling them via mail order.
The principle of the company was to provide computers at the lowest price
possible. This was achieved by removing the retailer in between and using the low-cost
direct marketing method. In the first full year of business Dell was able to achieve sales
of $6 million which jumped to $40 million in the very next year.
10. ACCENTURE is a global professional services company and provides
consulting services in digital, technology and operations. One of the leading
multinational companies in the field of management consulting and
outsourcing, Accenture Incorporated has now become the global leader in consulting
services and is also a Fortune 500 Company. Not only is the brand now on Fortune’s list,
but also offers efficient services and solutions to multiple companies who are on the
Fortune Global 100 and Global 500 lists.
Accenture was previously a business and technology consulting division of an
accounting organization called Arthur Andersen. The first undertaking was automating
payroll processing and manufacturing for a client in Kentucky. In 1989, Arthur
Andersen and Andersen Consulting became separate units of Andersen Worldwide
Société Coopérative (AWSC). On 1 January 2001, Andersen Consulting adopted its
current name, "Accenture".
