IT industry is one the top industries in India today. Due to insufficiency of foreign exchange in India in the 1970s and 1980s, the IT firms were supposed to export softwares across the world. The IT industry is mainly divide into two parts, one being the IT services and the other being the BPO ( Business Process Outsourcing).
IT services are responsible to design, plan, deliver, operate and control information technology (IT) services offered to customers while BPO is called the subset of outsourcing.
In the 1980s, the government started promoting the growth of software industry in the Indian market. Numerous software productions started taking place in order to feed the internal domestic hardware industry. The tarrif on hardware sector was to high so to cope up with the same, certain softwares like operating systems and drivers were required. By mid 1980s though, the software industry started separating from the hardware sector.
In 2005, the industry surpassed the twenty seven billion dollar mark on its exports.In the year 2008, the software industry represented 7% of the country’s GDP. In the year 2009, it represented 5.8% of the GDP share, In 2010, it represented 6.1% of the GDP, In the year 2011, it accounted for 6.4% of the GDP share, In the year 2012, it accounted for 7.5% of the GDP share, In the year 2013, it accounted for 8% of the GDP share, In the year 2014, it accounted for 8.1% of the GDP share, In the year 2015, it accounted for 9.5% of the GDP share, In the year 2016, it accounted for 9.3% of the GDP share, In the year 2017, it accounted for 7.7% of the GDP share, In the year 2018, it accounted for 7.9% of the GDP share, In the year 2019, it accounted for 7.8% of the GDP share and In the year 2020, it accounted for 7.7% of the GDP share. It can be seen from the above data that the IT industry has grown so much in the past the ten years, from contributing 5.8% in the year 2009 to contributing 7.7% in the year 2010. The industry has introduced so much economic growth in the country with cross borders mergers and aquisition, large client wins and stable pricing model. The US holds almost 70 percent of India’s annual software exports revenue, making it india’s biggest market for revenue generation. India’s top three software export companies are TCS (Tata Consultancy Services), Infosys, Wipro Ltd. and they all together accpunt for billions for revenues anually. The 1990s saw the emergence of economic liberalisation, under the rule of prime minister Rajiv Gandhi, wherein the government ahd minimum control on economic activities and taxes were reduced. This saw huge foreign investments in the Indian markets and the economy was boosted. This also gave a major boost to the Indian IT industry. In the 1990s,its exports accounted for almost a hundred million dollars with only five thousand employees at that time. However now, the industry is responsible for almost 70 billion dollars exports with 2.8 million employees working in the particular sector.
What is NASSCOM and what does it do?
NASSCOM stands for National Association of Software and Service Companies and it is a non profit trade organisation funded by the industry. It has got 2800 companies as its member companies, both Indian and multinational organisations (MNCs) that are present in India. The company was established in 1988 and its main focus is on IT( Information Technology) and BPO (Business Process Outsourcing). The president of the company is Debjani Ghosh and the chairman is Mr. UB Pravin Rao.
According to the Nasscom CEO Survey 2021, it is said that the IT sector is expected grow by almost 2.3% in the Fiscal Year 2021, this would mean, to almost 194 billion dollars.As per the survey,97 per cent of CEOs guessed a significantly better global economic growth in 2021, however 95 per cent expect hiring to be more than last year. The IT industry is expected to add over 1.38 lakh net new hirings in the year 2020-21.
Due to the pandemic and everything that is going on, the industry is working on a work from a home basis. “Even today, everyone is working from home. But what we have managed to showcase to clients is that though our worforce are working from home, we have not compromised on security and rather maintained all the parameters. That has given them confidence that work from anywhere can be worked out,” said NASSCOM chairman U B Pravin Rao. Going digital is definitely a strategy for IT companies in the upcoming years. Thanks to faster and efficient cloud adoption strategy that most of the industry CEOs expect more digitization deals in the year 2021. Debjani Ghosh has been focussing on a hybrid model of working for human resource area which will involve working from home as well as going to office and working offline but she said it still needs to be seen how this model is going to work out,it will all depend on how people will react to it and how the rules set forth by the government are going to be.