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IT and ITeS rule Indian market

India is the world’s largest sourcing destination for the IT industry, accounting for approximately 67 per cent of the US $ 124-130 Billion market. The industry employs about 10 million workforce. The largest number of people (78 per cent or 2.3 million out of 3 million) is employed in providing IT and ITeS services for the export market


IT and ITeS has four sub-sectors they are IT Services, ITeS, ER & D , Software products Sub-classification of ER & D and software products is to understand the pure play services and relate to job skills.

More Facts

  1. The US has traditionally been the biggest buyer of Indian IT exports; over 60 per cent of Indian IT-BPM exports were absorbed by the US during FY 2013.
  2. Firms in India became multinational companies with delivery centres across the globe—580 centres in 75 countries, as of 2012.
  3. The contribution of the IT Sector to India’s GDP rose to approximately 8 per cent in FY 2012–13 from 1.2 per cent in FY 1997–98. This is the reason why every state government is rolling out the red carpet to the IT industry.
  4. TCS is the market leader; accounting for about 10.1 per cent of India’s total IT and ITeS Sectors’ revenue.
  5. e.The top six firms contribute around 36 per cent to the total industry revenue, indicating the market is fairly competitive. Of the total revenue, about 80 per cent is contributed by 200 large and medium players.
  6. In addition to Indian IT companies, global IT companies like IBM, and Hewlett Packard (HP) have set up Global In-house Centres (GIC), also known as captive centres. They also operate in engineering services and software product development. In 2012, there were more than 760 GICs operating out of India, across multiple locations accounting for US$ 13.9 billion of export revenues, almost 21 per cent of the industry export revenues, and employing 20 per cent of the total manpower.
  7. Tier II and III cities are increasingly gaining traction among IT companies aiming to establish business in India.
  8. India’s internet economy is expected to touch Rs 10 trillion (US$ 161.26 billion) by end of 2018, accounting for 5 per cent of the country’s gross domestic product (GDP), according to a report by the Boston Consulting Group (BCG) and Internet and Mobile Association of India (IAMAI).

Employement Scenario in IT & ITES

  1. India is the world’s largest sourcing destination for the IT industry, accounting for approximately 67 per cent of the US$ 124–130-billion market. The industry employs about a 10-million workforce.
  2. The largest number of people (78 per cent or 2.3 million out of 3 million) are employed in providing IT and ITeS services for the export market.
  3. The employment in IT and ITeS is spread across large, medium, and small companies as shown in Table 17.2 Many graduates, without realizing this, chase jobs only in the large glamorous companies.
  4. The Indian IT sector primarily operates through six states— Karnataka, Andhra Pradesh, Maharashtra, Tamil Nadu, Haryana, and Uttar Pradesh. Major centres of top IT and ITeS firms such as TCS, Infosys, HCL, Tech Mahindra, Cognizant, and Cap Gemini are based in these states. Also, a majority of these centres are based in Tier I cities of these states, such as Bengaluru, Chennai, Hyderabad, and Noida. As infrastructure facilities in Tier I cities saturate and input costs increase, IT and ITeS companies are shifting their focus towards Tier II and III cities. Some of these cities include Ahmedabad, Pune, Jaipur, Nagpur, Bhubaneshwar, Mangalore, Guwahati, and Chandigarh.
  5. In the ITeS domain, Gurgaon (part of the National Capital Region) has the largest number of jobs and already many new jobs in this sector are being created in many Tier II cities across India.
  6. The IT and ITeS Sectors spend 2 per cent of the industry revenue (US$ 1.6 billion) on training employees. In fact IT companies have a huge training infrastructure created in smaller cities like Thiruvananthapuram and Mysore; 40 per cent of total spending on training is spent on training new employees.
  7. The sector has a relatively large number of women professionals— about 30–35 per cent of the total workforce. This figure is expected to increase to 5 million by the end of 2020. The high number of women in the sector is the result of a working environment conducive to their professional growth and various women-focused initiatives—such as maternity leave, relaxation zones, medico/psycho-counselling sessions, robust grievance redressal mechanisms, committees to handle cases of sexual harassment at work, and effective security and transport mechanisms. This explains why this sector is very popular among women graduates.
  8. h.The preference for graduates and postgraduates is almost 100 per cent in this sector. While engineers dominate the IT Sector, non-engineering graduates dominate the ITeS Sector.

In the next article, we will look into entry-level job roles in IT Industry

Author: T. Muralidharan
Name of publication: Telangana Today
Date published on:
published in: Hyderabad
Tags: Employability

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