The IT & ITes sector includes IT services, Engineering Design, R&D services, ITes (IT enabled services), BPOs and KPOs. Today, the IT and ITes sector lead the economic growth in terms of employment and revenue generation. Indian firms, across all other sectors, largely depend on the IT & ITes service providers to make their business processes efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries.
Factors leading to growth in the IT/ITes sector are:
Low operating costs and tax advantage
Favorable government policies
Technically qualified personnel easily available in the country
Rapid adoption of IT technologies in major sectors as Telecom, Manufacturing and BFSI
Strong growth in export demand from new verticals and non-traditional sectors as public sector, media and utilities
Use of new and emerging technologies such as cloud computing
SEZ as growth drivers; as more of SEZs are now being set up in Tier II cities and about 43 new tier II/III cities are emerging as IT delivery locations
It is quite evident that the future growth of IT and ITeS will be fueled by the verticals of climate change, mobile applications, healthcare, energy efficiency and sustainable energy. There would be more customers and more SMEs will go for IT application and services. The country's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market.
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