IT INDUSTRY IN INDIA
The Indian information technology sector has been instrumental in driving the
nation's economy onto the rapid growth curve. According to the Nasscom-Deloitte
study, the IT/ITES industry's contribution to the country's GDP has increased to a
share of 5.2 per cent in 2007, as against 1.2 per cent in 1998. Further, the IT and
BPO industries are poised to clock revenues worth US$ 64 billion by the end of fiscal
year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40
billion and the domestic market estimated to clock over US$ 23 billion, according to a
study. Simultaneously, the Indian IT services market is estimated to remain the
fastest growing in the Asia Pacific region with a CAGR of 18.6 per cent, as per a
study by Springboard Research. India's IT growth in the world is primarily dominated
by IT software and services such as Custom Application Development and
Maintenance (CADM), System Integration, IT Consulting, Application Management,
Infrastructure Management Services, Software testing, Service-oriented architecture
and Web services. A report by the Electronics and Software Export Promotion
Council (ESC) estimates software exports to register a 33 per cent growth in the
current financial year with export figures during FY 2008 expected to reach US$ 45
billion. The country's IT exports have, in fact, come quite far, starting from a few
million dollars in the early 1990s. The Government expects the exports turnover to
touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum.
POLITICAL FACTORS:-
This is political factors which affect a business which can be government rules and regulation toward that particular business environment. For IT industry the Indian political structure is stable, but there are fears of hung parliament due to a lack of
clear majority in parliament creating fear of wrong investing in the minds of investor thereby reducing capital. U.S...