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  1. 1. Imperial Journal of Interdisciplinary Research (IJIR) Vol-3, Issue-11, 2017 ISSN: 2454-1362, http://www.onlinejournal.in Imperial Journal of Interdisciplinary Research (IJIR) Page 51 Technopreneurship and Development of IT and ITeS Industry in India Dr. C. Paramasivan1 & M. Selladurai2 1 Assistant Professor 2 Research Scholar 1,2 Department of Commerce, Periyar E.V.R. College (A), Tiruchirappalli, Tamil Nadu Abstract : Primarily, among numerous sectors of the economy IT and ITeS industry is one whose service is required for the rapid growth of the economy and primarily the information technology and information technology enables services sector has covered the in-house development of the nations’ infrastructure. In general, IT and ITeS handles most of the official and unofficial information. There is a lightning growth of Indian software industry with the participation of global corporate dominators for the past two decades. Indian IT sector has contributed most in the production and export of the software based applications to all over the universe. This paper highlights the growth and performance of IT and ITeS and also examined the contribution and development of IT and ITeS in Indian industry. Key Words: IT and ITeS, IT industry in India, Indian economy, Technopreneurship Introduction Information Technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a micro-electronics-based combination of computing and telecommunications (Vijayasri, 2013). Information Technology is an industry which transforms the human’s multi skilled talents into commercial one with the help of computers and other supporting equipment. Till now the peoples of the society believes that, Information Technology is a corporate world deals with computers only. But, the development in various information delivery systems like Radio, TV, Telephone, Newspapers, Internet and of course Computers, information technology refers to the entire frame of social media devices used to communicate and transformation of information by various target groups in the society. Information Technology made a huge revolution in the field of information and communication systems. India is the world's major outsourcing destination for the IT and ITeS industry with US$ 124-130 billion market (67% of the global production). The IT and ITeS also made some significant demand in the Indian education sector, particularly in engineering and computer based graduates has employing 10 million workforces. The Indian IT and ITeS has mainly classified into four major segments - IT services; Business Process Management (BPM); software products and engineering services; and hardware (Meenu, 2016). The report of NASSCOM describes the growth rate of IT sector is projected at a rate of 12- 14% for the financial year 2017-18 in currency terms and it is expected to be triple in the year 2025 with US$ 350 billion. IT Industry in India The IT industry has built very valuable brand equity for itself in the global markets. The Indian IT Industry comprises of software industry and information technology enabled services, which even includes business process outsourcing industry (Vijayasri, 2013). The first IT company in India has established in 1970 with the entry of Tata Consultancy Services into the domain for its outsourced work. TCS began its outsourced work to organizations like Central Bank of India and Bombay Telephones. Within a few years TCS began promoting young Indian engineers to a joint trade partner in the United States for commercial purpose. The trainee engineers were performed excellent to complete their projects on time and TCS started to expand their business outlets in Germany, Korea and Japan. In later years, software development and hardware development becomes independent and software computing runs in its own platform. This policy caused the production and relocates its industry from Bombay to Bangalore, Delhi, Chennai etc., These are the policies for the development of Indian IT industry to compete with world-class. Today, IT companies in India namely Tata Consultancy Services, Wipro, Cognizant, Infosys, HCL, Mahimatech were familiar in the global marketplace for their IT proficiency. Indian IT Industry's improvement and involvement in the world's information technology sector holds the
  2. 2. Imperial Journal of Interdisciplinary Research (IJIR) Vol-3, Issue-11, 2017 ISSN: 2454-1362, http://www.onlinejournal.in Imperial Journal of Interdisciplinary Research (IJIR) Page 52 maximum participation. Metro Cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad has become the favourite places for all the big corporates like HSBC, Dell, Microsoft, Hewlett Packard and also for many Indian MNC firms have set up their main offices in these top cities (Geetha Vaidyanathan, 2007). These metro cities offers good infrastructure with large floor space and high speed telecom facilities. These were the major reasons for the high growth of Indian IT sector and this change turns the global companies towards India. Major IT Locations in India Rank City Features and Prospects 1 Bangalore Popularly known as the Silicon Valley of India and leading software exporter from India. Bangalore is considered to be a global information technology hub of India. 2 Chennai Chennai is the second largest exporter of IT and ITeS of India and it is the BPO hub of India. Chennai has the largest operational centres like TCS, Infosys, Cognizant etc. 3 Hyderabad Hyderabad is a major IT hub in India which is also known as Cyberabad which consists of many MNC’s namely Google, Facebook, Microsoft, Amazon, Oracle, Electronic Arts etc. 4 Mumbai The Financial capital of India, but recently many IT companies have established offices. 5 Delhi The National Capital Region comprising Delhi, Gurgaon and Noida are clusters of software development. 6 Pune Major Indian and International Firms present in Pune. Pune is also CDAC Headquarter. 7 Kolkata The city is a major back-end operational hub for IBM, Texas Instruments, Intel, Deloitte, Sun microsystems (Oracle). 8 Bhubaneswar The capital city of Odisha, an emerging IT and education hub, is one of India's fastest developing cities. 9 Thiruvanathapuram The capital of Kerala, now houses all major IT companies including Oracle, TCS, Infosys and contributes in IT export of India. Review of Literature Taranjit Singh and Batra (2014), had criticized that the IT industry in India has attracted its fair share of criticism. This was primarily leveled against the industry's excessive political influence - as articulated through its association, NASSCOM - which, it is claimed, far exceeds its economic contribution to the country. This has allowed the industry to secure the support and resources of the Indian state ahead of other sectors of the national economy where the developmental returns would be greater. According to the Confederation of Indian Industry report, India's IT- business process outsourcing industry’s revenue is expected to cross US$ 225 billion mark by 2020. Rahul Chattopadhyay (2016), had explained the rise and growth of India’s IT industry. In general, ITeS covers all aspects of managing and processing information. The last decade of 20th century has witnessed IT sector have revolutionary effect of the humanity. In the last two decades there is 20 times increase in export revenues for the IT industry, employing over two million people. Today the whole IT industry is playing a major role in Indian economy and shows how to analyse the growth and performance of information technology industry in India. Various aspects of information technology industry like composition, revenue, exports, wealth creation, size and share, localization etc. were studied. Shreelatha and Bagali (2014), had examined the acceptance of gender diversity between employees and how the effect of diversity management courses and practices has taken by different IT companies and also investigates influence of difficulties present in IT industry. The population for the study comprises of employees from Information Technology firms including IT servicing companies and ITeS-BPO companies has situated at Bangalore. With the help of focus group interview and discussions with HR managers of reputed companies, questionnaire was developed by the researcher. The tool was found to be reliable with advanced variables framed in questionnaire. Growth of IT Industry in India The IT and ITeS Industry in India has grown quickly and earned a brand identity by its
  3. 3. Imperial Journal of Interdisciplinary Research (IJIR) Vol-3, Issue-11, 2017 ISSN: 2454-1362, http://www.onlinejournal.in Imperial Journal of Interdisciplinary Research (IJIR) Page 53 huge software exports. The IT and ITeS industry has two major components such as IT services and Business Process Outsourcing. The development of the service sector in India led by the software sector contributing much more in nation’s income, employment and exports. The metro cities like Bangalore, Mumbai, Chennai, Delhi, Pune, Hyderabad and Kolkata has records nearly 90% of the software units export. India registers a gradual increase in the total export of the IT and IT enabled service throughout the year from the beginning. Source: Compiled data of Software Technology Parks of India It is revealed that the exports of IT and ITeS in the year 2012-13 was Rs.2,51,497 crore and it has been increased to Rs.2,73,313 in 2013-14. In the following years of 2014-15 and 2015-15 was Rs.2,93,797 crore and Rs.3,19,596 crore respectively. The gradual and continuing growth in the exports of the IT and ITeS leads India a master blaster in the field of software based business. It was successfully recorded the exports performance over 200% from the year 2006-07 to the year 2015- 16. Finally, Indian IT and ITeS unit exports has increased by Rs.3,19,596 crore in 2015-16 that was increased by 8% as compared to last year. State wise Software Exports made by registered units through STPI (₹ in Crores) Name of the State/UT 2015-2016 Name of the State/UT 2015-2016 Andhra Pradesh 477.93 Madhya Pradesh 355.00 Bihar 7.25 Maharashtra 64,063.59 Chandigarh 700.79 Odisha 2,179.72 Chhattisgarh 23.29 Puducherry 182.55 Delhi 1,442.30 Punjab 324.83 Goa 117.17 Rajasthan 803.97 Gujarat 2,224.55 Tamil Nadu 33,905.30 Haryana 19,265.44 Telangana 41,480.47 Karnataka 1,25,418.53 Uttar Pradesh 16,450.68 Kerala 3,008.91 West Bengal 6,990.00 Source: Software Technology Parks of India, Annual Report Indian IT companies such as TCS, HCL, Infosys and Wipro becomes so popular around the world. Now-a-days Bangalore is called the Silicon Valley of India because of its massive contribution (40%) in the Indian IT and software exports. It grabbed the head quarter of the India’s largest companies. Mumbai placed second (20%) in the IT and software exports with large number of MNC companies like TCS, Cognizant, Capgemini, Reliance, L&T Infotech, Patni, Naukri etc., within 144.214 180.155 207.358 205.505 215.264 226.712 251.497 273.313 293.797 319.596 0 50.000 100.000 150.000 200.000 250.000 300.000 350.000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 IT/ITeS Unit Exports (₹ in Crores)
  4. 4. Imperial Journal of Interdisciplinary Research (IJIR) Vol-3, Issue-11, 2017 ISSN: 2454-1362, http://www.onlinejournal.in Imperial Journal of Interdisciplinary Research (IJIR) Page 54 its surroundings. The other metro cities like Chennai (11%) and Hyderabad (13%) too added their participation in the IT and software exports during the financial year 2015-16. Government Initiatives After the economic reforms of 1991-92, major fiscal incentives provided by the Government of India and the state governments like liberalization of external trade, elimination of duties on imports of information technology products, relaxation of controls on both inward and outward investments and foreign exchange, setting up of Export Oriented Units (EOU), Software Technology Parks (STP), and Special Economic Zones (SEZ), has enabled India to flourish and acquire a dominant position in world’s IT scenario (Rahul Chattopadhyay, 2016). The above statistic shows that, there was a gradual and has no negativity in the growth in the overall revenue of the IT and ITeS industry since its first operation. The total revenue generated by the IT and ITeS industry in India between the years 2008-09 and 2015-16. In the year 2013-14, a total of US$ 106.3 billion of revenue was created by the Indian IT industry, which was rejuvenated in the year 2014-15 with massive wave of increasing revenue by 132 billion U.S. dollars and it has raised by over 25% when compared with last year. In 2015-16, the revenue generated by the Indian IT and ITeS sector was 143 billion U.S. dollars. There was an increasing trend with more than 200% in its earnings of last eight years. Conclusion It is concluded that, the IT and ITeS sector is the most wanted and highly contributed towards the GDP of the nation. It should be developed from its grass roots for the rapid growth of the economy. However, this achievement can be attained by the Indian IT industry by re-inventing itself through its new trend of business models and make partnerships with leading global corporates. India welcomes investment from all over the universe to operate the profitable business. This study points out that, the revenue of IT was recorded about US$ 143 billion in the year 2015-2016 and the share of total Indian IT and ITeS unit exports has increased by Rs.3,19,596 crore in 2015-16 that was increased by 8% as compared to last year. India aspires to transform itself into a truly developed and empowered nation by 2020. References 1. Bhattacharjee, Sankalpa, and Debkumar Chakrabarti. "Heterogeneity in Indian IT- ITeS industry: is a uniform policy enough?" International Journal of Business Information Systems 13.3 (2013): 317-342. 2. Meenu. “Performance of IT and ITeS Industry in Indian Economy” International Journal of Enhanced Research in Management & Computer Applications. 5.7 (2016): pp 16-20 3. Paramasivan, C. and M. Selladurai, "Emerging Trends in New Start-Up 59,9 64 76,3 81,8 95,7 106,3 132 143 0 20 40 60 80 100 120 140 160 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Revenue Earned by Indian IT Sector (in Billion US Dollors)
  5. 5. Imperial Journal of Interdisciplinary Research (IJIR) Vol-3, Issue-11, 2017 ISSN: 2454-1362, http://www.onlinejournal.in Imperial Journal of Interdisciplinary Research (IJIR) Page 55 Technopreneurs." IJRDO-Journal Of Business Management 2.7 (2016): 81-88 4. Parthasarathy, Balaji. "The Political Economy of the Indian Software Industry" Political Economy and Information Capitalism in India. Palgrave Macmillan UK, (2005): 153-173. 5. Preminda J. Fernando. “The Development of the Software Industry in Postreform India: Comparative Regional Experiences in Tamil Nadu, Andhra Pradesh, and Kerala” Asia-Pacific Development Journal. 17.1 (2010): 145-151. 6. Priyadarshini, M. "Organizational Role Stress in Information Technology Industry - An Empirical Research" Asia Pacific Journal of Research. 1.35 (2016). 7. Priyadharshini, J. and M. Selladurai. “Technopreneurial Education and its Impact in India” Asian Journal of Multidimensional Research 11.5 (2016): 23-31 8. Rahul Chattopadhyay. “The Evolution and Growth of IT Sector in India” International Journal of Management and Commerce Innovations. 3.2 (2016): 790- 797. 9. Rao, Shreelatha R., and M. M. Bagali. "Workforce diversity and management: An emphirical study on relationship between diversity management practices, obstacles and acceptance of gender diversity among employees in IT industry; Bangalore" IOSR Journal of Business and Management. 16.2 (Feb 2014): 12-25. 10. Selladurai, M. "Conceptual Framework on Technopreneurship." SELP Journal of Social Science 7.27 (2016): 92-97 11. Vaidyanathan, Geetha. "Technology parks in a developing country: the case of India" The Journal of Technology Transfer. 33.3 (2008): 285-299. 12. Venkatraman, Shriram. "Social Media in South India" London, UCL Press (2017). 13. Vij Taranjit Singh, G.S. Batra. “Information Technology and IT Enabled Services Industry in India.” International Journal of Computing and Corporate Research 4.1 (2014) 14. Vijayasri, G. V. "The Role of Information Technology (IT) Industry in India" Abhinav International Monthly Refereed Journal of Research in Management & Technology. 2.8 (2013): 54-64. 15. Information Technology Department “Policy Note 2011-2012” 16. Ministry of Electronics & Information Technology “Annual Reports” 17. Software Technology Parks of India “Annual Reports” 18. http://www.ibef.org/industry/informationt echnology.aspx 19. http://www.investindia.gov.in/it-and-ites- sector