IT/Software/BPO                                           Back To Home
Business opportunities in India

The Indian IT sector is doing exceedingly well and will sustain the momentum in the coming years as well. India is gaining share from other parts of the world. The IT sector saw phenomenal growth in FDI in 2005 with $6.5 billion of investment. The total investment in IT bypassed the India's ITeS (IT enabled services) exports in 2004 ($5.7 billion) and was 48.3% of total IT exports


Business process outsourcing is another segment that is scripting its own success story, similar to the software sector. BPO along with software sector is expected to be the biggest employment creators in the coming years.

100% FDI is allowed in IT / software / BPO sector and there are numerous tax benefits for such companies under various schemes.

Foreign Direct Investment (FDI) Policy:

100% FDI is permitted in the Electronic hardware sector and the Software development sector under the automatic approval route. Industrial Licensing has been virtually abolished in the Electronics and Information Technology sector except for manufacturing electronic aerospace and defence equipment.

IT / ITes Export Trends:

The Software exports are projected to grow by $9 billion to $50 billion in fiscal 2008-09 from $41 billion in fiscal 2007-08 and $32 billion in fiscal 2006-07. Exports contribute nearly 65% of the Indian IT sector revenue. The United States and Britain are the biggest markets for India's booming software exports, accounting for about 80 percent of the country's $12-billionexports per year. ITeS/BPO exports grew by over 30 per cent from the previous year collecting revenues of US$ 10.9 billion in FY 2008.

Outsourcing Information Technology to India: Explaining Patterns of Foreign Direct Investment and Contracting in the Software Industry


In the past decade, U.S. software firms have increasingly utilized the low-cost information technology (IT) labor force in India. Companies wishing to capture the benefits of outsourcing can engage in contracting (hiring an Indian contracting company to perform the service) or foreign direct investment (FDI, opening an Indian subsidiary and hiring Indian employees). Modern FDI theories predict that Indian software outsourcing should occur primarily in the form of FDI. Contrary to the FDI theories, however, many U.S. companies are hiring Indian software contracting companies in order to use the lower-cost Indian IT labor force. This paper analyzes Indian IT outsourcing firms in order to understand the prevalence of contracting. The paper then refines previous FDI theory by recognizing a Hybrid Model in which contracting companies provide their clients with a combination of the advantages of both FDI and contracting.

Availability of high quality Infrastructure:

Eighty (85) out of the worlds 130 SEI CMM Level 5 Companies are from India. Some of the quality initiatives used by these companies are ISO9001,COPC,Six Sigma .Dedicated International quality software parks,special economic zones, Knoweledge sector industrial estates are available in India.International quality telecom infrastructure with high level of redundancies ,insulating centers from PSTN public switched telephone network quality is available in India.Further availability of multilevel back up is ensured.

Some of the MNCs undertaking R&D in India

Siemens- Medical imaging solutions,Embedded software for security applications. Samsung- Embedded software, Home Network,IPV6 Intel - End to end product development Motorolo -Embedded solution for 3G phones,UMTS,cable modem system Sun Microsystem –VLSI and embedded system engineering Texas Instruments – Embedded software for broadband ,DSP,Wireless terminal,OMAP Delphi –Web based tool for automated engineering,modelling and business processes Bosch – embedded software for control units,tools and diagnostics

Major IT Parks in India

Kerala - Technopark

Karnataka – Whitefield EPIZ

Maharashtra – SEEPZ, Hinjewadi, Talawade,

Tamil Nadu – Siruseri

Hyderabad – Uppal, Manikonda

West Bengal – Salt Lake

Karnataka – International Tech Park, Whitefield

Hyderabad – Hitech City,

Tamil Nadu – Tidel, OMR

Maharashtra – Mindspace, Magarpatta Cybercity,

Karnataka – Embassy Golf Links, RMZ Ecospace, Bagmane Technology Park, etc.

Hyderabad – Mindspace, RMZ, Vanenburg

Kolkata – DLF IT Park, Bengal Intelligent Park, etc.

NCR – DLF Cybercity

Call Centers in India / Call Centres in India

FDI up to 100% is allowed subject to certain conditions.

Business Process Outsourcing BPO in India

FDI up to 100% is allowed subject to certain conditions.

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