indian IT industry
PANKAJ GHEMAWAT
AUGUST 2007
STEVEN A. ALTMAN
Industry Case Study:
The Indian IT Services Industry in 2007
“Many years ago, there was an industrial revolution; we missed it for reasons beyond our control. Today there is a new revolution – a revolution in information technology, which requires neither mechanical bias nor mechanical temperament. Primarily it requires the ability to think clearly. This we have in abundance. We have the opportunity to participate in this revolution on an equal basis; we have an opportunity, even, to assume leadership in this revolution. If we miss this opportunity, those who follow us will not forgive us for our tardiness and negligence.”
—TCS Deputy Chairman F. C. Kohli, 1975 Speech to Computer Society of India
“India is likely to be the next software superpower.”
—Microsoft Chairman Bill Gates, 2000 Speech at Davos
“Saudi oil, Japanese cars, and Indian services – some industries can truly transform a nation.”
—NASSCOM McKinsey Study 2005
In the fiscal year ended March 2007, the Indian IT (information technology) Services industry posted revenues of $23.5 billion, including $18.0 billion in exports. 1 With sustained growth above
30% per annum since the early 1990s, the industry had spurred a global offshore services boom reaching far beyond IT itself. India had become a global center for offshore execution of business processes ranging from call center operations to advanced data analytics and engineering. Including these IT-Enabled Services and products, India’s technology sector earned $39.6 billion, contributing
5.2% to India’s GDP, and was projected to reach $73-75 billion by 2010. 2 ,3
India was succeeding in IT Services despite a domestic context that still faced substantial development challenges, as illustrated by the country’s rankings in the World Economic Forum’s
Global Competitiveness Report. For example, India ranked 60th out of 117 countries on “basic requirements” such as institutions,
AUGUST 2007
STEVEN A. ALTMAN
Industry Case Study:
The Indian IT Services Industry in 2007
“Many years ago, there was an industrial revolution; we missed it for reasons beyond our control. Today there is a new revolution – a revolution in information technology, which requires neither mechanical bias nor mechanical temperament. Primarily it requires the ability to think clearly. This we have in abundance. We have the opportunity to participate in this revolution on an equal basis; we have an opportunity, even, to assume leadership in this revolution. If we miss this opportunity, those who follow us will not forgive us for our tardiness and negligence.”
—TCS Deputy Chairman F. C. Kohli, 1975 Speech to Computer Society of India
“India is likely to be the next software superpower.”
—Microsoft Chairman Bill Gates, 2000 Speech at Davos
“Saudi oil, Japanese cars, and Indian services – some industries can truly transform a nation.”
—NASSCOM McKinsey Study 2005
In the fiscal year ended March 2007, the Indian IT (information technology) Services industry posted revenues of $23.5 billion, including $18.0 billion in exports. 1 With sustained growth above
30% per annum since the early 1990s, the industry had spurred a global offshore services boom reaching far beyond IT itself. India had become a global center for offshore execution of business processes ranging from call center operations to advanced data analytics and engineering. Including these IT-Enabled Services and products, India’s technology sector earned $39.6 billion, contributing
5.2% to India’s GDP, and was projected to reach $73-75 billion by 2010. 2 ,3
India was succeeding in IT Services despite a domestic context that still faced substantial development challenges, as illustrated by the country’s rankings in the World Economic Forum’s
Global Competitiveness Report. For example, India ranked 60th out of 117 countries on “basic requirements” such as institutions,