This chapter of the report examines the segment specific dynamics in the IT hardware segment of the Indian industry. The chapter focuses on the key products and vertical segments and highlights the key trends observed in the segment over the past year.

This chapter of the report examines the segment specific dynamics in the IT hardware segment of the Indian industry. The chapter focuses on the key products and vertical segments and highlights the key trends observed in the segment over the past year.

The rapid growth of ITES-BPO and the IT industry as a whole is having a deep impact on the socio-economic dynamics of the country. The sector has risen to become biggest employment generator with the number of jobs added almost doubling each year, has spawned a number of ancillary businesses such as transportation, real estate and catering, and is – almost single-handedly – contributed to a rising class of young consumers with high disposable incomes. Some of the lesser observed impacts of the IT revolution include the steady reversal of the brain drain, the evolution of e-governance in the country, and the potential it holds for narrowing the digital divide between urban and rural India.

The fifth chapter of the report examines the broader impacts of the industry on the society as a whole, highlighting the important role ICT can play in human development – in urban as well as rural societies.

This chapter of the report delves into the segment specific dynamics in the IT services and software segment, examining the industry’s performance in both, the domestic as well as the export markets; focusing on the key service lines and verticals; and highlighting the key trends observed in the segment over the past year.

This chapter of the report delves into the segment specific dynamics in the IT services and software segment, examining the industry’s performance in both, the domestic as well as the export markets; focusing on the key service lines and verticals; and highlighting the key trends observed in the segment over the past year.

This chapter of the report explores the segment specific dynamics of the ITES-BPO segment, examining the sector’s performance in both, the domestic as well as the export markets; focusing on the key service lines and vertical segments and highlighting the key trends observed in the segment over the past year.

This chapter of the report explores the segment specific dynamics of the ITES-BPO segment, examining the sector’s performance in both, the domestic as well as the export markets; focusing on the key service lines and vertical segments and highlighting the key trends observed in the segment over the past year.

Offshore outsourcing continues to gain momentum, becoming a mainstream phenomenon. In the wake of the changing global services landscape, Indian information technology (IT) and IT enabled services (ITES) continues to chart remarkable double-digit growth, with industry revenue in FY 2004-05 expected to exceed USD 28 billion.

This first chapter of the report outlines the top line performance of the four key segments of the industry, analyzing the size, growth and composition of the sector – and how it has changed over the past year. This section also benchmarks the Indian industry performance to that of the global industry highlighting the trends observed in each.

Though critics have often questioned the sustainability of the India advantage, India remains the worlds leading destination for offshore outsourcing of IT and ITES-BPO. India’s sustained leadership over other competing offshore sourcing destinations is driven by strong fundamentals comprising a large pool of qualified, English speaking manpower that is increasing each year; and a keen emphasis on delivering quality at a significant cost arbitrage.

Complementing the fundamental factors is the demonstrated emphasis on information security, the improving quality of telecommunication infrastructure – with its cost approaching globally competitive levels and strong government support – focused on improving basic infrastructure and developing policies and an effective regulatory regime that favour the growth of the industry.

The sixth chapter addresses the questions raised about the sustainability of the Indian advantage, highlighting the factors that contribute to India's continued dominance of the offshore outsourcing domain.

Although the forecast spends in the global IT-ITES industry remain moderate, the Indian industry is expected to continue on its significantly higher-than-average growth trajectory. As before, service exports will be the key drivers of this growth – suitably complemented by a booming economy and a growing domestic market.

This conclusion section of the report reviews the outlook for the global IT-ITES industry and the implications it holds for Indian IT-ITES. It highlights the key challenges faced and outlines the next steps for the industry and the government to ensure that India capitalizes on the opportunities that lie at its feet.