India's software Industry is the most renowned IT-BPO Solutions provider all over the world. There are more than 500 companies in Indian that provide IT/BPO consulting and solutions. It is the only industry that has seen a rapid growth and has attracted numerous foreign companies in the recent decades. It constitutes about 7% of India's GDP. Some of these companies are Asia's leaders and Global players in IT solutions - TCS, Wipro, Infosys. Though 2008 hasn't been a good year for most of the IT, Banking sector related companies, India's IT industry has proved a remarkable growth during those tough times. Due to their strict regulations and strategic changes, they could adjust their revenues to record growth during those times.
After the recession ended, as claimed by the IT giants, the growth rate in these companies seemed to crawl up even more faster. A number of major deals ranging from hundreds of millions of dollars to billions of dollars were made after this period. IT is increasing !! They've started hiring like they did in the pre-recession period. Salary hikes/ Promotions also started gearing up. Now the IT industry has an employee strength of more than 5 lakh engineers and is expected to grow at a faster rate.
If we consider this year's recruitment news in India, TCS planned to hire 37000, Infy to hire 25000 and Wipro to hire another 15000 employees by the end of 2011. Apart from our home players, Global players like IBM, Accenture also have declared to hire around 20000 employees. So, one could imagine the growth rate of IT industry in India.
What are my concerns ??
With the rapid growth of IT industry, India's GDP increases. Great ! India starts moving from a 'Developing Nation' to 'Developed Nation'. When this transition starts, the rupee value raises against the dollar value. When this happens,
- India's IT industry that is majorly centered on foreign revenues, will be greatly affected.
- India's young blossoming IT talent will be affected
- India's GDP will be affected due to the lag of IT sector, unless new revenue strategies are implemented
So,
IT grows -> India grows -> Rupee Raises -> IT slows -> India slows ->Rupee falls -> IT grows
This could be the situation if current IT revenue sources are considered. But I dont think I'm 100% correct regarding the IT slowdown once rupee raises. I guess, by the time Rupee raises, India becomes digitized and could become a hub for IT projects.
After the recession ended, as claimed by the IT giants, the growth rate in these companies seemed to crawl up even more faster. A number of major deals ranging from hundreds of millions of dollars to billions of dollars were made after this period. IT is increasing !! They've started hiring like they did in the pre-recession period. Salary hikes/ Promotions also started gearing up. Now the IT industry has an employee strength of more than 5 lakh engineers and is expected to grow at a faster rate.
If we consider this year's recruitment news in India, TCS planned to hire 37000, Infy to hire 25000 and Wipro to hire another 15000 employees by the end of 2011. Apart from our home players, Global players like IBM, Accenture also have declared to hire around 20000 employees. So, one could imagine the growth rate of IT industry in India.
What are my concerns ??
With the rapid growth of IT industry, India's GDP increases. Great ! India starts moving from a 'Developing Nation' to 'Developed Nation'. When this transition starts, the rupee value raises against the dollar value. When this happens,
- India's IT industry that is majorly centered on foreign revenues, will be greatly affected.
- India's young blossoming IT talent will be affected
- India's GDP will be affected due to the lag of IT sector, unless new revenue strategies are implemented
So,
IT grows -> India grows -> Rupee Raises -> IT slows -> India slows ->Rupee falls -> IT grows
This could be the situation if current IT revenue sources are considered. But I dont think I'm 100% correct regarding the IT slowdown once rupee raises. I guess, by the time Rupee raises, India becomes digitized and could become a hub for IT projects.
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