Through a combination of Greenfield initiative, cross-border mergers and acquisitions and other sorts of alliances with local companies, the Indian IT industries are working to improve their world wide delivery capacities, so that they can better avail of the benefits of multi-country service delivery capabilities to better mange evolving customer requirements and execute end to end delivery of new services. World wide software titans like Oracle, SAP, Microsoft etc have established their development centers in India.

Despite all the media attention on security breach caused by a certain call centre executive, India’s record on information security is near spotless compared to many. There are continuing efforts to strengthen the information security environments of the country. Initiatives have been taken to propose amendments to the IT Act 2000, increase communication between industry players and enforcing agencies. A huge percentage of major IT companies have adopted internationally accepted standards like those of ISO, CMM, Six Sigma, etc thus gaining the reputation as a credible sourcing destination. Over 400 Indian companies have been granted certificates of quality out of which 82have been designated as SEI CMM Level 5, higher than that of any country operating in this field. Over 1,287,000 people are employed in the It and ITES- BPO in 2005-06 and the number is growing by leaps and bounds.

Industry performance

According to NASSCOM the Indian software and ITES industry recorded a growth rate of 31.4 % during 2005-06 notching up aggregate revenue of US$29.6 billion up from 25.5 billion in 2004-05. In fact the industry watchers are confident that this sector will hit the 60 billion mark by 2010.

The ITES BPO sector has hit a whopping growth rate of 37% and pulled in revenues of US$6.2 billion, thus emerging as the key cause of the growth of Indian software and ITES industry. Consumer electronics to is impressive, having achieved at 10% growth over 2004-05’s Rs16, 800 crore to reach the Rs18, 500 crore mark. The fastest growing products in this sector are color TV, DVD players and home theatre systems.

The sale of personal computers is poised to hit 47 lakh mark during the year 2005-06. The communication and strategic electronics sector too is showing a robust growth of about 10 percent.

The production and growth trends during the last five years have been as follows:

According to NASSCOM, the impressive performance of the IT-ITES sector was largely due to factors like

The introduction of a more efficient global delivery model,
The bagging of large IT outsourcing deals with larger India-based delivery shares,
The bagging of large contract by the country's players.
Ever-deepening customer relationships,
Cross border mergers and acquisitions,
The move of the industry towards a stable pricing model

Indian IT and ITES companies have moved up the value chain and have expanded their product and service portfolios and have grown towards higher value operations and achieved increased grasp of engineering and product development services. India’s edge in the off shoring arena was based on elements like

Accessibility of skilled labor
A favorable business environment,
Focus on security of information
Operating excellence by leading IT-ITES vendors and relevant financial structures.