India made up more than 18 percent of the global IT spending. However, the country had a modest beginning in the field. Lacked proper infrastructural facilities for software development, the government formulated a new software policy that allowed more participation and hassle-free trade procedures. Consequently, the sector witnessed an explosive growth especially post economic liberalization of the 1990s.
Within the global business community, India is famous for its high-quality IT outsourcing services. Catering to the needs of the major firms in Europe and North America, India is rightly called as the IT outsourcing hub. As of financial year 2020, India generated nearly 150 billion U.S. dollars in export revenue, five times the size of its domestic market. Among various sub-sectors, the IT services and IT-enabled services were the most sought after in the international market. IT services accounted for more than half of the export revenue generated by the information technology industry. As a result, the industry has created millions of jobs in the country.
While the IT sector in India ensures growth in revenue and employment, it still faces its fair share of challenges. Changing technologies, tough competition in the global market and the impact of the coronavirus pandemic have been testing its strength while providing new opportunities for future growth.
