Development of IT sector in India
History of Information Technology In India:
History of IT sector in India before 1991
In 1965, immigration laws in USA were modified and the Restrictions on immigrants were reduced considerably. As a result a lot of Indian professionals migrated for research opportunities in USA. The IT revolution in USA and the much fancied Silicon Valley in the US during the 80s and 90s could not have been possible without the work of these migrated Indians. What this migration did for the Indian IT industry was creating innumerable
opportunities in the USA in the IT sector. Due to the fast growing IT sector in USA, there was a need for IT professionals outside USA. India had a huge number of educated people and the education in India being in English, there was a large population of English speaking technically strong people in India. Hence outsourcing of work started gaining momentum and this led to the huge boom in the IT sector in India, whose most of the work is exporting software and software services to the US and other overseas clients.
Tata Consultancy Services (TCS) was started by the TATA group for software development services in India in 1968. TCS started the software services by developing punched card facilities for TATA steel employees (TSICO). The first overseas client for TCS was Burroughs Corporation, United States. The job of TCS was to write software code for the Burroughs machines in 1974. With word of mouth, TCS grabbed a number of projects, small and big during the following years and today TCS is India's top IT
company with a turnover of more than $10 billion. In 1966, Azim Premji became the chairmen of the large company WIPRO and the focus of WIPRO was concentrated on the IT services sector. Patni Computer Systems started developing software and providing services since the beginning of the company in 1972 (At that time it was named Data Conversion Inc). In 1981, Infosys was founded by Narayan Murthy and his colleagues. Infosys was completely committed towards providing quality software services and also developed an IT business model which was later followed by most of the IT companies in India.
The Indian economy during this period was completely controlled by the Indian Government and there were strict restrictions and regulations for private business entities in India. Hence there was no major growth in the IT sector in India till 1991.
Economic reforms in 1991 and development of IT sector in India
The Indian government had strict control over the private business entities in India before liberalization of economy in 1991. Moreover, the wide area networks and internet lines were completely controlled by the central government. As a result, the Indian IT sector was totally held back due to these restraints on the functioning of the software services providers.
The first major IT reform by the Indian Government was the creation of corporation called Software Technology Parks of India (STPI). This corporation provided satellite links to major IT developers enabling them to transmit the work done in India directly abroad.
IT & ITeS Industry in India
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery centre’s in about 80 countries across the world.
India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country.
India’s IT & ITeS industry grew to US$ 167 billion in 2017-18. Exports from the industry increased to US$ 126 billion in FY18 while domestic revenues (including hardware) advanced to US$ 41 billion. Spending on Information Technology in India is expected to grow over 9 per cent to reach US$ 87.1 billion in 2018.*
Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.
Some of the major developments in the Indian IT and ITeS sector are as follows:
• Nasscom has launched an online platform which is aimed at up-skilling over 2 million technology professionals and skilling another 2 million potential employees and students.
• Revenue growth in the BFSI vertical stood at 10.3 per cent y-o-y in the first quarter of 2018-19.
• As of March 2018, there were over 1,140 GICs operating out of India.
• Private Equity (PE)/Venture Capital (VC) investments in India's IT & ITeS sector reached US$ 7.6 billion during April-December 2017.
Some of the major initiatives taken by the government to promote IT and ITeS sector in India are as follows:
• The government has identified Information Technology as one of 12 champion service sectors for which an action plan is being developed. Also, the government has set up a Rs 5,000 crore (US$ 745.82 million) fund for realizing the potential of these champion service sectors.
As a part of Union Budget 2018-19, NITI Aayog is going to set up a national level programme that will enable efforts in AI^ and will help in leveraging AI^ technology for development works in the country.
Analysis of Reasons and Challenges Development of IT sector in India
National Task Force, NTP and IT Act, 2000 helped IT sector grow in India
The NDA(National Democratic Alliance) government, under the leadership of prime minister Atal Bihari Vajpayee, included the development of IT as the top priority in their long term agenda. Indian National Task Force was formed for this purpose which overtook the development of IT services in large and small IT enterprises in India. The National Task Force, within 3 months, provided a detailed report on the Indian IT and technological industries with more than 100 recommendations which would help improve the IT services in India. A swift action plan by the Central Government towards IT services growth was executed and all the recommendations were acted upon sooner than later. The result of these efforts from the Indian Government bore fruit with the IT exports touching more than $50 billion. Indian economy was no longer that of a developing nation, but at par with those of the developed nations in the world
IT jobs in 2020: Preparing for the next industrial revolution
We examine recent research on how the 'fourth industrial revolution', driven primarily by AI and automation, is likely to affect the jobs market, both generally and in the IT sector
5 Sectors on a Hiring Spree
India's journey on the path of economic reforms has transformed it to one of the world's fastest growing economies. Its large and growing population is its best asset and can quadruple GDP and catapult India to the league of developed economies over the next decade. All this if a billion could be transformed into a productive workforce.
1. INFORMATION TECHNOLOGY
The IT sector has been India's sunshine sector for quite some time now. The industry has contributed considerably to changing India's image from a slow developing economy to a global player in providing world class technology solutions. According to the IBEF (India Brand Equity Foundation) figures, the Indian IT industry is set to touch $225 billion by 2020.
India's telecom story is only getting better. According to Zinnov estimates, India already has nearly 850 million mobile phone subscribers; with a 15% smart phone penetration. All this points to a penetration that is fuelling the growth of enterprise mobility in India, which will lead to significant employment growth.
There are clear indications that healthcare are going to be a major sector that stimulates economic growth and contribute to employment.
Over 40 million new jobs are expected to be generated by 2020, as per a report titled 'India's New Opportunities-2020' by the All India Management Association, Boston Consulting Group and the Confederation of Indian Industries (CII). The Indian healthcare industry also has advantages over other developing countries in becoming a global hub for medical tourism. The medical treatment and educational services in India are a fraction of the cost in developed countries.
India's infrastructure growth has been exponential over the past decade. Today, we are the fourth largest and probably the second-fastest growing economy, with infrastructure being one of the cornerstones. The infrastructure industry in India is highly fragmented and hence difficult to gunge its exact size and the jobs it generates each year in absolute terms.
Over the past few months, the retail sector has grabbed headlines with talks of 100% FDI in single brand retail, which is currently capped at 51%. While the outcome is still undecided, the opening up of India's retail will create a stronger, organized industry that will help in generating employment.
IT Industry growth rate
IT industry is having very healthy growth rate in terms of revenue about 20-30%; currently having 10 million (1 crore) IT professionals (including BPO/KPO etc).
So in 10 years it is expected to only double (2 crore IT jobs) instead of 4 crore jobs. Why?
• Automation will take up more jobs, Automation is only possible in testing, in our lifetime we will not see machine becoming intelligent to write code automatically.
• Make in India will surely create more jobs in India for IT professionals.
• Most of the projects are already created; only developing countries need to automate system.
There will be no survival without involving IT.
• Products are taking up more jobs as now chat bots, customization product; these are easy to Deploy/upgrade and cheaper to maintain. However, product lack flexibility to some extent and internal representation is not exposed.
• IT will create more jobs for other sectors: Banking, manufacturing, finance, sales. Jobs n all these sector will increase exponentially.
1. Change of Technology
In every 2 years, we have whole new set of technologies. IT engineer has to learn what is in the market to survive. However, there are two sets of technologies - one which matures with time (Java,TIBCO, Sales Force, Oracle) and another which has hype and may or may not exist in future (react, node, prototype,NoSQL etc). I have worked on dozens of technologies, which are no more.
Onsite-Offshore model will change and there will be more thing driven from offshore (core). Onsite, will reduce (if exist).
2. Salary model
It means that if you start job at 2.5 LPA (Lakhs Per Annum) in 2006 then on average after 10 years experience your package will be just near 7 LPA that means 42K in hand.
Fresher and 0–5 years experience - will be paid extremely less as always 5–10 years experienced: Will make good money to survive but nothing to save. Seniors 10+ - They will be architects/individual contributor or delivery managers and they will enjoy handsome pay packages. Geeks and Expert 15+ - It will be new category, they will decide pay package for themselves, so if you are 10+ and you are mad about technology. You will be the one, who will get package beyond thoughts and imagination. From India prospective, they can expect package similar to US citizen. However, it will be possible if you survive pyramid problem
3. Internet/startup bubble -
Internet consumption will go 10 times from what it is now. There will be new huge user base.
But there is again pyramid problem currently distribution is
so lets say we have 20 lakh jobs for 10+ experience in 10 years down the line 45% will grow and it. wil fight for approx 40 lakh job and it will be divided in 20 lakh(10+), 20 lakh(20+). Lets say 45 lakh resources, 2 lakh resources will leave IT. So 23 lakh resources surplus! So they have to bear in 5–10 years experience slot and hence they will paid less or will strive for survival.
So danger zone will be 5 - 15 years experience resources! This will make IT most unstable job market to join after 5 years.
People like me, will have 20+ years experience and will get the cream as we have seen base frameworks, architectures, which may not be exposed to future IT engineer.
Big Data, Cloud, Micro services etc and new technologies will create jobs but it can’t exceed above mentioned numbers.
Future of IT Engineer in INDIA
Though India is fastest growing country towards spirituality, IT will remain most stressful job with least ROI. IT people have to study throughout their life and it is unnecessary burden. Continuous use of mind will make it tough; packages of non- IT jobs are expected to grow, so again IT demand will decrease. If your child is doing 12th then IT stream may not be best, unless he/she is diehard fan of computer programming. In future, any job will give money equivalent to IT engineer with that experience.
IT pay packages seen just 10–20% growth in a decade; while inflation crossed 120%. We can expect same in next decade also.
4. Security analyst
Cyber security professionals are already in great demand, and that will continue into the future, as attacks grow more sophisticated and technologies to fight them advance.
The role will likely evolve to include more data skills and AI skills,.. "Security will remain very, very important, and we're seeing changes from a reactive security model to a proactive one,". "You're going to see more of a threat-hunting, artificial intelligence-enhanced model."
5. Cloud engineer
As the vast majority of companies move important systems to the cloud, more and more are choosing a hybrid approach, with multiple vendors. In the coming years, cloud engineers will develop solutions at scale that are a mix of both in-house technology and outside systems -- going beyond Amazon engineers working on AWS or Microsoft engineers working
6. App developer
Across both end users and vendors, app developers will be in large demand in 2020,. "It's really the intersection of where technical capability comes to face the business need," This could be a higher level role than simply coding, according to Forrester analyst Andrew Bartels: The developer may be someone who identifies a need and designs what the code would look like, and sends it off to someone else to do the actual coding.
7. Business intelligence (BI) analyst
BI analysts gather data from a number of sources, include internal software, competitor information, and industry trends, to develop a sense of where the company stands in the industry and how they can both grow and cut costs.
These professionals act as a counterpart to the app developers, who start from the app and take requirements in, Bartels said. The business analyst starts with the business side, and considers what the company needs in terms of apps to make the process work, he added.
8. DevOps lead
As more app developers and business analysts come on board, DevOps teams will also need to be expanded to oversee and coordinate work between those groups, Bartels said.
These professionals bring skills in development and project management that are required in many companies, even outside the context of software development,. They may be found under different titles in the future, but the skill sets will continue to be in demand.
"Every single company wants to run their engineering organization as efficiently and as effectively as possible, because that's one of the biggest cost enters," Mukherjee said. "DevOps plays a very important role in driving better efficiency and delivering software faster for those companies."
9. Database administrator
Database administrators will become more in-demand by 2020, particularly as companies move toward more software offerings that include AI, and the ability to create AI-powered models,. "Having well-maintained databases is really the secret to allowing those products to work effectively," he added.
10. User support specialist
As technology becomes deeply integrated into the operations of business units, more employees will need assistance from support specialists, especially as the workforce transitions,"As companies go through digital transformations, suddenly they find their operations increasingly interwoven into these systems," he added. "we're going to need the professionals who can support that."
With all of these positions and new skills on the horizon, employers need to be proactive in providing training to workers, Bartels said.
"One of the things that we've seen is a fast pace of change in the skills that are required and consequently, the importance of having training mechanisms in place to be continually upskilling your workers for the new types of skills that may be coming in demand," Bartels said. "Don't assume that this problem will take care of itself. Be proactive in terms of identifying skills gaps, putting in place training to help close those gaps, making sure that you really are focused on your human resources."
1. Artificial Intelligence
It covers technologies that are used for prediction purpose. The technology stack of AI constitutes
• Machine Learning Deep Learning
• Computer Vision Human Computer Interaction
2. Data Science
Data Science is all about cleaning, analyzing, organizing, preparing and visualizing the data.
It requires the following things to be included:
• Statistics Machine Learning
• Data mining Data Analytics
3. Big Data and Cloud Computing
These are another boom areas to be considered as the trending technologies in the present IT sector . It is because of the importance of data in the life of every individual and consistent improvement in social networks and ecommerce traffic.
4. Full Stack Development using MERN/MEAN
M-MONGODB A-ANGULAR R-REACT E-EXPRESS.JS N-NODE.JS
5. ANDROID DEVELOPMENT
As the internet users are more comfortable with using android apps than websites, the demand of android development becomes very high. The two popular ways of building android apps are through:
6.Business Intelligence and Data Visualization
For every business,there is a lot to deal with data. Data visualization becomes essential on every business and there is large demand in this area.
The popular tools of BI and Data Visualization are:
• Tableau PowerBI
As the role of manual monitoring and surveillance is no more interested by the enterprises, everyone is now looking for the automation processes which automate the task of handling various operations in the enterprise. Robotic Process Automation is one such popular technology to look out for.
The popular RPA tools are:
• UIPATH BLUEPRISM
Devops is the combination of Development and operations team in a software organization, which is advanced version to agile development.
It is the way of modularizing the services of a software product into independent modules.
Micro services enable to complete the software product quickly without depending on other services.
10. Block chain
Block chain technology is the decentralized computing environment ,where distributed computing plays an important role here. Crypto currency is the major element that profounces the importance of block chain.
IT industry and Indian digital future; here is what can lead to next phase of growth
Over the years, the Indian information technology (IT) sector has contributed immensely in positioning the country as a preferred investment destination amongst global investors and creating huge job opportunities in India, as well as in the US, Europe and other parts of the world. Clearly, the IT sector has played a pivotal role in weaving the nation’s socio-economic fabric and forging strong bilateral ties with the developed countries. Indian companies, in fact, have cemented their place in this industry and differentiated themselves from the global competition on the back of consistent service and guaranteed results.
While there is speculation that nearly half of the IT services workforce will be rendered ‘irrelevant’ over the next 3-4 years, technology adoption has been on the rise for enterprises globally, in the wake of digital transformation of industries worldwide. It is during such times that the role of IT companies as a partner becomes inevitable, as they can either enable clients in becoming platform-driven or deliver outstanding digital experiences for them with their own platforms.
At the same time, Indian technology companies have set up a large presence in the UK to serve their market and build lasting relationships. India’s increasing focus on innovation and entrepreneurship renders it an attractive destination from a talent standpoint, and equally in terms of market access. This could benefit the IT sector in India, since the UK currently accounts for about 17% of India’s IT exports worldwide.
The sector is in a transitional phase, where in order to sustain its competitive advantage; it needs to constantly upgrade itself in line with global trends. Given the recent developments in the global market for Indian IT services, especially on account of growing protectionism from consumer nations, it is imperative to think differently and collaboratively.
The Indian IT industry has gone through and survived difficult times in the past, such as the dot-com bust of the early 2000s and the 2008 financial crisis. I believe that the sector as a whole understands the need to reinvent itself.
While Indian IT companies have shown strong character and readiness to face present day challenges by upgrading their capabilities and offerings in line with emerging technologies and exploring collaborative opportunities with global manufacturers, challenges of the future must also be foreseen, to prosper in this increasingly competitive global environment and to transform our country into a positive India.
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