Between April 2000 and February 2011, the computer software and hardware sector received cumulative foreign direct investment (FDI) of US$ 10,705 million, according to the Department of Industrial Policy and Promotion.
The total investments of EMC Corporation, a leading global player of information infrastructure solutions in India, will touch US$ 2 billion (over US$ 2.01 billion) by 2014.
Russian IT security software provider, Kaspersky Lab, will be investing US$ 2 million in its India operations at Hyderabad during 2011.
On the back of 40 per cent revenue growth, Cognizant will invest more than US$ 500 million till 2014 to expand its campuses to add over 8 million square feet to house over 55,000 employees. It will create additional software development and training facilities in regions designated as special economic zones in Chennai, Pune, Coimbatore and Kolkata.
In order to integrate the learning experience for the students, Globsyn Business School, would launch an online platform, e-Globsyn, by July 2011 that would work as a virtual classroom environment for its students, as well as facilitate them with other amenities.
Chennai-based Polaris Software Lab has announced that it is buying an 85 per cent stake in San Francisco-based digital identity authentication services provider Iden-Trust for US$ 20 million. The acquisition will mark Polaris' entry into the cloud computing space for financial technology solutions, the company said in a filing to the Bombay Stock Exchange.
Government sector is a key catalyst for increased IT adoption- through sectors reforms that encourage IT acceptance, National eGovernanceProgrammes (NeGP) , and the Unique Identification Development Authority of India (UIDAI) programme that creates large scale IT infrastructure and promotes corporate participation.
Certain crucial steps taken by the Indian government to propel the sector growth are:
- Constitution of the Technical Advisory Group for Unique Projects (TAGUP) under the chairmanship of NandanNilekani. The Group would develop IT infrastructure in five key areas, which includes the New Pension System (NPS) and the Goods and Services Tax (GST)
- Setting up the National Taskforce on Information Technology and Software Development with the objective of framing a long term National IT Policy for the country.
- Enactment of the Information Technology Act, which provides a legal framework to facilitate electronic commerce and electronic transactions.
- Setting up of Software Technology Parks of India (STPIs) in 1991 for the promotion of software exports from the country.There are currently 51 STPI centres where apart from exemption from customs duty available for capital goods, there are also exemptions from service tax, excise duty, and rebate for payment of Central Sales Tax.
- Plans to formulate Information Technology Investment Regions (ITIRs). These regions would be endowed with excellent infrastructure and would reap the benefits of co-siting, networking and greater efficiency through use of common infrastructure and support services.
The Indian information technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise.
According to a report prepared by McKinsey for NASSCOM called 'Perspective 2020: Transform Business, Transform India', the exports component of the Indian industry is expected to reach US$ 175 billion in revenue by 2020. The domestic component will contribute US$ 50 billion in revenue by 2020. Together, the export and domestic markets are likely to bring in US$ 225 billion in revenue, as new opportunities emerge in areas such as public sector and healthcare and as geographies including Brazil, Russia, China and Japan opt for greater outsourcing.