The current scenario in the IT industry of India and the tremendous growth registered in recent years has generated much optimism about the future of the Indian Information technology industry. Analysts are upbeat about the huge potential of growth in the Information Technology industry in India.

Exports - The IT industry accounts for a major share in the exports from India. This is expected to grow further in coming years. The information technology industry is one of the major sources of foreign currency or India
FDI (Foreign Direct Investment) - High inflow of FDI in the IT sector is expected to continue in coming years. The inflow of huge volumes of FDI in the IT industry of India has not only boosted the industry but the entire Indian economy in recent years.
IT sector is contributing about 8 per cent of the GDP. We crossed $ 100 billion mark. We are looking to cross 300 billion of IT and ITeS exports by 2020. Enterprise software market in India projected to grow 13% in 2012. According to Gartner, Inc. India’s enterprise software market is forecast to maintain its strong performance, with an estimated compound annual growth rate (CAGR) of 13.6 per cent from 2009 to 2016 – the third highest growth rate in the world. In 2012, India will be the fourth largest enterprise software market in Asia/Pacific. The country is forecast to account for 11 per cent of the region’s total revenue of $29.33 billion USD for Asia/Pacific this year, the equivalent to 1.15 per cent of the total worldwide software of market share of $280 billion USD billion. By 2016, India’s share of the software market in Asia/Pacific is expected to reach 12.1 per cent, representing $5.4 billion in revenue, or 1.5 per cent of total worldwide software market revenue of $361 billion.
Domestic market: Another important area of future growth for the IT-Software industry of India is the domestic market. While exports dominate the IT industry at present, there is huge scope of growth in the domestic market which can be tapped in the future.
The increasing globalization of the Indian economy is leading to a growing need for modern software with the latest features and improved functionality

There are several new trends visible in Indian IT-Software industry 1) Cloud Computing
Cloud computing is the delivery of computing and storage capacity as a service to a heterogeneous community of end-recipients. The name comes from the use of a cloud-shaped symbol as an abstraction for the complex infrastructure it contains in system diagrams. Cloud computing entrusts services with a user's data, software and computation over a network

2) Virtualization
In computing, virtualization (or virtualization) is the creation of a virtual (rather than actual) version of something, such as a hardware platform, operating (OS), storage device, or network resources virtualization can be viewed as part of an overall trend in enterprise IT that includes autonomic computing, a scenario in which the IT environment will be able to manage itself based on perceived activity, and utility computing, in which computer processing power is seen as a utility that clients can pay for only as needed. The usual goal of virtualization is to while improving scalability and overall hardware-resource utilization

3) SaaS
Software as a service (SaaS, pronounced sɑs), sometimes referred to as "on-demand software"[citation needed], is a software delivery model in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via a web browser. SaaS has become a common delivery model for many business applications, including accounting, collaboration, customer relationship management (CRM), management information systems(MIS), enterprise resource planning (ERP), invoicing, human resource management (HRM), content management (CM) and service desk management. SaaS has been incorporated into the strategy of all leading enterprise software companies. One of the biggest selling points for these companies is the potential to reduce IT support costs by outsourcing hardware and software maintenance and support to the SaaS provider.
According to a Gartner Group estimate, SaaS sales in 2010 reached $10 billion, and were projected to increase to $12.1bn in 2011, up 20.7% from 2010. Gartner Group estimates that SaaS revenue will be more than double its 2010 numbers by 2015 and reach a projected $21.3bn. Customer relationship management (CRM) continues to be the largest market for SaaS. SaaS revenue within the CRM market was forecast to reach $3.8bn in 2011, up from $3.2bn in 2010

4) SOA
In software engineering, a Service-Oriented Architecture (SOA) is a set of principles and methodologies for designing and developing software in the form of interoperable services. These services are well-defined business functionalities that are built as software components (discrete pieces of code and/or data structures) that can be reused for different purposes. SOA design principles are used during the phases of systems development and integration.
SOA generally provides a way for consumers of services, such as web-based applications, to be aware of available SOA-based services. For example, several disparate departments within a company may develop and deploy SOA services in different implementation languages; their respective clients will benefit from a well-defined interface to access them. XML is often used for interfacing with SOA services, though this is not required. JSON is also becoming increasingly common.
SOA defines how to integrate widely disparate applications for a Web-based environment and uses multiple implementation platforms. Rather than defining an API, SOA defines the interface in terms of protocols and functionality. An endpoint is the entry point for such a SOA implementation

5) OSS use/development
Open source software development is the process by which open source software (or similar software whose source code is publicly available) is developed. These are software products “available with its source code and under an open source license to study, change, and improve its design”. Examples of popular open source software products are Mozilla Firefox, Google Chromium, Android and the OpenOffice.org Suite. In the past, the open source software development method has been very unstructured, because no clear development tools, phases, etc., had been defined like with development methods such as Dynamic Systems Development Method. Instead, every project had its own phases. However, more recently there has been much better progress, coordination, and communication within the open source community

6) Mobile development
Mobile application development is the process by which application software is developed for low-power handheld devices, such as personal digital assistants, enterprise digital assistants or mobile phones. These applications are pre-installed on phones during manufacture, can be downloaded by customers from various mobile software distribution platforms, or web applications delivered over HTTP which use server-side or client-side processing (e.g. JavaScript) to provide an "application-like" experience within a Web browser.

7) Agile development
Agile software development is a group of software development methods based on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. It promotes adaptive planning, evolutionary development and delivery, a time-boxed iterative approach, and encourages rapid and flexible response to change. It is a conceptual framework that promotes foreseen interactions throughout the development cycle. The Agile Manifesto introduced the term in 2001.

Web based technologies * In IT, the technology and the usage evolves faster even more than 10 times than any other industry. This means new business opportunities and old technology becoming obsolete. * The internet has grown from 10 million users to one billion users and up to three billion if we count Internet-enabled mobile phones too. The total connected devices today are about 5 Bn. likely to grow within few years to 1 Trillion. The active websites have grown from 1 Mn. to more than 100 Mn

Indian Software Industry in 2012

* India's software and services exports are seen rising 16-18 percent from 2010 to 2012 * India's share in the global outsourcing market rose to 55 percent in 2010 from 51 in 2009 and continues to increase. * Nascom forecast export revenue of $68 billion to $70 billion for outsourcing sector in fiscal 2012. * The Indian software industry is remarkable in a number of respects. It is service rather than product oriented, heavily export oriented, and is largely managed by professional and entrepreneurial managements. * India has 16% of the global market in customized software, and that more than 100 of the Fortune 500 had outsourced to India.

In addition to standard programming skills, there is an increasing need for proficiency in the use of dynamic languages and programming skills associated with web development

Few reasons for IT –industries groth
1) The number one reason has to be the large well educated population in India.
2) The highest number of English speaking people. (one of the rare positives of Indian invasion by British)
3) Low wages in India as compared to West. Although this factor is slowly becoming a disadvantage, it was one of the main reasons for International Software companies to outsource IT work to India.
4) The Indian culture itself is a huge contributor. For e.g: Parent’s commitment to children’s education. The importance of education is ingrained by them on their children at a very young age. They see good education as the only means to have better standard of living.
5) As much as Indian IT Industry has grown due to offshoring, equal amount of credit should go to growth of domestic companies in Auto, retail, banking, telecommunication, manufacturing etc. They have equally contributed in its growth .
6) The young and dynamic working population. More than 60% of Indian people are below age 25 !
7) The opening up of economy starting in early nineties. A lot of credit goes to then Finance Minister and current Prime Minister – Manmohan Singh. The outsourcing / offshoring started taking roots due to the change in policies back then.
8 ) Partial privatization and growth in Telecommunication, in late nineties. Telecommunication forms an integral part of Information technology Industry.
9) The rapid growth in IT parks in India in last 10 years. Government setup SEZs (specialized economic zones), where opening of software services companies would get certain tax subsidies. This attracted lot of companies to setup software shops.
10) The tax breaks and sops offered by Indian government for upcoming software firms. This made India one of the most attractive markets for setting up Software shop.
11) The commitment of Indians towards their work. It is a common knowledge that people in Software Industry normally put more than 10 hours a day in their work. I do not subscribe to the view that working long hours necessarily leads to higher productivity, but I think this “hard working Indians” definitely plays on people’s mind.
12) Rapid growth in Infrastructure and transportation facilities that started in mid nineties. Yes, we still have to go a long way yet, but we are moving in right direction.
13) The entrepreneurial spirit and Innovative tilt of Indians. This may be controversial, however I think it is a factor that has made Infosys and Wipro such huge success stories

Ref

http://www.pluggd.in/enterprise-software-market-in-india-growth-297/ http://en.wikipedia.org/wiki/Cloud_computing Just see this site its for BPO-IT
http://www.nasscom.org/indian-itbpo-industry