IT & ITeS
April 2010

IT & ITeS

April 2010

Contents
 Advantage India  Market overview  Industry Infrastructure  Investments  Policy and regulatory framework  Opportunities  Industry associations
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ADVANTAGE INDIA IT & ITeS April 2010

Advantage India
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Freight costs in India are 20 per cent less, with faster delivery, as compared to China.

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Proximity to the EU and the Middle East and Asian (MEA) market

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Cost advantage

Every year, 675,000 technical graduates qualify in the country, of which 400,000 are engineers. More than 50,000 MBAs graduate every year. It is estimated that India’s IT industry has added 40,000 employees in 2009–10.

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More than 85 global SEI-CMM level 5 firms have a presence in India. India’s service offerings have evolved to high-end integrated IT solutions.

Quality/ maturity of processes

Advantage India

Ease of scalability

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Enabling business policy and regulatory environment

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The cost of an engineer is about 20 to 40 per cent of the comparable cost in the European Union (EU). General, administrative and selling costs amount to around 80 per cent of comparable costs in the EU. India’s average offshore billing rates, at US$ 20 to US$ 35 per hour, are about 50 to 70 per cent lower than the EU’s.

Sector deregulated in the 1990s to allow private sector participation. 100 per cent FDI is allowed under automatic route.
Source: Department of Information Technology, Annual Report 2008–09 ; industry sources, Ernst & Young research

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IT & ITeS

April 2010

Contents
 Advantage India  Market overview  Industry Infrastructure  Investments  Policy and regulatory framework  Opportunities  Industry associations
4

MARKET OVERVIEW IT & ITeS April 2010

Market overview … (1/2)
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Total revenues in India’s IT industry touched US$ 70.5 billion in 2008–09 as