SOFTWARE AND IT RELATED PROJECT

Electronics and Information Technology is the fastest growing segment of Indian industry both in terms of production and exports. Today, the electronics industry is completely delicensed with the exception of aerospace and defence electronics, and along with the liberalization in foreign investment and export-import policies of the entire economy, this sector is attracting considerable interest not only as a vast market but also as potential production base by international companies.

In recent times, ‘software development and IT enabled services’ have emerged as a niche opportunity for India in the global context. The Government of India is taking all necessary steps to make India, a Global Information Technology Superpower and a front-runner in the age of Information Revolution. The Government has announced promotion of Information Technology as one of the five top priorities of the country and constituted a National Task Force on Information Technology and Software Development.

Indian IT Industry - An Overview

The Indian IT industry and in particular the software industry is vibrant and successful. It is one of the fastest growing sectors of the Indian economy with more than 2000 companies.

• Sunrise Industry and the Area of Growth for the Millennium.
• One of the fastest growing sectors of Indian industry.
• A growth of 28% in dollar terms in exports during 2003-04 and a provisional growth of 26% during 2004-05.
• Achieved a CAGR of 30% in turnover and 37% in exports during last 5 years.
• Indian Industry grew at over 32% CAGR between 1999 and 2004.
• Key factors behind growth in exports are:
  • US IT investment boom.
  • Onsite staff supplementation growth fuelled by major technology waves.
  • Offshore growth led by anchor MNC customers.
  • New emerging service lines (R&D services, BPO).
• India's Strength.
  • Large growth potential.
  • Burgeoning Consumer base – exposed to the latest.
  • Increasing outsourcing trend.
  • Exports and global outsourcing will drive future growth.
  • Leveraging India advantage.
  • Indian technology production companies have demonstrated capabilities to compete in the global market.
  • Rapidly Improving Infrastructure.
  • Large Talent Pool Availability.
  • High Quality Educational Infrastructure.
  • Low Operating Costs.
  • R&D Strengths.
  • Established Technology Clusters.
  • Government Incentives.
• Significant Strengths in R&D.
  • 175 of the Fortune 500 companies have R&D operations in India.
  • A vast network of state-owned national research laboratories provides world-class support.
  • IT R&D services currently account for more than 15% of total IT exports.
• Production - 2003-04



	Value	Growth	CAGR (5 Years)
IT & Electronics	Rs. 114,650 crore	18.2%	23%
Hardware	Rs. 43,800 crore	16.8%	12%
Software & Services	Rs. 70,850 crore	18.4%	30%



• Exports - 2003-04



	Value	Growth	CAGR (5 years)
IT & Electronics	Rs. 61,500 crore	19%	37%
Hardware	Rs. 6,000 crore (USD 1.4 billion)	7%	28%
Software & Services	Rs. 55,500 crore (USD 12.2 billion)	20.4% (28%)	38%
ITES (part of S/W & services)	Rs. 16,380 crore (USD 3.6 billion)	45% (56%)

PEC is also utilizing its presence in various countries to market Software and I.T related hardware and services. It has been successful in facilitating setting up of IT Education centers in Bangladesh, Guyana and has set up project in Bangladesh for Satellite based Meteorological Data Dissemination System for Weather forecasting.

Satellite Based Meteorological Data Dissemination System supplied to Bangladesh Meteorological Department