India is the preferred destination for companies and their business needs. The factors that attract potential investors are the huge talent pool offered by India, good infrastructure, and low costs. What’s driving the software industry in India is the quality of services being offered. Most of Indian companies are CMM level 5 certified.
The software solutions industry is a major revenue earner. The BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing) industry is surging with more companies looking to offshore their customer service departments. Besides, there are newer areas that are emerging that are making India a potential winner for investors.
The BPO industry is continuously growing. Per the NASSCOM study, the BPO sector is set to reach US$ 30 billion in exports by 2012 and has been growing at a rate of 35% for the past 3 years. The verticals, such as banking, retail, and telecom, offer more possibilities for the future.The KPO industry that is currently estimated at US$ 4 billion is set to grow to US$ 10 billion by 2012. Internet publishing is gaining popularity with more offshore deals being made.
Software giants, such as Infosys, Wipro, and TCS, are providing software solutions to clients overseas. IT parks have been developed in all major Indian cities. Bengaluru in particular is referred to as the silicon valley of India. Many MNCs, such as Capgemini and Yahoo, have forayed into the Indian market and are tapping the huge talent base in India. The software solutions industry is thus expanding continuously.
The web development and design industry is also a prominent area. It is the web site of the company that a potential customer first views and rates. And with the growth of the Internet as a medium for all forms of business, this sector offers immense growth potential.
The animation industry is growing fast in India and is attracting investors. This sector is showing signs of achieving a growth rate of about 30%. Another area is the gaming industry. This industry also shows a lot of promise.
According to a study by CRISIL, engineering services outsourcing (ESO) is likely to be the next big thing in the outsourcing industry. This sector is projected to increase to US$ 7.5 billion by 2012.
Realizing the potential of the IT industry, the government has created Special Economic Zones and is contemplating to create Investment regions to further boost this industry.