The
software development industry in India has seen a healthy growth in employment
and projects completed for domestic and export markets. Over the past few years
from base of 6800 workers in 1986, the number increased to about 522,000
software services professionals by 2001. Software development industry is set
to overtake that of USA by 2017. How did this remarkable increase in developers
happen? A recent research by Evans Data projects says that U.S. leads the world
in software developers, with about 3.6 million. India has about 2.75 million.
But by 2018, India will have 5.2 million developers, a nearly 90% increase,
versus 4.5 million in the U.S., a 25% increase though that period. This is
mainly attributed to population increase and intake of developers in lakh every
year by Indian software industry. The software development and IT services
production has seen the following trends;

1) Indian software
exports are huge – roughly US$75bn in 2014/15 (US$100bn if BPO services are
included).

2) But the overall
pattern of growth is slowing. The ten-year annual growth average was 40% in
2002; 30% in 2008; 20% in 2014.

3) IT
software/services’ share of total exports remains roughly static. This was just
under 14% in 2003/04 and just under 15% in 2013/14.

4) Market
diversification for Indian software remains limited.&nbsp; In the early 1990s, export
destinations were: US (60-65%), UK (10%), other Europe (10%), Aus/NZ (5-10%),
Asia (0-3%).&nbsp; Twenty years later in 2013-14, export destinations were:
North America (63%), UK (13%), other Europe (11%), Aus/NZ (4%), Asia (6%).

5) Although the Indian
domestic IT market is large and growing, production for exports is growing
faster than production for the domestic market.&nbsp; As a result, the share of
exports in total IT output has risen from 19% in 1991/92 to 49% in 2000/01 to
67% in 2007/08 to 81% in 2014/15.

6) Domestic computer
hardware production in 2013/14 was roughly US$3bn.&nbsp; But domestic IT
consumption was US$12.4bn.&nbsp; In part, this may be because the two figures
are counting different things (e.g. consumption figure includes peripherals,
network kit, storage, etc).&nbsp; But it likely also points to a high – and
said to be growing – share of imports in Indian domestic IT consumption.

7) Percentage growth of
IT exports had been 14% while the overall export led business was about more
than 70$ US bn. In this the development of the exports from 1980 shows marked
decrease of growth, while in contrast to the overall export business. Growth
has plummeted by 40% since 1985 while overall volume of trade has increased
by 36%.

&nbsp;

 Conclusion

&nbsp;

The growth of Indian
Software industry since 1994 to 2014 has been unprecedented with average annual
growth rate as 25.55 %. Thereupon the share of Indian software exports to total
output within the same period has increased by 98% and is 20% approx of total
output. Thus software development and IT enabled services industry has shown
remarkable year on year growth with increase in overall exports and domestic
production. This is a happening sector for India and is maintained as the one
which would spearhead economy to further its goals of development and progress.

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Software development in India

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