The Indian IT-enabled and Business Services (ITES-BPO) have demonstrated superiority, sustained cost advantage and fundamentally-powered value proposition in ITES. Indian companies are expanding their service offerings, enabling customers to deepen their offshore engagements; the shift from low-end business processes to higher-value, knowledge-based processes are having a positive impact on the overall industry growth. Global software product giants such as Microsoft, Oracle, SAP, etc., have established their captive development centres in India.

The Indian software and services export is estimated at Rs 103200 crore (US$ 23.4 billion) in 2005-06, as compared to Rs 80180 crore (US$ 17.7 billion) in 2004-05, an increase of 32 per cent in dollar terms. This segment will continue to show robust growth in future also. The production of the Indian electronics and IT industry is estimated at Rs 185660 crore during 2005-06, as compared to Rs 152420 crore during the year 2004-05, a growth of 21.8 per cent. The Industry’s contribution to the national GDP has risen from 1.2 per cent during the year 1999-2000 to a 4.8 per cent during 2005-06.

India’s record on Information security ranks better than most locations. Specific initiatives underway include enhancing the legal framework through proposed amendments to the IT Act 2000—currently under review by the Government.

The ITES-BPO sector has become the biggest employment generator amongst young college graduates. The number of professionals employed in India by IT and ITES sectors is estimated at 1287000 as of March 2006. In addition, Indian IT-ITES is estimated to have helped create an additional 3 million job opportunities through indirect and induced employment. The increased attractiveness of India as an investment destination in IT has led to the reversal of the brain drain— people of Indian origin who went to pursue careers abroad are now attracted to work in India.