The software industry is one of the key subsectors of the IT industry in India. The IT-BPM industry has played a significant role in India’s socio-economic development. India had a rather unassuming beginning in the field, lacking proper infrastructures for software development. However, due to the strong governmental support, a large well-educated population with proficient English skills, lower wages in comparison to the West, and the open market, this sector saw an exponential growth after the economic liberalization of 1990s.
History of the software industry in India
India is one of the largest offshoring destinations for many IT companies, providing IT-enabled business processes, application services, and infrastructure solutions for business outcomes. At the beginning of the 1990s, the software sector in India was focused on providing software services and software development-related services to foreign clients, owing to the creation of global internet infrastructure. After the year 2000, an increasing number of multinational companies saw India’s potential in software services by setting up their IT, BPM, and R&D facilities there. Most recently, the Indian software ecosystem has evolved into a highly dynamic and varied sector providing end-to-end products along with building and managing complex IT systems for global enterprises.
With strong support from the government as well as improvements in digital and educational infrastructure, India’s software sector is in a unique position to lead technological innovations alongside the IT industry. In financial year 2023, the computer hardware and software sector saw the biggest inflow of foreign direct investments among all sectors. Over the past three decades, India has risen as an IT and software pioneer bolstered by the entire ecosystem. Some of the components of this system include the government, local and international enterprises, and start-ups. With a strong and stable footing, the country is on its way to further establish itself as a leading force in the software sector.
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