Today in this world of increasing technology advancement and also the capital and economy, the growth of many different types of industry has been reduced to a large extent. Despite of this declination, the role and the number of IT hub companies is increasing at a very fast rate and predetermination of this increasing trend of IT hub is estimated by many professionals of IT industry. They believe that this trend will be continued at the same rate for the next several years. IT sector in India currently provides employment wages to more than 3 million people and the opportunities is supposed to be increase in the years to come. The reasons for this boom in IT industry are mainly due to the advancement in education, technologies, entrepreneurship and several other reasons.
10. Project Delivery Excellence
Each and every project of a company must be scheduled according to the requirements of the customer and if that project has not been delivered to the customer on time then customer will be greatly affected by this delivery factor. This excellence delivery factor of IT companies like TCS, Wipro, Cognizant and many other IT industries made these IT industries on the peak of IT sector rankings. Project delivery excellence not only involves delivery of project on time but also the quality of the project must be maintained and satisfied as per the requirement made during the deal.
9. Expansion into new markets
This factor includes the services provided by various IT industries across the different parts of world. Indian IT industry provides various services not only in their own country but has also been expanded to other parts like China, Australia, New Zealand and many more. Indian IT Companies like TCS, Wipro has set up and has expanded their real estates and many sub branches to different part of world due to which they are making profits from entire world part and hence people from different parts of world are capable of fulfilling their dreams of working into an IT industry.
8. Offering of new services
Apart from the expansion of IT industry in different zones, IT sector has also been influenced by the various attractive and astonishing services which increases the boom in IT industries. Services like consultancy, outsourcing, infrastructure, integration facility and techniques, customized application development, software solutions, project implementation, testing, planning techniques, software development, software market and maintenance, facility management and many other new services are being offered by the IT companies throughout the entire world. These services increase the revenue flow within the IT industry. Many BPO services has also been included among the various IT companies like Wipro and also many consultancy services provided by TCS increase the revenue of the company which in turn increase the involvement of more manpower for the company. Increase in engineering services among the IT industry increase the involvement of huge number of employees from engineering sector.
7. Customer Mining
Customer mining is important from the customer as well as the organization point of view. Earlier companies main focus was to acquire more and more employees in the industry but with the change in the strategies in IT hub force them to focus not only the numbers but also proper mining for their existing customers. Organization aims to provide all the possible services to their current as well as pre-existing customers so that a proper relationship is maintained between both entities. Customer mining rather than the sale and market professional is the first initiative that must be take place between the two in order to have a futuristic relationship.
6. Increase Scale begets
This is one of the huge factors which greatly influenced the growth of IT company. Many Indian companies have experienced a huge deviation in the growth and it is due to various large and sheer scale operations performed by the company which seems to be beneficial for the company business and stocks. Infosys believes that to get large deals and contracts, their outsourcing operations must also be maintained and must be increased on a large scale in order to have outstanding wages. Increase in scale begets will increase the size of your team and organization which in turn decrease the risk occurrence during the project development. Large team member will increase the risk thinking capability and hence various risk mitigation steps can be taken in order to reduce the risk to a large extent and hence provide risk free solutions.
5. Skilled Manpower
Skilled manpower is also one of the important factors that influenced the boom in IT industry. Earlier India possessed a low level of manpower in numbers. Though some cases also include a huge manpower but many of them were unskilled. But now with the increase in education management, the skilled probability of manpower also increases which in turn increased the growth of IT industry. And due to this reason every year, top most IT companies like TCS recruit around 30,000 to 40,000 skilled people every year which in turn increases the manpower of the organization resulting into huge wages.
4. Reduced telecommunication cost
IT sector is a centralized sector of all industries. Today IT sector has moved to such a position so as to communicate between various networks has been made easy as well as cheaper. Internet is one such example which reduces the cost of communication among several entities. IT telecommunication not only provides the communication node but also various quality standards, information security management and IT service management facility. The project to be delivered to the customer must be of good quality which helps to maintain better relationship among customer and various organizations for future deals.
3. Reduced import duties
Generally a product purchased by a customer is bounded by a large variety of import and export duties which decreases the sales of that product. But after reduction of these import duties planned by the IT sector greatly reduce the cost of the product and due to which a bulk of software and hardware product developed by different companies are being delivered to the customer without any import duties or reduce import duties. This increase in sale of software and hardware products increases in the wages and hence the growth of IT sector.
2. Encouraging Government policies
There are vast array and types of government policies which makes a great impact on the growth of IT sector. These policies includes foreign investment policy, training policy, monetary policy, education policy, transport and labor policy, market policy, environmental policy, small scale and large scale government policy and many other important beneficial policy of government. Now to be able to run the IT business wages effectively, the company has to encourage all these government policies. For instance, training policy is used to increase the workforce skills; education policy will increase the skilled number of employees and so on.
1. Cost Advantage
The cost advantage generally refers to the cost required to set up an IT sector in an organization. This cost includes all the cost acquired due to export duties, the manpower, the labor cost, the employee wages, and other wages including management and planning. The expenses required to run a business in India is less as compared to other developing countries like USA. Due to low cost, the boom of IT industry is rapidly increasing because only a small amount of expense is required to set up an IT sector in India and other developing countries.