Information Technology in India provides a significant amount of employment in the service sector. The most prominent areas are the IT capital Bangalore (the Silicon Valley of India) and Chennai. India’s education system produced more technically proficient people than the industry in India could employ during the 1950’s.This meant that many Indian IT specialists immigrated, particularly to the U.S. By the 1960’s as many as 10,000 Indians were estimated to have settled in the U.S. The U.S. technological lead was driven by the brain power of these brilliant immigrants.
During the early 1990’s VSAT links were becoming more and more available. In 1993 the government in India allowed individual companies to have their own VSAT links. This allowed work to be done in India and to be transmitted abroad directly. These links are very reliable so it’s as if you have a team working for you in your own office.
Through the 1990’s there was another wave of Indian immigrants to the U.S. By 2000 it was estimated that there was 1.7million Indian Americans. This immigration was mostly highly educated technologically proficient people. India’s reputation for a technologically skilled workforce has been well deserved.
The IT services sector contributes 40% of India’s GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce.
Outsourcing has become a major business in India. For companies based in North America or Europe in particular, outsourcing to India is an opening to a skilled team of technologically proficient people.
The European Union and India have joined together in the field of science and technology with a joint venture to open a Software Education and India Software Development in Bangalore.