Complete 10 page APA formatted essay: Consequences for Indian IT Sector Owing to Globalization.
It has been previously mentioned that the year of commencement of globalization in India is determined as 1991 by most scholars. Over the years India became more and more liberated or globalized. This movement from lower lever of globalization to a higher level of the same and its associated positive impact on IT sector gets well illustrated through the statistical data provided by NASSCOM. The estimated total revenue of the sector is USD 73.1 billion in 2010 and IT software and services segment sum up to USD 63.7 billion in that (Nasscom Strategic Review, 2010, p. 6). The IT software and service sector is mainly outward oriented regarding its final product and that orientation would have been impossible unless India would have gradually embraced globalization. The IT sector revenue as a percentage of GDP has increased from 1.2% in 1998 to 6.1% in 2010. Its share in Indian export has risen from 4% in 1998 to 26% in 2010. The gross export revenue has been estimated at USD 50.1 billion in 2010 and it has registered a growth of 5.4% over the previous year. The export figure for an industry reflects its level of globalization. For Indian IT sector 69% of its total revenue comes from export and this figure depicts the globalized nature of this Industry. Globalization has introduced BPO to the industrial world and for India, it’s the fastest growing segment of the IT industry. The BPO segment is expected to grow at a rate of 6% and reach USD12.4 billion in 2010. Such a massive presence of BPO segment portrays the fact that globalization indeed has influenced the IT sector more than anything else. The BPO earning draws more importance considering the fact that most of its revenue if not total comes from abroad and that contributes to the foreign exchange reserve of the country. .