IT will employ more than a crore

“We started with a narrow set of applications, development and maintenance services, and now do pretty much everything,’’ says Infosys Technologies’ co-founder & CEO, S Gopalakrishnan. And ‘everything’ includes aerospace design, re-doing global retail and pharma, maintaining and improving banking systems and systems integration for the manufacturing sector.

TCS signed a $250-million contract with ABN Amro in 2005 and followed it up with Pearl Assurance deal worth $847 million. In a $250-million deal, Infosys acquired captive centres of Philips in 2007. The same year saw 66 PE deals in the technology space. In 2008, HCL bought out UK-based SAP consultant Axon for $658 million.

Growth has been “unstoppable,’’ says Gopalakrishnan, despite the do tcom bust and economic slowdown. The business case was compelling and the sector weathered all anti-offshoring noises as well.

“Over the decade, there has been a greater acceptance of the global model of working at a distance,” says Mittal. However, the only bad patch was the Satyam episode. “That was an aberration,’ says Mittal.

With the industry set for a more than four-fold growth in the next decade, it will have to gear up with new business models. “80% of the opportunity will be in new areas - new markets, new technologies and from smaller companies as well,’’ says Mittal.

If figures tell a story, the technology services’ tale has been spectacular: less than $4 billion in 2000 to $62 billion today; an average of 22% yearly growth; from less than 100,000 to over two million employees; an almost non-existent domestic market has grown to $10 billion-a-year opportunity.

Technology bellwether Infosys was 3,000 people in 2000. At the close of the decade, it has grown manpower 40 times to more than 1,25,000.

Next 10 years will strengthen India’s position as global technology services hub, with Nasscom projecting the industry size at $225 billion by 2020. “IT will employ one crore people,’’ says Nasscom president Som Mittal.

Global tech giants such as IBM , Cisco , Dell, Microsoft , Intel , Oracle, HP and Google have their largest employee base outside the US , in India — tweaking code, developing software products, filing patents and now eying the local market. Homegrown companies such as Infosys, Wipro , TCS and HCL, which never found a mention in global technology and business reports, are now on Rs top quadrant’ of Gartner, Forrester, Everest, BCG and others.

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