Two decades ago India’s information-technology (IT) firms were the stars of the rising country’s corporate firmament. The industry’s three giants, Tata Consultancy Services (TCS), Infosys and Wipro, became household names at home and familiar to chief executives of big businesses abroad, who had outsourced their companies’ countermeasures against the feared “millennium bug”, expected to wreak havoc on computers as the date changed from 1999 to 2000, to Indian software engineers. By the mid-2000s the Indian IT trio’s revenues were growing by around 40% a year, as Western CEOs realised that Indian programmers could do as good a job as domestic ones or better, at a fraction of the price. Then, following the global financial crisis of 2007-09, revenue growth slowed to single digits. For years afterwards the stars seemed to be losing some of their shine.
Now they are back in the ascendant. Having declined as a share of GDP between 2017 and 2019, exports of Indian software services ticked up again as the world’s companies turned to them for help amid the disruption to operations and IT systems wrought by the pandemic. In the last financial year they reached an all-time high of $150bn, or 5.6% of Indian GDP (see chart 1). NASSCOM, a trade body, expects the industry’s overall revenues to grow from $227bn last year to $350bn by 2026.
— Mir Mustafa Ali (@Im_AliMustafa) March 29, 2022