The Information Technology Industry in India

The Information Technology Industry is one of the leading sectors in India, sharing 9.3% of the country’s GDP, making it one of the biggest sectors contributing to India’s economic growth. What’s more, the IT industry in India also contributes 56% of the outsourcing market globally.

In this article we are looking at the top 7 reasons the information technology industry is so strong in India.

1.       Strong Education System

India has a strong education system, with a focus on science, technology, engineering, and mathematics (STEM) subjects. This has led to a large pool of highly skilled and educated IT professionals.

2.       Language Skills

A significant proportion of the Indian population is fluent in English, which makes it easy for businesses to communicate with their Indian counterparts. This is particularly important in the IT sector, where effective communication is key.

3.       Government Support

The Indian government has recognized the importance of the IT sector and has implemented various policies to encourage its growth. This includes tax incentives, subsidies, and other benefits for IT companies.

4.       Early Technology Adoption

India has a history of early adoption of technology, which has helped to build a strong IT workforce. Indian IT professionals are well-versed in the latest technologies and can adapt quickly to new developments.

5.       Population

India has a large population, and as a result, a large talent pool to draw from. This has led to many IT professionals in the country, giving businesses access to a wide range of skills and expertise.

6.       IT Service Industry

India has a strong IT services industry, which has helped to attract talent and investment to the country. This has led to the growth of a strong IT workforce.

7.       Cost of Labour

Also, the cost of labour in India is significantly lower in comparison to some developed countries, which makes it an attractive destination for businesses looking to outsource their IT operations.


In conclusion, the information technology workforce in India is strong due to a combination of factors such as education system, English proficiency, government support, early adoption of technology, large talent pool, strong IT services industry, and cost-effective labour.

How to outsource IT work to India

One crucial step in outsourcing IT work to India is ensuring your workers are setup compliantly as employees within your business. This can be done through an Employer of Record (EOR).

Using an Employer of Record (EOR) to outsource IT employees in India can provide several benefits for a company. Such as legal compliance, as an EOR can handle compliance with local labour laws and regulations, reducing the risk of non-compliance for the company.

Another benefit is the potential for reduced costs as an EOR can handle payroll, taxes, and other HR-related expenses, which can lower the overall cost of outsourcing. An EOR can also provide a flexible workforce, allowing a company to scale up or down as needed, without having to go through the process of hiring and terminating employees. Finally, an EOR can help mitigate risk associated with outsourcing by taking on the legal and financial responsibilities of the employees.

All these benefits allow companies to focus on their core business and leave the HR responsibilities to the EOR.

If you would like to find out more about how we can support you thought our EOR services, contact our experts today.


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