Policy changes, demand dynamics and implications on the entry patterns in Indian IT Industry

A myriad of factors including policy shocks, domestic and international demand, education institutions etc., led to the evolution of the IT industry in India. Demand for various IT services, coupled with policy decisions at the state and the central level defined the nature of industry as we see today. The pioneer IT firms were located in regions where the government policies were conducive for business such as Bangalore.

Availability of capital and proximity to academic institutions such as IISC and TIFR also contributed to the location choice for the early entrants. Most of the ICT startups in the last two decades agglomerated in locations to form IT clusters in India.From product development and outsourcing, the focused shifted to e-commerce or Internet startups, where Internet was at the core of the business model. We are keen to study what factors influenced the transformation of the IT industry in India and how policy shocks changed the course of the industry.