Information Technology Clusters in India

Abstract

The Indian information technology (IT) industry is deeply entrenched in the key metros of India, giving rise to seven large IT clusters. The country's tier I cities Bangalore, Delhi, Chennai, Hyderabad, Pune, Mumbai, and Kolkata have all emerged as significant IT hubs. The seven IT clusters are different in their history, economic weight, activity base, anchor companies, business models, government role, and other driving forces. However, even as these cities are attracting IT investments and creating employment for thousands of citizens, the drawbacks of overstressed infrastructure, escalating real estate costs, and shortage of skilled IT professionals represent challenges for IT organizations. The paper substantiates the inevitability of the hardware and software sectors linked development at this stage. It is the first attempt to study the IT industry in India through the prism of the countrywise cluster development and combination of IT sectors – hardware design and manufacturing, IT services, software and research and development, and IT-enabled services for business process offshoring.