Download or read book INNOVATIONS AND INNOVATIVE PRACTICES IN START-UP IT COMPANIES IN PUNE written by Dr. Varsha Deshpande and published by Ashok Yakkaldevi. This book was released on 2021-11-30 with total page 219 pages. Available in PDF, EPUB and Kindle. Book excerpt: 1.1 Overview of research study: The information technology industry has become one of the most significant growth catalysts for the Indian Economy. In addition to fuelling India’s economy this industry is also positively influencing the lives of its people through direct and indirect contribution to the various socio-economic parameters such as employment, standard of living, education and diversity among others .Growing at an extremely high pace ,the industry has demonstrated a decade of strong growth-growing 15 times to aggregate revenues of USD 69.4 billion in FY 2009.In addition it is one of the largest employers in the organized sector. It provides direct livelihood to 2.2 million. As far as India is concerned the IT industry had humble beginnings with a few Indian entrepreneurs setting up IT services companies and select MNCs such as GE, Texas Instruments and American Express setting up their captive centres in India. Cost arbitrage through abundant talent pool available in India was the key driver for off shoring to India. The perceived success of the first few captives led other MNCs to consider entering India to set up their back office and product development centres. India based third party players started offering similar services to capitalize on the opportunity. The Y2K phenomenon and the dot-com bust gave a strong push to outsourcing of technology services to India, especially after Indian companies were able to prove their capability in delivering the desired quality and functionality at a significantly lower cost. Over a period of time this industry has attracted the attention of PE investors leading to a large number of Indian entrepreneurs setting up IT –BPO centers. While cost considerations used to be the primary driver earlier, other factors like performance, quality, productivity have emerged as key reasons for outsourcing work to India.