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The information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. Growth in the service sector in India has been led by the IT & ITES sector, contributing substantially to increase in GDP, employment, and exports. The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012.According to NASSCOM, the IT & BPO sector in India aggregated revenues of US$100 billion in FY2012, where export and domestic revenue stood at US $69.1 billion and US $31.7 billion respectively, growing by over 9%. The major cities that account for about nearly 90% of this sectors exports are Bangalore, Chennai, Hyderabad, Delhi, Mumbai and Kolkata. Bangalore is considered to be the Silicon Valley of India because it is the leading IT exporter. Exports dominate the IT & ITES industry, and constitute about 77% of the total industry revenue. Though the IT & ITES sector is export driven, the domestic market is also significant with a robust revenue growth.According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.This sector has also led to massive employment generation. The industry continues to be a net employment generator - expected to add 250,000 jobs in FY2013, thus providing direct employment to about 3 million, and indirectly employing 9.1 million people.Generally dominant player in the global outsourcing sector.

The IT & ITES sector seems to have sprung up once again. It is India's one of the largest employment generators in the organised sector. This sector is expected to add a total of 169,000 jobs and expects a growth rate of 7.5 per cent.

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