India's IT/ ITES industry is one of the best in the world. This is because we have a large base of young and educated individuals, and probably work on one of the lowest wages in the world. The entrepreneurial spirit of Indians has made it possible for the country to have hundreds of software development companies. Some other reasons for the success of Indian IT industry are:

The tax breaks and sops offered by Indian government for upcoming software development companies. This made India one of the most attractive market for setting up Software shop.Government setup SEZs (specialized economic zones), where opening of software companies would get certain tax subsidies.
Partial privatization and growth in Telecommunication, in late nineties is also a major contributor to the growth of India's IT sector.Telecommunication forms an integral part of Information Technology Industry.

The bigger companies, like MNCs listed on the stockexchange, work on complex products like the ERP software. However, the smaller or local companies emphasize on services like website development. Web development companies can be found functioning from the owner's home itself! This is because this business does not require much nnvestments. Any software engineer with a PC and an internet connection can operate as a freelancer or start his own firm!

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