India’s IT sector emerges as a key player in its economy, providing a wide range of services and activities. It is widely known as the Information Technology and Business Process Management (IT-BPM) industry. This industry comprises IT services, software products, engineering research and development, business process outsourcing and e-commerce.
In the 21st century, many IT startups have emerged, especially in e-commerce, data analytics, fintech and artificial intelligence, attracting significant investments and disrupting traditional industries. The government has implemented various initiatives such as Digital India, Make in India and Startup India to foster entrepreneurship and technological innovation.
The IT sector is one of the most crucial sectors of the Indian industry as well as one the largest drivers of export revenue for the country. The industry currently contributes to about 7.7% of GDP and is expected to contribute to about 10% by 2025. India is currently the largest IT services provider in the world. The country has an edge primarily due to the availability of highly skilled and less costly manpower available. India is the leading sourcing destination in the world, serving about 55% of the global service sourcing market of an estimated size of USD 185-190 billion and a 38% market share of the BPM sourcing market.
The pandemic has highlighted the importance of having a proper IT infrastructure to ensure efficient continuation of businesses and accelerated the push towards digitalisation across the globe for all companies ranging from small local companies to large conglomerates, who are now focusing more towards developing and upgrading their infrastructure for both consumer facing and operations related services
IT Stocks refer to shares of companies involved in the Information Technology (IT) sector. These companies provide a variety of products and services related to computing, software, hardware, and digital infrastructure. The IT sector is one of the most dynamic and fast-growing sectors in the global economy, driven by technological innovation and the increasing reliance on digital solutions in all aspects of life and business.
What are IT Stocks in India?
Shares or ownership in companies engaged in information technology (IT) business are represented by IT stocks in India. These businesses provide technology-related services and solutions. In other words, they use computers, software, and other technologies to help businesses and organizations with many aspects of their work.
The world was going digital at a fast pace. Then it got hit by a pandemic that brought almost everything to be on digital platforms at once, from classrooms, workplaces, entertainment to modern-day relationships. For these services to stay uninterrupted, IT sector companies are working continuously.
- Software development and services
- IT consulting
- Business process outsourcing (BPO)
- Cloud computing
- Cybersecurity solutions
List of IT Stocks:
| 1 | Zensar Technology LTD |
| 2 | Newgen Software Technology |
| 3 | TCS |
| 4 | HCL Technologies |
| 5 | Tech Mahindra |
| 6 | Tanla Platforms |
| 7 | Sasken Technology |
1. Zensar Technologies Ltd:
Zensar Technologies is a leading digital solutions and technology services company with over 50 years of experience. It specializes in partnering with global organisations across industries to help them on their Digital Transformation journeys. The company manufactures and markets computer hardware and software, ranging from PCs to mainframe computers. It has diverged its business into various divisions, such as software solutions, supply chain management and SAP solutions, setting up branches in Finland and China and making other acquisitions and collaborations. In 2018, 3 new wholly owned subsidiaries were incorporated in India, and the next year, one of Europe’s leading experience design agencies was acquired in the UK. In 2019, the business of two subsidiaries pertained to textiles, healthcare and pharmacy were acquired in India.
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Zensar Technologies, formerly known as ICIL was acquired by the RPG group in 1989. It is a globally focused software and services company spread across eighteen countries across the world. Zensar provides end-to-end services from IT development to Business Process Outsourcing, from consulting to implementation
Zensar, with its experience in delivering excellence and superior client satisfaction through myriad technology solutions, is uniquely positioned to help its clients surpass challenges they face running their existing business most efficiently, helping in their legacy transformation, and planning for business expansion and growth through innovative and digital ways.
2. Newgen Software Technologies:
Newgen Software Technologies Limited is a software products company providing Business Process Management, Enterprise Content Management, and Customer Communication Management platforms. With over 270 direct sales employees and 300 channel partners, the company works with some of the world’s leading organizations, across sectors such as banking, government, BPOs, IT’s, insurance, and healthcare.
The company has developed platforms that enable customers to rapidly design, build, and implement enterprise-grade custom applications with minimal coding and also offers its products suites on-premise as well as on cloud in the form of subscription. In 2018, the company raised approx. Rs 424.63 cr. in an initial public offering with a subscription 8.17 times the Issue Price, and listed on both BSE and NSE at 3.27% above the Issue Price
The same year, the company released Mobile Medicare Enrolment for the US Health Plans, and received a work order for Document Management System and digitization of Court records in Maharashtra for a total size of Rs 63.93 crores. Recently, the company also received orders from American National Bank of Texas and Credit Union of Colorado for its Account Opening and Loan Origination solutions, and an agreement with Hewlett Packard Enterprise India for the supply of software licenses and related services.
3. Tata Consultancy Services (TCS):
Headquartered in Mumbai, Tata Consultancy Services Limited (TCS) is one of India’s renowned IT service providers. The company offers a wide range of services, including artificial intelligence, data and analytics, cognitive business operations, consulting services, enterprise solutions, cloud services, IoT digital engineering, sustainability services and more.
TCS provides a wide range of services, including IT consulting, application development, business process services, cloud computing, analytics, engineering and industrial services, and digital transformation. TCS also offers products such as TCS BaNCS, a banking software suite; and TCS iON, a cloud-based platform for educational institutions. TCS is well-known for its innovative products and services, and its popular brands include TCS iON, TCS BaNCS, TCS MasterCraft, and TCS Digital.
4. HCL Technologies:
HCL Technologies Ltd. is a global IT services and solutions provider, incorporated in 1991 and headquartered in Noida, India. HCL Technologies operates in the areas of enterprise and applications consulting, systems integration, remote infrastructure management, engineering and R&D services, and business process outsourcing.
The company offers a wide range of IT services, including digital consulting, hybrid cloud, supply chain management, data and analytics, cognitive automation, product engineering, cybersecurity services, SaaS, R&D services, HCL software services and other allied services.
HCL Technologies is well known for its popular brands, HCL Axon, HCL Leap, HCL Talent Care, and HCL iON. HCL Axon provides consulting and outsourcing services, HCL Leap offers a range of cloud-based solutions, HCL Talent Care provides talent management and recruitment services, and HCL iON provides integrated digital solutions.
5. Tech Mahindra Ltd
Tech Mahindra Limited is engaged in the business of computer programming, consultancy and related services. It’s segments include Information Technology (IT) Services and Business Processing Outsourcing (BPO).
Tech Mahindra Ltd is an Indian multinational technology company that was incorporated in 1986. It is a part of the Mahindra Group and provides digital transformation, consulting, and business re-engineering services. It is headquartered in Pune, India and has its presence in over 90 countries.
Tech Mahindra is one of the best technology shares in India that navigates the IT market with its emphasis on next-gen technologies like 5G and AI, potentially fostering innovation and competitive advantage.
6. Tanla Platforms Ltd
Tanla Solutions (TANLA), founded in 1999, is engaged in providing integrated telecom infrastructure solutions and products. The company offers telecom products like SMSC, optimal routing solution, SS7 voice mail server, welcome roamer, high density media servers, multiple MSISDN, CRBT, missed call alert, SMS direct broadcast, and prepaid roaming gateway; automatic vehicle location, which provides instantaneous location information of a vehicle; and the Power AMR 101, an automated power reading device which provides instantaneous data of customer usage.
The company provides offshore services including project management, application development and integration, technical support and technical consulting. The software development center is located in Hyderabad, Andhra Pradesh. The company has acquired a software development company in New Delhi.
Tanla Platforms Ltd (formerly Tanla Solutions Ltd) is a cloud communications provider enabling businesses to communicate with their customers and intended recipients. It is headquartered in Hyderabad, India. It is a global A2P(application to person) messaging platform provider. [1] [2]Customers[1] Airtel, SFR, google, Facebook, Linkedin, HDFC Bank, Kotak Bank, Axis Bank, CMAS, Dept of Telecommunications, Truecaller, etc. ~50% of Tanla’s top 50 customers have been with them for more than 7 years.
7. Sasken Technologies Ltd
Established in 1989, Sasken employs around 1400 people, operating from state-of-the-art centers in Bengaluru, Pune, Chennai, and Kolkata (India), Kaustinen and Tampere (Finland), and München (Germany). The company also has a presence across Japan and UK. Sasken has been listed in the National Stock Exchange and Bombay Stock Exchange Ltd. in Mumbai, India since its initial public offering in 2005.
Sasken is a pioneer in Product Engineering and Digital Transformation delivering concept-to-market and chip-to-cognition R&D solutions to customers across the semiconductor, automotive, industrial, consumer electronics, enterprise devices, satellite communications, telecom, and transportation domains. Through the last three decades, Sasken’s deep engineering capabilities and technology patents have helped transform over a hundred Fortune 500 clients and powered more than a billion digital devices from its state-of-the-art facilities in India, Finland, Germany, and Japan.
Sasken is compliant with ISO 26262 Road Vehicles-Functional Safety standard for the Management of Functional Safety, Software Product Development, and Supporting Processes, and our Quality management systems are compliant with the Automotive SPICE standard.
Benefits of Investing in Top IT Stocks in India
Indian IT companies are offering investors a chance if they are to engage in digital transformation in the ongoing process. As technology continues to define the future of businesses globally, India’s IT stocks represent a dynamic and promising avenue for investors seeking long-term growth and reflect the ever-evolving global technology landscape.
The Indian IT sector companies are experiencing rapid growth, driven by global outsourcing, digitisation, and cloud computing. This may translate to potentially good returns for investors.
Top IT companies typically boast robust financial performance, consistent revenue and profit growth, healthy margins, and strong balance sheets.
Technology shares are generally highly liquid, meaning they can be easily bought and sold on the stock exchange. This allows investors to easily enter and exit their positions and access their capital.
Factors to Consider Before Investing in Information Technology Stocks in India.
Before buying a stock in the IT sector in India, you must consider the following factors to make an informed investment decision:
You must look out for IT companies that are coming up with new and game-changing technologies. Companies that create and sell innovative products tend to do better in the market.
Keep an eye out for new ideas, patents and cutting-edge technology, as these can boost the value of IT stocks.
Before investing in any IT stock, it is important to analyse the company’s fundamentals. This includes factors such as the company’s financial performance, competitive position, and management team.
The IT sector share list may not be without its risks. These risks include the industry’s cyclical nature, increasing competition, and security breaches.
How to Invest in Information Technology Shares in India?
When considering whether to invest in IT stocks in India, it is important to learn about the various companies operating in this sector, from software development to IT services.
Before investing in the best IT stocks in India, investors need to research the top IT companies in India and their financial performance. They should also look at the trends in the IT sector and the overall market conditions.
Investors can start investing in IT shares in India after completing the above steps. They can choose to invest in individual IT companies or invest in various IT sector shares through mutual funds or exchange-traded funds (ETFs). Funds and ETFs can sometimes own equities and various asset classes, including IT stocks. Other times the Fund or ETF may invest only in IT companies.
Investors need to open demat account to hold their IT shares electronically. Therefore, it is an inevitable requirement to invest in the Indian stock market.