According to the National Association of Software and Services Companies (NASSCOM)², from 1997 to 2002, the Indian Information Technology (IT) industry's revenues grew by 120% from $5 bn to $11 bn. During this period, several IT companies in India achieved global recognition as end-to-end IT solutions providers, ranging from basic software development to IT consultancy. Prominent names in the industry included Tata Consultancy Services (TCS), Infosys Technologies, Wipro, Satyam Computer Services and HCL Technologies. The industry also comprised relatively smaller IT companies such as i-flex Technologies and Ramco Systems (Ramco), which specialized in niche IT segments like banking and manufacturing software.

Slowly, the companies graduated into making their own products, both for domestic needs and markets abroad Several companies, primarily in the US, decided to outsource coding assignments to India in their bid to reduce manpower costs.

They were attracted by the English-speaking workforce in India, who could write programs at a much cheaper rate compared to those in their home country.

During the initial years, the work done by the Indian companies was confined to writing proprietary software for foreign companies. However, as their operations expanded, they enhanced their project management capabilities.