Government research labs (computer science and IT) like C-DAC, DRDO, ISRO are doing very good work and their work is recognized worldwide. Educational institutes like the IIT's, IISc and IIIT's are also doing very good R&D. IIT's, IISc and IIIT's are among the very few engineering schools in India which are engaged in research apart from teaching. Majority of the engineering schools in India are focussed only on teaching and have no research output.
These are all government establishments (excluding IIIT's) but what about the private companies especially the big ones like Infosys, TCS, Wipro, Satyam, HCL. Based on what I know, these companies mostly provide services and have a very small percentage of work on product development. How about applied R&D, market driven research and product based research in these comapnies.
I could find plenty of information on research work in government organizations like C-DAC, engineering schools like IIT's, MNC's like IBM, HP, GE etc but not enough information on private software companies.
Thanks for everyone's feedback.