Saturday, 24 September 2011

My made article on indian software industry

Indian software industry:

My this article is only depend on all materials which I had referred and studied for my research work and I feel pleasure to write on this topic.
     India is a country with population of 1.2 billion and the country which predicted as superpower before 2050.
Indian software industry has remarkable success story. It have grown more than 30% annually for 20 years, with export of close to 60 $bill. In 2008. India exports software services to more than 60 countries, with two third to the United state (US). US account for 62% of Indian software export followed by Europe 23.5% and Japan with3.5%. Software export accounted 15-20% of all export from India in last few years which was less than 2% in 1995. The share of IT in overall GDP in 2004-05 was 4.1 % and in around 8 % in 2009-10.
A Industry which have CAGR of 28-30% which has consistently maintained for more than decade.
Even two decade ago the image of India in the world was one of the country beset with poverty. Unrestrained population growth, and substantial competitiveness. Today due to largely to the dramatic growth in Indian software industry India has an emerging economy with techno-savvy manpower building an impressive IT industry.
India has shown world as how to emerge as nation of excellent software developers, and managers by adopting emerging technologies and trends and this would not have been possible without combined effort of government, educational institutions, support services, and professional societies and above all enthusiastic young engineers who are prepared to slog to achieve the goal of delivering quality software.
Main factors which are contributing success story of software development in India are like – supportive govt. policy, emerging infrastructure in communication, adoption of emerging technology in IT, societies support like computer society of India, support by financial institutions and by venture capitalist, and last Indian large human resource.
Communication medium a backbone of every software co. which provided by DOT( department of telecom) and with the help of software technology parks of India(STPI) which provide gateway for the software industry to the external world. STPI which was set up by Ministry of IT Govt of India in 19991 with the objective of encouraging, promoting and boosting software exports from India. STPI has 12 centers which spread  across India.
Govt. facilitating role: GOI play well supportive role for development of  Industry. As early as 1972 the department of electronics introduced policy to permit duty free imports of computers system if importers would promise to export software and services wosth twice value of imported computers in specified time limit. This policy was helped NO. of leading companies in their inception stage.
With the beginning of economic reforms in early 1991s efforts were made to attract foreigners as well as domestic investors to establish fully owned subsidies in the Electronic export zones are.
Creation of NASSCOM( National association of services and software companies) in 1988 and later establishment of STP( software technology parks) in 1990s to provide infrastructure for PVT. Co. to export software. STP was established in 39 locations and the co’s registered with these parks accounted for 68-70% of software exports.
The Government of India has also launched the Software Technology Park (STP) scheme. Till date, around 7000 software units have been given approval by the government to operate under this scheme. The STP scheme is a 100% Export Oriented Scheme. The Indian Government had announced a tax holiday of 10 years for the EOU/EPZ units, especially the software units under this scheme.

Indian professional in silicon valley build personal networks and valuable reputation and used their growing influence within US co. to help Indian co. get foot in the door  of expanding opportunity of outsource IT work. Once the potential of software export was demonstrated  Indian govt helps to build a high speed data communication infrastructure, which allows overseas Indians to return home and set up offshore sites for US clients. The Indian brand for affordable speed and quality.

Value Chain in the Software Industry

Level Activity

0 Maintenance, Data Conversion etc
1 Development, Implementation projects like ERP, CRM, Groupware etc
2 Design, Development and Implementation
3 Consulting
4 Products

(Source: Industry Sources)
(Note: Level 0 indicates lesser degree of complexity, Level 4 indicates the highest degree of complexity)
The value proposition of software industry can be summed up as “ faster, better, cheaper”. The Indian software co’s have taken responsibilities on the end-to-end basis for new software development and for reengineering what I mean by reengineering such a re-engineering taking existing piece of software and making sure that it is upgrade to pace with change with technology or change in market place Indian co’s also understand Maintenance it mean by not only the 5% of time where the effort is in maintenance is taken up in back-fixing but also 95 % of the time where it is taken up in evolving software to keep pace with changes in business practices so that is real maintenance and re-engineering area where Indian software industry has taken responsibility.

At the end I wants to conclude by talk about what the influential thinkers say about India:

 India rated as no. 1 by the US people as far as software outsourcing concerned.
   The same thing with  DER SPIEGEL The famous German business daily


SO its all about our great Indian software industry which help us in development of every individual and to whole India directly and indirectly.


References used for article

 1).Indian software industry and relationship with European market-  Research paper by..DR.Rajendra      K.Bandi-IIM Bangalore.
                            This paper provide information about Software industrial structure of India, Its growth rate, IT software export, Telecommunication infrastructure and also about reason for slow adoption of Internet in India.

2). Report on Indian software industry by SCOPE marketing and information solution provider Limited
                               Executive summary- page no. 2
                               Global scenario-  page no. 3
                                Industry structure and segmentation- page no. 4
                              SWOT analysis of Ind.  Page no.-19

3).Study of Indian software industry based on SWOT analysis by HUANG Feixue- Department of Economics, Dalian Uni. Of technology ,Dalian China….Page no.2,3,4

4).Article on 10 secrets the educational software industry does not wants to know- Article by Merit software pvt.Ltd.

5). Learn more about marketing and sell more software article by Al Herzberg on site of Educational software marketing book club.

6).JRC technical note on A Review of the impact of ICT on learning –OCT-2006. Working paper prepared by Dieter Zinnbaner

7). Indian software industry paper by Subhash Bhatnagar-IIMA
             Information about Software tech. parks-page no.14 and Impact of Industry on Indian economy-        page no.19

8). Speech of Narayan Murthy..

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