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Thursday, September 10, 2009

How India's New Generation Is Different

OLDER GENERATION                      NEW GENERATION

-- Idealized Gandhi-style poverty,  -- Wants to get rich, admires
   Socialist theory                    Capitalism

-- Grew up amidst famines           -- Grew up amidst food surpluses

-- Had only one state-run TV        -- Can watch 50 TV channels
   channel                             via cable and satellite TV

-- Mostly technophobic              -- Mostly technology-savvy

-- Tended to be avid savers         -- Tend to be guiltless consumers

-- Grew up with stable government   -- Grew up with constantly shaky
   led by one party; upper-caste       coalitions; more voice for lower
   domination                          castes

-- Favored medicine, engineering,   -- Favor computer-driven and other
   or civil service as careers         high-paying career choices

-- Average literacy levels of 30%   -- Average literacy levels of 52%

-- Tastes tended toward tradition:  -- Tastes tend toward modern: West-
   drinking tea, eating at home        ern food and sodas, eating out

India Software Industry

The India Software Industry has brought about a tremendous success for the emerging economy. The software industry is the main component of the Information technology in India. India's pool of young aged manpower is the key behind this success story. Presently there are more than 500 software firms in the country which shows the monumental advancement that the India Software Industry has experienced.

The Indian Software Industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7 billion in 1999-2000. No other Indian industry has performed so well against the global competition. According to statistics, India's software exports reached total revenues of Rs. 46100 crores. The total share of India's exports in the global market rose form 4.9 per cent in 1997 to 20.4 percent in 2002-03.

It is expected that the India Software Industry will generate a total employment of around four million people, which accounts for 7 per cent of India's total GDP, in the year 2008. Today, the Software Industry in India exports software and services to nearly 95 countries around the world. The share of North America (U.S. & Canada) in India’s software exports is about 61 per cent. In 1999-2000, more than one third of Fortune 500 companies outsourced their software requirements to India.

The Government has also played a vital role in the development of the India Software Industry. In 1986, the Indian government announced a new software policy which was designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. In addition, to attract foreign direct investment, the Indian Government permitted foreign equity of up to 100 percent and duty free import on all inputs and products.

The software industry being the main component of the IT Industry in India has also helped the IT sector in India to grow at a good pace. As per the proceedings taking place in the software industry the future of the India Software Industry looks promising.

Information technology Industry

Information technology, and the hardware and software associated with the IT industry, are an integral part of nearly every major global industry.



The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector.

The Information Technology Association of America (ITAA) explains the “information technology” as encompassing all possible aspects of information systems based on computers.

Both software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management systems.

Owing to its easy accessibility and the wide range of IT products available, the demand for IT services has increased substantially over the years. The IT sector has emerged as a major global source of both growth and employment.

Features of the IT Industry at a Glance
  • Economies of scale for the information technology industry are high. The marginal cost of each unit of additional software or hardware is insignificant compared to the value addition that results from it.

  • Unlike other common industries, the IT industry is knowledge-based.
  • Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid pace of economic growth.
  • The IT industry helps many other sectors in the growth process of the economy including the services and manufacturing sectors.
The role of the IT Industry

The IT industry can serve as a medium of e-governance, as it assures easy accessibility to information. The use of information technology in the service sector improves operational efficiency and adds to transparency. It also serves as a medium of skill formation.



MAJOR STEPS TAKEN FOR PROMTION OF IT INDUSTRY

Domain of the IT Industry

A wide variety of services come under the domain of the information technology industry. Some of these services are as follows:

  • Systems architecture
  • Database design and development
  • Networking
  • Application development
  • Testing
  • Documentation
  • Maintenance and hosting
  • Operational support
  • Security services

WB lost opportunity to create jobs: Infy

West Bengal has lost an opportunity to create thousands of jobs when it scrapped the proposed IT hub project in Kolkata, a se

nior official of Infosys Technologies said.

"By one stroke, a progressive state like West Bengal has lost an opportunity to create about 5,000 jobs by our company. There is a sense of sadness because the state is missing out on the IT job creation," Infosys director and human resources development head T.V. Mohandas Pai told IANS in Bangalore.

As India's second largest IT bellwether, Infosys had applied for about 100 acres to set up a software development centre under the Special Economic Zone (SEZ), with an upfront investment of Rs.250 crore (Rs.2.5 billion) to create about 5,000 jobs.

The proposed IT township at Rajarhat near Salt Lake became controversial following allegations that land sharks - allegedly backed by promoters of Vedic Realty - had been involved in land acquisition.

Terming the sudden decision of the state government an unfortunate development, Pai said the educated middle-class youth of the state stand to lose out more than the global software major.

"We are not the loser as we have enough capacity in other places across the country to expand. The West Bengal government had promised to allot about 100 acres for our facility though our application had been pending since 2005," Pai said.

Though unwilling to blame the state government for reversing the decision, he said politics was playing spoilsport in the state, as evident from what happened earlier in Singur and now in Kolkata itself.

"The state government is unable to keep its promises. After the Tatas left Singur, this is virtually the last straw on the camel's back. We may have to look out elsewhere though we are keen on having a presence in Bengal too," Pai noted.

With states vying for attracting investments and competing for human capital, Pai said employment generation was the responsibility of the respective governments to retain talent and check migration of jobs.

"We thought the Bengal government would stand by its commitment as we had shown lot of patience in getting the nod for investing in Kolkata. We are shocked by its retrograde step," Pai lamented.

Companies like Infosys, Wipro and ITC Infotech had chalked out plans to set up units in the proposed IT hub.

Earlier, describing the decision as "totally not the right thing to do", Pai told a Bengali news channel in Kolkata that the project could have generated 50,000-100,000 jobs.

"The government should take the pivotal role in land acquisition for any important project," Pai told 'Chobish Ghonta', the 24x7 regional news channel.

Asked if his company was hopeful of returning to the state later, Pai said: "No, I am not hopeful of returning to the state."

IT bellwether Wipro, which already has a presence in Kolkata, declined to respond to the development and its officials were unavailable for comments.

West Bengal will be left out of IT boom: Congress
With West Bengal's Left Front government scrapping the proposed 1,200-acre IT town

ship, Congress leader Manas Bhuniya lamented that youths of the state would not be able to see the light of the IT boom.

"This decision to scrap the project will again push back West Bengal in industrialisation. Thousands of young people of our state will ultimately suffer due to this decision," state Congress Legislative Party (CLP) leader Bhuniya told a media meet here.

Holding Chief Minister Buddhadeb Bhattacharjee responsible for the "mess", he demanded a Central Bureau of Investigation (CBI) probe into the Vedic Village land controversy that has led to the scrapping of the IT project.