The Indian IT Industry

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Indian IT Industry Management Information Systems Mid-term Review Balasubramanian P [MS14A020] Chandan Kumar Sahani [MS14A023] Chirag Gupta [MS14A024] Overview of Indian IT Industry The Indian IT industry is increasing steadily despite the global slowdown in 2009. When the whole of the world witnessed negative growth, Indian IT industry still managed to showcase a growth of 5.5%. The industry is set to register the historic landmark of US $ 50 billion exports current year, according to the NASSCOM President, Som Mittal. The market of domestic is also hopeful to witness 12% growth, this current year. Potential size of India’s…show more content…
It is expected to sum another 1,50,000 jobs in the coming fiscal year according to NASSCOM. The phenomenal success of Indian IT- ITeS industry can be contributed to the favourable government policies, healthy growth of related industry and competitive environment prevalent in the industry. The interplay of these forces has led to putting the industry on the global map .The IT industry has not only transformed Indian image globally , but it has also exercised economic growth by increasing the higher education sector. The applications of IT are unmatched in current world. It has employed almost to 10 million Indians and hence, has contributing a lot to social transformation in the country. Furthermore, Indian business, across all other sectors, largely depends on the IT & ITeS service providers to make their business processes effective and profit making. The Indian manufacturing sector consists of the highest IT expenses followed by automotive industry, chemical and consumer product industry. IT is seen as change enabler and source of business values for organisations by 85% of the respondents, according to a study which was done by…show more content…
No doubt, IT in India is a success story; but sustained success is what the industry must aim for. The Information Technology industry in India revolves mainly around outsourcing and a major chunk of revenues it earns is from exporting. IT products account for less than 2% of its revenues. There is a lack of innovation. Research and Development in this field is more or less sidelined. India has no dearth of cheap skilled employees proficient in English language. This demarcates India from other countries where either the workforce is not cheap or the understanding of the English language is substandard. The Indian IT industry is aware of it and is tapping the resource which is, Human Capital; to full use. Even the industry leaders in India have not moved away from this line of thought. With this business model, stagnation in growth seems inevitable. The big four underlying problems which the industry needs to address in the near future include: 1. Business Model Research & Development expenditure in Indian IT companies is minimal. In other parts

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