Indian IT industry: a performance analysis and a model for possible adoption

India's software and services exports have been rising rapidly. The annual growth rate ranges between 20 -22% in IT services and nearly 55 % in IT-enabled services (ITES), such as call centres, Business Process Outsourcing ( BPO) and other administrative support operations. Together they are predicted to grow at 25% pa till 2010.The IT industry is highly export oriented and the exporters are predominantly Indian. The Indian BPOs (ITES) are moving up the value chain, handling high end data for airline information, insurance, banking sector and mortgage companies, enterprise resource planning, among others. Some of the companies have already moved into significantly higher value added segments such as mission- critical applications, development and support, product design, HR Management, knowledge process outsourcing for pharmaceutical companies and large complex projects. Software exports make up 20 % of India's total export revenue in 2003-04, up from 4.9 % in 1997.This figure is expected to go up to 44% of annual exports by 2010. Though India accounts for just about 3 % of the world market for information technology services, this sector has been growing at a scorching pace, helped by a large pool of English-speaking workers, nearly 4 million engineers and the increasing tribe of tech-savvy entrepreneurs in the country. The Information Technology industry currently accounts for almost 4.8 % of India's GDP. It will account for 7 % of India's GDP by 2010. Software and IT enabled services have emerged as a niche sector for India. This was one of the fastest growing sectors in the last decade with a compound annual growth rate exceeding 50 per cent. Software service exports increased from US $0.50 million in 1990 to$5.9 billion in 2000-01 to 23.6 billion dollars in 2005-06 recording a 34% growth. A compound annual growth of over 25% per annum is expected over the next 5 years even on the expanding base. The impact on the economy of projected software and IT enabled service exports of 60 billion by 2010 is likely to be profound. One manifestation is that India notched up a current account surplus in 2001-02, for the first time in 24 years. India further needs an open environment under GATS to promote exports of services through outsourcing and off-shoring . The present study examines the growth performance of India’s IT industries, with particular attention paid to the role of policy in this process. The study recognizes that emergence of a strong Indian IT industry happened due to concerted efforts on the part of the Government, particularly since 1980s, and host of other factors like Government-Diaspora relationships, private initiatives, emergence of software technology parks, clustering and public private partnerships. In this study we further look at the major parameters of the Indian IT and ICT industry in global context and give justification for including the main factors responsible for the IT boom in India. The study has looked into the past and present trends of the Indian IT industry and has considered further needs of IT sector to act as a catalyst of growth and development. The study has examined whether the Indian IT growth does have enough lessons for other countries to model their IT policy which may help them to shape their IT industry as driver of growth and development. IT firms were actually required to export software in the early days of the industry. This arose in the context of a shortage of foreign exchange in India in the 1970s and early 1980s.Software firms that needed imported inputs were required to earn foreign exchange themselves through export of software. This enabled them to get an idea of global markets very early. Besides formulating the national vision to promote software industry in India in the early 1980s by the government, there were deliberate attempt by the companies to promote software production like compilers, device drivers and operating system to cater to the domestic hardware sector. The high tariffs for the hardware sector had meant that the production of domestic hardware segment (including PCs which were introduced in the same period) had to be sustained requiring necessary software’s like operating system and drivers. Subsequently by mid 1980s, software started coming up unbundled with the hardware. This further gave fillip to the software industry and exports. The 1990s and early 2000 saw the rise of Software Technology Parks and formation of the Ministry of Information Technology, respectively. Despite liberalization of the 1991, the software industry flourished signifying the inherent strength that it developed due to benign and enabling environment provided over a period of time and also the fact that the 1990s saw the dramatic decline in telecommunication costs (government explicit intervention) and the commercialization of the internet along with the Y2K “problem”. The Data Envelopment Analysis (DEA) model is used to work out technical efficiency of Information and Communication Technology ( ICT) Industry in host of countries which are front runners as far as ICT is concerned. India lags behind the most as far as ICT (not IT) is concerned. However, information and Communication technology industry has brought revolution in India because it has reduced intermediation in business and society, provided solutions across sectors and is increasingly becoming an important tool for national development. DEA is also applied to benchmark the performance of the 92 Indian Software Companies for 2005- 2006. The impact of various determinants on technical efficiency of the Indian Software companies is worked out using tobit regression. The impact of the explanatory factors on net exports of 92 software firms in 2005-06 is also worked out using simple regression exercise. The study also works out technical efficiency of 36 telecommunication firms in India and examines the determinants for new technology adoption by such industries. The study uses a Malmquist index to estimate total factor productivity changes decomposed into efficiency change( catching up to the frontier technology) and technical change( movement of the frontier) for the common software firms existing between 1996 and 2006 E-government is the application of Information and Communication Technologies (ICT) by government agencies. Its use promises to enhance the effectiveness and efficiency of government and alter its relationship with the public. The study outlines E-Governance models for effective governance and for higher agricultural growth and development. E-Commerce primarily refers to buying, selling, marketing and servicing of products or services over internet and other computer networks. E-Commerce in India is just taking off with the advent of Railway and Online Air bookings and Net banking. The business is likely to grow to Rs 2300 crore by 2007 .Electronic commerce allows efficient interactions among customer, suppliers and development partners cutting down on transaction time and reducing the costs of doing business. The role of government is to facilitate the development of E-Commerce. For promoting South-South Cooperation and making it meaningful, the governments of the member countries need to pool resources and capabilities in R&D and human resource development for harnessing the fruits of Information and Communicating technologies. The study spells out in detail a number of examples where ICT has been used by rural communities for their benefit and for policy and development goals of the government in general. Web based software development and software product development (like device drivers) is necessary for providing complete business and consumer oriented solutions. These are also areas of interest for the Indian IT entrepreneurs to work upon in times to come. India’s relatively unsafe e-security environment is costing the BPO/ITES industry. The new IT Act (2000) needs to crucially define cyber harassment, phishing and cyber stalking to take care of cyber crimes in India. With the Indian IT/BPO exports to reach 60 billion by 2010, such companies need to invest in upgrading security measures for sustaining competitiveness. Organizations are not obliged under the IT Act to implement data security measures to protect consumers and clients. All this makes it obvious that qualitative progress cannot be made without enacting comprehensive data protection legislation. The Information and communication technologies (ICT) indicators of India are 13 million PCs, 40 million internet users- country with the fifth-largest number of Internet users,143 million mobile phones and 60 million subscribers for fixed lines in 2006. These are modest figures in comparison with the ICT penetration indicators achieved by the front runners like Taiwan, South Korea, Japan, UK, US, Nordic countries in Europe, among others (see the text for our strength and weaknesses in the ICT infrastructure in comparison with some other front runner countries). India’s Strengths lies in its availability of pool of scientists and engineers and quality of maths and science education along with quality of business schools. We are also ranked quite high in terms of cluster development, foreign technology licensing and Government prioritization of ICT. The weaknesses are the telecommunication infrastructure and speed of new business registration. However, Information and communication technologies(ICT) has brought about revolution in India particularly since 1990s .This is because it has reduced intermediation in business and society, reduced mobile and fixed telephony rates(because of concerted policy interventions by the government), provided solutions across sectors, provided both CDMA and GSM mobile technologies (and now Wi-Max technologies for internet access at different public places using PC), re-organizing firm level behavior, empowering individuals by providing them with more information and is increasingly becoming an important tool for national and rural development through E-governance, E-Banking and E- Commerce programmes. In addition, the success of the Information Technology industry in India is intertwined with information and communication technologies as most of the Information technology enabled services use such technologies for providing their services. The quantitative results of the paper answers the following- what orientations in inputs should be done by inefficient software and telecommunication firms and ICT Industry in general to reach the ‘ best practice frontier’( and have operational excellence), examines the relationship between technical efficiency and net exports of software firms along with the impact of host of explanatory factors like size of firms in terms of sales and total cost, among others on technical efficiency and net exports for cross section of software firms using tobit analysis, gives some reasons for relatively low ICT penetration in India and what can be done to transform India’s relatively good ICT readiness and ICT environment into higher ICT usage, answers why telecommunication firms are adopting new technologies and estimates total factor productivity changes in software firms which can be further used to model wage and price estimation of products and services offered by software firms over time. The paper confirms the improvements in productivity, efficiency change and technical change of the Indian Software industry from 1996 to 2006. Synopsis Chapter Wise Chapter one describes the major parameters of the Indian Information Technology (IT) Industry in India today and in the immediate past. The chapter further analyzes the reason for the ‘boom’ in the Indian IT sector. We also outline an electronic governance Model which can become a tool for effective governance. DEA is applied to benchmark the performance of the 92 Indian Software Companies for 2005- 2006. The impact of various determinants on technical efficiency of the Indian Software companies is worked out using tobit regression. The impact of the explanatory factors on net exports of 92 software firms in 2005-06 is also worked out using simple regression exercise. . Further this chapter uses a Malmquist index to estimate total factor productivity changes decomposed into efficiency change and technical change for the common software firms existing between 1996 and 2006. Chapter two gives an account of the position of the Indian Information Technology (IT) Industry and the Indian Information and Communication Technology (ICT) Industry in the global context and analyzes the strengths and weaknesses of ICT Infrastructure across some countries. Technical Efficiency of the Indian ICT sector is worked out using the mathematical model of Data Envelopment Analysis. The study also works out technical efficiency of 36 telecommunication firms in India and examines the determinants for new technology adoption by such industries. Chapter Three describes why and how the Indian IT industry can act as a catalyst of growth and development. An account of an effective electronic governance model for Agriculture Sector is also given. Chapter Four looks at the past of IT industry since 1960s keeping policy in mind. This chapter also outlines an export success model . Such models can be emulated by other countries. Chapter five describes the hurdles and constraints faced by the India IT industry and give an account of the policies and strategies which can be adopted to address the hurdles and concerns of the ICT sector. The last Chapter gives the conclusions, suggestions and policy advice for making IT as a tool for addressing some core inadequacies in the system like poverty, inequality, healthcare and education, among others.IT; ICT; ITPOLICY; OUTSOURCING; DEA ANALYSIS; TECHNICAL EFFICIENCY; TOBIT; NETEXPORTS; MALMQUIST INDEX; TOTAL FACTOR PRODUCTIVITY CHANGE; EFFICIENCY CHANGE; TECHNICAL CHANGE

Traditional vocations and modern professions among Tamil Brahmans in colonial and post-colonial south India

Since the nineteenth century, Tamil Brahmans have been very well represented in the educated professions, especially law and administration, medicine, engineering and nowadays, information technology. This is partly a continuation of the Brahmans’ role as literate service people, owing to their traditions of education, learning and literacy, but the range of professions shows that any direct continuity is more apparent than real. Genealogical data are particularly used as evidence about changing patterns of employment, education and migration. Caste traditionalism was not a determining constraint, for Tamil Brahmans were predominant in medicine and engineering as well as law and administration in the colonial period, even though medicine is ritually polluting and engineering resembles low-status artisans’ work. Crucially though, as modern, English-language, credential-based professions that are wellpaid and prestigious, law, medicine and engineering were and are all deemed eminently suitable for Tamil Brahmans, who typically regard their professional success as a sign of their caste superiority in the modern world. In reality, though, it is mainly a product of how their old social and cultural capital and their economic capital in land were transformed as they seized new educational and employment opportunities by flexibly deploying their traditional, inherited skills and advantages

New media practices in India: bridging past and future, markets and development

This article provides a review of the academic and popular literature on new media practices in India, focusing on the country’s youth's use of mobile phones and the Internet, as well as new media prosumption. One particular feature of the Indian case is the confluence of commercial exploitation of new media technologies and their application for development purposes in initiatives that aim to bring these technologies to marginalized segments of the Indian population. Technology usage in turn is shaped by the socioeconomic location of the user, especially in regards to gender and caste. The potential of new media technologies to subvert such social stratifications and associated norms has inspired much public debate, which is often carried out on the Internet, giving rise to an online public sphere. In all of the writings reviewed here, the tension surrounding new media technologies as a meeting place of the old and the new in India is paramount

Business for Sustainable Society Project

This three-year project's main objective was: "How can business/industry realise a sustainable society?" The two goals for achieving the main objective were: (1) to identify promising business models for realising a sustainable society and develop relevant methods to quantify their potential while proposing measures to promote such businesses, and (2) to clarify the conditions of business/industry activities and a direction of local development that are suitable for sustainable local society. "Research on Environmentally-Sound Business Models (BM Research)" and the "Research on Environmentally-Sound Local Industry System (LIS Research)" were implemented with these two goals in mind. They were reinforced with associated research to accomplish the goals based on the results of a progress review that was made on completion of the first half of the Third Phase

A Review of Problems and Challenges of Library Professionals in Developing Countries including Pakistan

Introduction “A librarian is a person who looks after the storage and retrieval of information. In a workplace, the librarian is usually a professional who is trained and educated to deal with information in a wide variety of formats and settings” (WordiQ, 2010). Librarian helps users to navigate into the voyage of internet and evaluate information efficiently. Librarian offers a helping hand for users to find out the required piece of information and to use it for personal and professional purposes (BLS, 2011). Due to the advent of Internet, World Wide Web and proliferation of online catalogue, the role of librarian has been changed. Now he is more efficient and has new roles as intermediary, facilitator, end-user trainer/educator, web organizer & designer, researcher, interface designer, knowledge manager/professional and sifter of information resources (Rao & Babu, 2001). Librarian should be knowledgeable in a variety of information sources and follow the new trends and advancements in computers, media and publishing (Careeroverview, 2011). Research Objectives 1. To review the problems faced by librarians in new digital era. 2. To identify the major challenges for librarians to work smoothly in cyber environment. 3. To furnish recommendations to overcome the problems and to tackle the challenges. Methodology The study is based on comprehensive review of related literature & informal semi-structured interviews which were conducted by the second author during some international conferences, with library professionals & scholars from developing countries i.e., Bangladesh, Bhutan, India, Malaysia, Nepal, and Pakistan with the purpose to explore their perceptions, opinions and observation regarding the problems & challenges confronted by the librarians due to changing information landscape. Available material on the Internet was also explored. Studies Conducted to Investigate the Problems/Challenges Confronted by Librarians in Developing Countries in Changing Information Landscape New tools of information technology have absolutely changed the role & responsibilities of librarians. A number of studies have been conducted to explore the problems faced by librarians. Given section reviews the studies conducted at International level in general and particularly in developing countries to investigate the problems confronted by the librarians. Ademodi & Adepoju (2009) investigated the computer skill among librarians in academic libraries on Ondo and Ekiti State in Nigeria. It was found the shortage of computers and computer skills among professionals. The study recommended that more attention and funds should be provided for training and procurement of ICT infrastructure in Nigerian University libraries. For computerization purpose, library administration should solicit funds and assistant from foreign agencies and foundations who are interested for the cause. Adomi & Anie (2006) in their research on computer literacy skills of professionals in Nigerarian University libraries concluded that most of the professionals do not posses high level of computer skill and their use of computer and technology is still maturing. They recommended that library management and leaders should organize and offer in-house computer training programmes for librarians and enough computers should be provided in this regard. Trushina (2004) discussed the issues related to the internet as well as the correlation of professional codes and their implementation in library practice. He stated that libraries depend on ethical principles more than any other institution because library services are essentially human-oriented. He stressed that librarians must follow the intellectual freedom principle and they have a moral responsibility to the patrons. Hashim & Mokhtar (n.d) studied the trends and issues in preparing new era librarians and information professionals. They reported that the following trends are essential for new era librarians’ i. e. a vision towards information and knowledge rich society, globalization of information, integrated and widespread ICT applications, growth of electronic/internet resources, role of digital/electronic/virtual library, access role replace custodial role, strategic alliances, partnership and collaborations, librarians need new management knowledge and skills, specialized knowledge & skills in library and information management, trend to develop digital contents to facilitate access. It was concluded that new era librarian will become a guardian of digital information and digital librarians with newly acquired skills can play a meaningful and leading role in the networked information society of the millennium. Sreenivasulu (2000) studied the role of a digital librarian in the management of digital information systems. He stressed that the multimedia nature of the next generation of digital libraries requires the digital librarians (DL) to be essentially a type of specialist librarian who has to manage and organize the digital library, handle the specialized tasks of massive digitization, storage, access, digital knowledge mining, digital reference services, electronic information services, search co-ordination, and manage the archive and its access. He should be well-versed in markup languages, cataloguing, metadata, multimedia indexing and database technology, user interface design, programming, and Web technology. Johnson (2007) viewed library and information science education in developing countries. He concluded that LIS programs in developing countries continue to suffer from lack of financial support by governments. Wallis (2005) found that information literacy is vital skill set for citizens of information societies. They suggested that the librarian must support learning at all levels. They are needed to pass skill set of technological and media literacies to citizens at all levels of society for economic, social and personal empowerment. Rahman, Khatun & Islam (2008) reviewed the library education in Bangladesh. The study found that majority of institutions in Bangladesh do not have well-equipped computer labs or sufficient numbers of computers for students. A sufficient number of classification and cataloguing tools (DDC, LC, Sears list of subject headings for practical were not present. Many institutions either have no library or inadequate collection of textbooks. Professional’s status was also found very low, low pay scale and limited opportunities for promotion. In Sri Lanka, Wijayaratne (n.d) probed the challenges encountered by the librarians of developing world in providing library services to support open and distance learning. It was concluded that the attitude of the government towards libraries in Sri Lanka has been changed during the last few years and the government has made several approaches to develop the libraries particularly University libraries. Government also identified the capacity of distance education to accommodate the huge number of A/L completers who cannot gain admission to learn. It was found very important for the OUSL to boost the process of achieving its development goals to upgrade the quality and maintain the standards of distance education in Sri Lanka. In Nepal, Siwakoti (2008) found that there was no government agency to control, monitor and evaluate the school libraries activities. There was lack of awareness programs, budgetary constraints, inadequate space, inadequate library materials, lack of trained and skilled manpower and lack of appropriate government policy and lack of information literacy. In Malaysia Lee, Brown, Mekis & Singh (2003) investigated that there was lack of full-time teacher librarians and selected teachers are asked to take charge of the school resource center as one of their administrative duties. There was no uniform current syllabus for the training of teacher librarians. The biggest problem which was found is that in Malaysian teacher librarians are facing professional isolation. In Iran Gavgani, Shokraneh & Shiramin (2011) concluded that librarians do not have traditional skills and sufficient background knowledge to meet the changing needs of their customers. They need to be empowered by new skills and information before going to empower their patrons. So there must not be a gap between librarian’s professional/technological knowledge and their societies informational need that to be answered by librarians. Need for changing the syllabus of medical library and information science education in Iran was also felt. In India Jestin & Parameswari (2002) explored the challenges for library professionals in the new millennium. It found that library professionals in India were subjected to various challenges. The introduction of computers and new technology was a challenge to all librarians. It was conclude that librarians should be ready to participate in the process of generating and distributing information and knowledge for quality of life and education for all. Librarians must unite to withstand the revolutions that will occur in the information and communication fields. Similarly, Dasgupta (2009) searched out that in India there is non-existent of norms and standards for the education of librarians. Problems for Indian librarians discovered in his study were emergence of new LIS schools, insufficient faculty strength, lack of accreditation bodies, lack of proper library facilities, inadequate physical facilities, little attention for selection criteria, and lack of apprenticeship programs. Study suggested that the Government of India should play a leading role in promoting LIS education in India, by creating more job opportunities for LIS professionals and removing disparity in pay scales among LIS professionals. Ali & Bakshi (n.d) explored that LIS profession is facing many challenges such as lack of finance, inadequate infrastructure, lack of knowledge and training, lack of high quality teaching staff, lack of permanent faculty for distant programs, lack of admission policy and evaluation, absence of accreditation body and supporting policy at national level, lack of global perspective and lack of library visits. It was suggested that admission test should be conducted before admission in LIS and practical hours should be increased. Attendance should be made compulsory and syllabus should be up-dated. Availability of high caliber staff should be ensured. Mobile based learning programmes should be adopted for distance learning. For the purpose of imparting practical training, there should be complete infrastructure. It was concluded that to support learning and teaching ICT should be used because e-learning would be the future of education. Like other developing countries, studies conducted in Pakistan do not show the healthy picture of LIS profession. In Pakistan, even all libraries are not fully automated. Internet service for users is being provided in University libraries but in public and college libraries the provision of Internet service is not encouraging. Haider (2003) found that the present library scenario in Pakistan is not so impressive and is suffering from inadequate funds and lack of bibliographic resources in the country. It was suggested that in order to meet new challenges, library schools are needed to improve the quality of their teaching staff and revise the curricula as well. The amount of research by library professionals into their own discipline is simply inadequate. Mohammad Asghar (1992) listed some main problems as the lack of opportunities for proper training, appropriate guidance, availability and access to information sources, financial assistance and sponsorship, encouragement, publication or dissemination of research findings, and personal interest and initiative. As Khalid, Hafiz (1997) states, the library staff is an area of weakness in Pakistan; there are several causes of this problem in Pakistan such as the faulty system of selection, lack of training, poor librarian’s status, etc. It was pointed out by Ministry of Education in National Education Policy, 1998; p.113 that: College libraries, which are the largest group of libraries in the country, have also been facing the problem of poor services, outdated collection of reading materials, financial constraints and inadequate professional staff

The global cultural commons after Cancun: identity, diversity and citizenship

The cultural politics of global trade is a new and unexplored terrain because the public domain of culture has long been associated with national sovereignty. States everywhere have invested heavily in national identity. But in an age of globalization, culture and sovereignty have become more complex propositions, subject to global pressures and national constraints. This paper argues three main points. First, new information technologies increasingly destabilize traditional private sector models for disseminating culture. At the same time, international legal rules have become more restrictive with respect to investment and national treatment, two areas at the heart of cultural policy. Second, Doha has significant implications for the future of the cultural commons. Ongoing negotiations around TRIPS, TRIMS, GATS and dispute settlement will impose new restrictions on public authorities who wish to appropriate culture for a variety of public and private ends. Finally, there is a growing backlash against the WTO’s trade agenda for broadening and deepening disciplines in these areas. These issues have become highly politicized and fractious, and are bound to vex future rounds as the global south, led by Brazil, India and China flexes its diplomatic muscle

Emergence of Knowledge Society: The Indian Scenario

Knowledge Society is characterised by recognition of knowledge as main source of efficiency, competitiveness, and economic growth. Since late 1990s, a large segment of mainstream media and economists have been obsessed with the continued run of ‘Knowledge Economy’ in OECD countries and its emergence in the developing countries. This new model of growth and development, depending more on human knowledge and efficiency rather than on difficult to disperse physical capital, is supposed to be more egalitarian. Proper policies in developing countries are advocated to build up large volume of ‘working capital’ in terms of human resource and corner a large market share of the global knowledge economy in contrast to their financial crunch and meagre stake in global goods-trade. In this paper we look at some of these issues in light of Indian experiences to bring out the inherent characteristics of the Knowledge Economy from amidst the rhetoric and underline the task ahead of us to truly transform India into a knowledge society.Knowledge Economy; Labour; Information Technology;

Bioinformatics and the politics of innovation in the life sciences: Science and the state in the United Kingdom, China, and India

The governments of China, India, and the United Kingdom are unanimous in their belief that bioinformatics should supply the link between basic life sciences research and its translation into health benefits for the population and the economy. Yet at the same time, as ambitious states vying for position in the future global bioeconomy they differ considerably in the strategies adopted in pursuit of this goal. At the heart of these differences lies the interaction between epistemic change within the scientific community itself and the apparatus of the state. Drawing on desk-based research and thirty-two interviews with scientists and policy makers in the three countries, this article analyzes the politics that shape this interaction. From this analysis emerges an understanding of the variable capacities of different kinds of states and political systems to work with science in harnessing the potential of new epistemic territories in global life sciences innovation

Charity and Philanthropy in Russia, China, India, and Brazil

This report, authored by Joan Spero and published in collaboration with WINGS builds greater awareness and understanding of the diversity and challenges of civil society in the so-called BRIC countries. In the absence of comprehensive data on philanthropy in these emerging market economies, the report identifies the cultural, economic, social, and political forces shaping giving in the BRIC countries and describes the growth and nature of their philanthropic activities. This report is an important first step in a broader conversation about the development of better systems for documenting and sharing the story of philanthropy in all its forms around the world