Information Technology (IT) in the Indian Economy
India has emerged over the last 20 years as the most preferred destination for the outsourcing of Information Technology (IT) services. Various sectors of the Indian economy - such as industry, finance, insurance, communications, and transportation - have adopted IT in a big way. IT and IT-enabled services have been the main driver of growth in India's trade in services in recent years. Starting out with basic data entry tasks, the industry has rapidly acquired a reputation as the primary low-cost destination for voice-based customer contact/support services, finance and accounting, and a range of back-office processing activities. The past few years have seen the scope of these services expand to include increasingly more complex processes involving rule-based decision making and research/analytics services which require informed individual judgment and domain/vertical knowledge. Indian companies have adopted all the modes for supply of IT services abroad. The larger companies have set up wholly-owned subsidiaries in the US, the UK, and the European continent, or have opened branches to facilitate the supply of services. Some companies have adopted the strategy of acquiring local companies or entering into strategic partnerships with them. They use the quality processes, innovative technologies, and delivery models of acquired companies to penetrate the local market. They have permanent employees or hire consultants based in the host country. However, there are certain areas of concern which need to be given policy attention and weight. Some of these areas of concern include the sustainability of a future high growth rate of software exports, a shortage of skilled labor, the low diffusion of information technology in the domestic market, a lagging hardware sector, regional concentration, and excessive dependence on the US. Hence, there is a need for recasting the approach to the growth of IT sector. Dispassionate debate/discussion on the various aspects of the Indian IT sector is a necessary requirement for such a rethinking. It is against this backdrop that this book provides answers to some of the key issues and questions. The book consists of 16 research papers, authored by eminent scholars in the field, which have been categorized in the following three themed parts: Performance, Challenges, and Prospects of Indian IT Sector; Diffusion (Use) of IT into Other Sectors of the Economy; and Social Aspects of IT Sector.
Publication Date: 6/30/2009