Entry & Sustainability of Indian Software Companies in Dubai

by Manik Kinra *

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IT Services exports have continued to lead the Indian IT and ITeS market, accounting for more than 35 percent of industry aggregate. Though the demand in traditional areas like CRM, etc., has been decreasing over the last few years, it is supplemented by the increase in demand for new technologies like Enterprise Application Implementation, and new areas like consulting and slim-computing.

ITeS-BPO segment also continues to grow on year to year basis, with expected 37 percent growth for FY 2005-06. This segment has also matured with addition of newer verticals and niche business units. India’s sustained cost advantage and young population has helped this industry scale up the ladder.

Figure 1.2: Indian IT Services - Revenue and Employment
Revenue in USD Billions and Employees’000

But one area where IT Sector needs to concentrate is the Capital Share, where despite India’s worldwide IT prowess, the country is under-invested. IT Capital share in India’s economy is only 3.5 percent of total as compared to 10 percent for most economies, which is the lowest amongst all economies.

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* Contributed by -
Manik Kinra,
Batch 2006-07,
Great Lakes Institute of Management, Chennai.

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