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Abstract

India has the world's second largest population and one of the fastest growing economies in the world. India has a promising future, given the unprecedented growth in economy and its
clout in the global issues. India is now riding on the wave of a gigantic boom in computer-driven new economy. Many developed countries of the world are seeking the huge pool of English-speaking, talented software professionals in India. As the world is transforming towards knowledge society, India too is moving proportionately, competing with the world. The increase of Internet users and the advancement of information and communication technology in India has boasted the development towards e-commerce in global economic society. In IT sector, India is booming as a super-power. In the last few years, India has made rapid strides in the IT sector, especially in the software services and IT-enabled services. In this paper, we analyze the picture of IT industry in the very near future in India and contribution of India in world's Information Technology Sector.

Introduction

From the 1950s, IBM had a virtual monopoly of computers in India. The 360 series release of 1960s was the major work-house of the large organizations. They even maintained a chain of programmers who could write down softwares for their machines. However, in 1978, when George Fernandes, in the Ministry of Industries at that time, commanded IBM to take local share-holders into its subsidiary, the company refused strictly and went back after winding up all its operations in India. Its ex-employees then set-up Computer Maintenance Corporation, with the primary object of maintaining IBM computers.

During the period of 1995-2000, the Indian IT industry had recorded a C.A.G.R. (Compounded Annual Growth Rate) of more than 42.4 percent, which is almost double the growth rate of IT industries in many of the developed countries. Foreign companies, particularly American companies, have played a vital role in making India an emerging IT super-power in the world. These MNCs account for nearly 22 percent of Indian software exports. According to the latest NASSCOM estimates, in 2001-02, multi-national infotech companies exported software worth Rs. 6,500 Crore from India. Country's total software export was pegged at Rs. 29,400 Crore. In terms of investment and growth, U.S. companies like Cognizant Technologies (largest export revenue earning MNC), IBM, Oracle, GE, Cisco, Compaq, Intel, amongst others, led the MNCs in the Information Technology sector. Nine out of top-20 Indian IT firms are from United States. These account for over 37 percent of the turnover of the top-20 firms operating in India. Despite their significant contribution to the IT sector, these companies have to face a number of procedural and operational problems in India.

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Anuranjan Misra,
MCA, M.Tech. (CSE), LLB,
Currently working as Assistant Professor in Master of Computer Application Department at Academy of Business & Engineering Sciences (ABES), Ghaziabad.
Also pursuing Ph.D. from MNNIT, Allahabad,
Article posted on December 21, 2008.