INFORMATION TECHNOLOGY

The success of Indian firms and professionals in the information technology (IT) arena during the last decade has been spectacular. India is becoming more of a Knowledge based economy. Bangalore is now dubbed as the IT destination, with major US companies having offices there, including Motorola, GE, AT&T, Oracle, and Hewlett-Packard.

About five years ago, the Indian government allowed "Multi-national Companies" to establish software development facilities, provided the software was developed for export. The relatively low cost of labor, land, and facilities made this attractive to the "MNCs".

 

 

 

Since than, the Indian software industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7 billion (including over $4 billion worth of software exports) in 1999-2000.  No other Indian industry has performed so well against the global competition.

The main question is, what's the share of Indian domestic market in the above revenues. And could India device a success story like  Microsoft - a product specific rather than service specific.

 Even while a miniscule fraction of the population has access to computers and the Internet, e-governance is being projected as the way of the future.

 

 

 

The statistics speak loudly and clearly. Seventy nine percent of India’s population lives in villages without the basic amenities and infrastructure that can sustain a knowledge economy.

Yet, the central and state governments in India are investing millions of dollars in promoting IT-based initiatives and the IT industry as vehicles of social and economic transformation.

Are we putting the cart before the horse here? Even if substantial IT investments are justifiable, how must the IT revolution proceed so that the nation is benefited in a wholesome and balanced way?