IT Sector

Today, large firms that employ between 1,00,000 and 3,00,000 software workers are in the process of being restructured. Changes in technology, geopolitics and cut-throat competition have unleashed a cost-cutting drive. With respect to lay-offs, companies are resorting to informal practices and coercion due to legal constraints and fear of public backlash.

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Software Sector: Trends and Constraints

Vol. 36, Issue No. 34, 25 Aug, 2001

C Jayachandran, Chandana Chakraborty

Based on a survey of software-related companies in major cities of India, the authors provide an analytical framework for examining the organisation and size of the Indian software industry. The analysis shows that the Indian software industry lacks diversification in types of export, and relies mainly on software services exports. It also suggests that while there exist significant opportunities for the industry to expand domestically and internationally, the realisation of such expansion depends on major reforms in infrastructure planning and regulatory rules.

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Structure and Growth of India's IT Exports

Vol. 36, Issue No. 34, 25 Aug, 2001

K J Joseph, K N Harilal

The policy initiatives taken to develop the information technology sector in India have yielded rich dividends in terms of exports and established the country's credibility in international IT markets. However, the focus has mainly been to promote IT as a foreign exchange earner. This paper looks at India's performance in software exports, the implications of this boom on the availability of skilled manpower in other competing sectors, and the possible threats to the sustained growth of software exports. To combat some of the negative offshoots of the current export-centric IT scenario, the authors say a proper incentive structure needs to be looked at, and the supply of technically skilled personnel enhanced. Most important of all, the diffusion of IT into other areas of the economy should be accelerated to help in the sustained growth of the sector.