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Off
Shore Software Development
India with the use of high-speed data communications
(64 kbps, 2 Mbps and above) provides immense cost
and time savings including 24 hour virtual offices.
This is done through computers situated anywhere overseas
to be used by programmers in India on a real-time and
on-line basis.
Government
Support
Over
the years the Government of India has been realizing
the high potential of employment, modernization and
contribution to economy provided by the software industry.
In 1986 the Government announced the first computer
policy. In May 1998 software was put on its National
Agenda and a National Task force was created under the
order of the office of the Prime Minister. The National
Task Force, a top level body, gave path breaking recommendations
to chart out the growth of software industry in the
next millennium.
The
Government has accorded ‘thrust area’ status
to the software sector. The Copyright Law has been amended
to make it one of the toughest in the world. The new
Information Technology Act seeks to provide recognition
to e-commerce and protection against cyber crimes. The
Government has recently allowed private Internet service
providers to operate in India. All political parties
are supporting the software industry. 16 State Governments
have announced I.T. policies and 7 more have set up
I.T. taskforces and committees. There is almost a computer
software revolution in the country, and both government
and industry are determined to strengthen the brand
equity of Indian software industry and make the country
an IT superpower.
Location
of Software Companies
The
software industry is mainly concentrated around metros.
Lately, Hyderabad, Chennai, Pune and Gurgaon & Noida
have emerged as fast growing software cities. Mumbai
and Bangalore continue to attract investment in software
sector. An analysis of the head quarters of the top
600 software companies demonstrated the following statistics.
|
City
|
Spread
of Hqrs of top 600 Companies
|
|
mumbai
|
131
|
|
bangalore
|
122
|
|
delhi
|
43
|
|
gurgaon
and noida
|
68
|
|
hyderabad
|
64
|
|
chennai
|
55
|
|
calcutta
|
25
|
|
pune
|
23
|
|
thiruvananthapuram
|
14
|
|
ahmedabad
|
10
|
|
bhubaneshwar
|
10
|
|
others
|
35
|
Types
Of Services
Detailed
analysis reveal that majority of software exports are
in "projects" or "professional services".
Since last three years there has been visible shifts
towards off shore project development which also includes
offshore package development. The degree of on-site
development is still very high, but it is expected to
decrease in the coming years with improved data communication
links. The types of services are as under:
| On-site
services |
58.18%
|
| Offshore
services |
33.92%
|
| Products
& packages |
7.90%
|
| Total |
100.0%
|
|
Software
activity
|
Domestic
software %
|
Software
export %
|
| Projects
|
28.5%
|
36.5%
|
| Professional
services |
5.0%
|
44.15%
|
| Products
& packages |
48.5%
|
7.90%
|
Training
|
4.5%
|
1.72%
|
| Support
and maintenance |
4.0%
|
4.25%
|
| I.T.
Enabled Services |
9.5%
|
5.48%
|
| |
100.0%
|
100.0%
|
Break-up
Of Software Activity
An
analysis of break-up of software activity, domestic
as well as exports is as per the following table.
Domestic
Software Market
It
is expected that the domestic software market would
be around US$2.56 billion in 2000-01 and increase to
about US$ 4.1 billion by 2001-02. As per Nasscom report,
India’s domestic market can exceed US$ 18 billion
by 2008.
Software
Export Market
In
1998-99 India exported almost 61% of its total software
exports to North America. Export to Europe was 23% and
the remaining 16% was shared by South East Asia 4%,
Japan 4%, West Asia 1.5%, Australia & New Zealand
2% and rest of the world 4.5%.
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