India, the world's largest democracy with world's second highest population after China and 7th largest area is also one of the fastest growing economies in the world. India's richness and diversity of culture, geographic and climatic conditions, natural and mineral resources are matched only be few other countries of the world.
One of the India's important assets is its vast reservoir of skilled manpower. India's known strength in software and IT and tremendous e-commerce potential ensures a progressive up trend in growth of the Indian economy. India's Telecom sector is the 6th largest network in the world.
71.34% of the population still is in rural areas with rest 28.66% in urban areas. As of 31st March 2005 India's total population was 1.110647 Billion out of which 318.288 Million is urban and 792.359 Million is rural. On March 31st 2010 it is expected to be 1.222363 Billion out of which 363.822 Million will be Urban and 858.541 Million will be rural. Thus, for the balanced development of the society it is important to see that the Industry growth comes from both of these sectors, which is also essential for the industry to perform on metrics like Tele-density, PC penetration etc. and are standard measures to gauge the industry maturity and development.
The present times, in particular, are replete with enormous changes. Economic reforms are radically altering the industrial and business environment of India. Indian Industry and business are in a major transition phase. The opening up of the markets of India has ushered in an era of high competition in the country. The globalization process, the rush of the multinationals in to the Indian market, the open door to imports and the imminent switch over to total buyer's market have thrown totally new demands on the market. New economic policies radically altered the business environment of India and unleashed new challenges.
[...] Trends in the industry The technological trends in the industry can be analyzed by using Strategic Technology Management Systems (STMS) This system delineates the technology life cycle into 8 phases i.e Technology Creation Act of making, inventing or producing a product or an extension of technology not previously utilized and effective management of the innovation process and to link R&D with technology strategic plans Technology Monitoring It is scientific and orderly review and recognition of emerging technological opportunities through competitive analysis using customer, supplier interfaces and other people links. [...]
[...] service segments) IT services and software IT services Project oriented services IT outsourcing R&D services Embedded software and systems Offshore product development Software Packaged Software Enterprise application software ITES-BPO IT services and software Software and services industry has emerged as one of the fastest growing sector in the economy. The total value of the software and services sector export is estimated at Rs 55,500 Crore (USD 12.5 Billion) in 2003-04 an increase of in rupee terms and 30% in dollar terms. [...]
[...] Software exports to Europe grew by 18% in 2006-07 to Rs 10200 Crore (USD 2.1 Billion).For the Indian IT services exports industry beset with mounting pressure on billing rates, global clients getting Increasingly concerned on ROI. The Indian IT services market opportunity had grown by a compounded 29% from 2003-07 from the past USD 13.1 Billion to touch USD 36.3 Billion. Table: segments during 2006-07 Segment % of total Indian software and services segment Software services Packaged software Domestic ITES and software services In Indian software and services segment, the software service dominates the other two segments. [...]
[...] As industry matures in the IT domain and local consumption of IT increases, IT services will also increase, both in terms of the products offerings and nature of the services, in correlation with that of IT industry. Classification of the services industry (w.r.t service segments) This sector can be classified into hardware, software, BPO and education services. Software services The largest chunk of the services market, nearly 74% of it comes from software development, software maintenance, turnkey projects, implementation services, managed services and consulting. [...]
[...] STRATEGY Indian economy will become more increasingly integrated with the world economy and therefore with globalization, industry would source and buy raw materials wherever they are cheapest, manufacture wherever it is the most effective, sell in those global markets where prices are highest, raise finances globally and forge international strategic alliances. Once this integration is fully achieved there will be shakeout within industry both in domestic as well as in overseas companies. This can be seen in Indian IT Industry predominantly as well. [...]
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