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Advantage India - Large Human Resource, Quality Manpower, destination for offshore IT services

Advantage India

Large Human Resource
Every year, approximately 19 million students are enrolled in high schools and 10 million students in pre-graduate degree courses across India. Moreover, 2.1 million graduates and 0.3 million post-graduates pass out of India's non-engineering colleges.

While 2.5-3 percent of them find jobs in other fields or pursue further studies abroad, the rest opt for employment in the IT industry. If the flow from high schools to graduate courses increases even marginally, there will be a massive increase in the number of skilled workers available to the industry. Even at current rates, there will approximately be 17 million people available to the IT industry by 2008.

Indian Education System
The Indian education system places strong emphasis on mathematics and science, resulting in a large number of science and engineering graduates. Mastery over quantitative concepts coupled with English proficiency has resulted in a skill set that has enabled the country to take advantage of the current international demand for IT.

Quality Manpower
Indian programmers are known for their strong technical skills and their eagerness to accommodate clients. In some cases, clients outsource work to get access to more specialized engineering talent, particularly in the area of telecommunications. India also has one of the largest pools of English-speaking professionals.

Government Policies
The Indian government recognizes that Information Technology will influence economic development extensively in the future. IT is a pat of government's national agenda and all policies are driven to achieve maximum benefit to their industry.

  • The liberalization and deregulation initiatives taken by the Indian government are aimed at supporting growth and integration with the global economy. The reforms have reduced licensing requirements and made foreign technology accessible. The reforms have also removed restrictions on investment and made the process of investment easier.
  • The government is actively promoting FDI, investments from NRIs (Non-Resident Indians) including Overseas Corporate Bodies (OCB's) owned by the NRIs. FDI can be brought in through the automatic route, based on powers accorded to the Reserve Bank of India.
  • Till 1994, DOT was the sole provider of basic telecom services in India. The new National Telecom Policy has opened the field for private participants.
  • After realizing the potential of India as a major IT power, the government has taken several initiatives to promote the development of IT. The Ministry of Information and Communication Technology is playing an active role in developing the infrastructure that supports the development of information technology. The IT Bill passed in 2000 provides a legal framework for the recognition of electronic contracts, prevention of computer crimes, electronic filing of documents, etc.
  • Amendments have also been proposed in the Indian Evidence Act, Indian Penal Code and the RBI Act. The mechanism of digital signature has been proposed to address the issues of jurisdiction, authentication and origination.
  • Recognizing the importance of Venture Capital Funding, the Ministry of Information Technology has set up a National Venture Fund for the Software and IT Industry with a corpus of Rs. 100 crore in association with the Small Industries Development Bank of India (SIDBI) and Industrial Development Bank of India (IDBI). The aim of the Fund is to provide Venture Capital to start up software professionals and IT units in the small-scale sector.
  • The IPR law in India

Infrastructure
Credit for India’s rapid growth in the IT software services and ITES/BPO domains must go in part to the availability of a robust infrastructure (telecom, power and Roads) in the country. Relevant telecom facilities are an important prerequisite for the success of the software industry and over the years, the Government has taken steps to ensure that telecom remains a priority area.

Indian IT industry is on track to achieve its long term aspirations of US$ 50 billion in export revenues by 2008 and remain the pre-eminent destination for exports. The industry has grown at a CAGR of 46 percent since 1999, which is higher than the growth rate required to reach the target set in the first NASSCOM-McKinsey Study.

"Today, India is undoubtedly the pre-eminent destination for offshore IT services"

-Courtesy NASSCOM

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