India is the second most populated country in the word. Its economy, with a gross domestic product of about 1.8 trillion USD in 2012, is the tenth largest in the world. High growth rates in the IT industry in recent years contributed substantially to India’s economic position of in the world. In 2012 for instance, the Indian IT business process outsourcing industry generated revenues of about 69 billion USD, which is 7.5 % of the 2012 Indian GDP.
However, experts predict a couple of challenges facing this service sector. Upcoming competitors, such as China, or new technology like cloud computing might rearrange the situation (Muncaster, 2013). The goal of the following paper is to focus on the current economic, political, social and technological trends in India. Based on this information, a scenario for Indian IT industry in 2020 will be drawn.
Generally, Indian economy is expected to grow further in the next years. Indians finance minister, P. Chidambaram, predicts his country to be number five by 2020-25 in terms of GDP. Nevertheless, growth rates slowed down in 2012-13 and were the lowest rates since 2003-04. Following, the IT industry might not be able to grow like it did in the past. Furthermore, a couple of hurdles need to be overcome in order to ensure future competiveness. One example is the “linear growth models”.
Inhaltsverzeichnis (Table of Contents)
- Economic Situation
- Political Situation
- Social Situation
- Technological Situation
- Scenario for 2020
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to forecast a scenario for the Indian IT industry in 2020, analyzing current political, economic, social, and technological trends. The analysis will project the industry's future trajectory based on these factors.
- Economic growth and challenges in the Indian IT sector
- Impact of political factors, including corruption, on the IT industry
- Social factors, such as education and gender inequality, and their influence
- Technological shifts and the move towards software-based solutions
- Strategies for maintaining profitability and agility in a changing market
Zusammenfassung der Kapitel (Chapter Summaries)
Economic Situation: This section explores the projected economic growth of India and its implications for the IT industry. While overall economic growth is anticipated, the rate has slowed, necessitating a shift from traditional linear growth models reliant on manpower. The rising competition from countries like China and the Philippines, particularly in call center services, poses a significant challenge. However, India's established ecosystem of support services and long-term experience in mature services offer a competitive advantage. The need for nonlinear growth strategies, involving significant investments in software and methodologies to increase efficiency, is highlighted.
Political Situation: This chapter discusses the impact of corruption on India's economic and social development. While the IT industry has been identified as relatively less corruption-prone, the pervasive nature of corruption remains a significant obstacle to overall economic growth. The strong influence of the IT industry on Indian politics is noted, yet the report suggests that corruption is reaching a peak and may decline in the coming years.
Social Situation: This section examines the importance of education in India's future development and highlights challenges related to gender inequality and educational quality. While progress has been made in basic education and poverty reduction, the gender gap in secondary education is widening, partly due to safety concerns for girls. Furthermore, the quality of basic education remains substandard in many areas, contributing to a widening gap between the rich and poor due to the need for private tutoring.
Technological Situation: This chapter focuses on the anticipated shift in India's IT industry from a service-based model to a software-focused approach by 2020. This transition aims to reduce reliance on a large workforce and increase margins by leveraging reusable software assets, platforms, and methodologies like Six Sigma. The move toward software solutions is seen as crucial for maintaining profitability and agility.
Schlüsselwörter (Keywords)
Indian IT industry, economic growth, political influence, social factors, technological trends, linear vs. nonlinear growth, competition, corruption, education, gender inequality, software solutions, profitability, agility, China, Philippines.
Indian IT Industry Forecast 2020: FAQ
What is this document about?
This document provides a comprehensive preview of a report forecasting the scenario for the Indian IT industry in 2020. It includes the table of contents, objectives and key themes, chapter summaries, and keywords. The analysis focuses on the interplay of economic, political, social, and technological factors influencing the industry's future trajectory.
What are the key themes explored in the report?
The report explores several key themes, including: economic growth and challenges in the Indian IT sector; the impact of political factors, such as corruption; the influence of social factors like education and gender inequality; technological shifts towards software-based solutions; and strategies for maintaining profitability and agility in a changing market. The analysis compares linear and non-linear growth models.
What is the economic situation forecast for the Indian IT industry?
The report anticipates continued economic growth in India, but at a slower rate. This necessitates a shift from traditional linear growth models relying heavily on manpower to nonlinear growth strategies involving significant investment in software and efficiency-enhancing methodologies. Increased competition from countries like China and the Philippines, particularly in call centers, poses a significant challenge.
How does the political situation impact the Indian IT industry?
The report acknowledges the impact of corruption on India's overall economic and social development. While the IT industry is considered relatively less corrupt, the pervasive nature of corruption still hinders economic growth. The report notes the industry's significant political influence and suggests that corruption may decline in the coming years.
What is the role of social factors in shaping the future of the Indian IT industry?
The report emphasizes the importance of education and highlights challenges related to gender inequality and educational quality. While progress has been made in basic education and poverty reduction, the gender gap in secondary education is widening, partly due to safety concerns for girls. Substandard basic education in many areas contributes to a growing gap between the rich and poor, necessitating private tutoring.
What technological shifts are expected in the Indian IT industry?
The report anticipates a shift from a service-based model to a software-focused approach by 2020. This transition aims to reduce reliance on a large workforce and increase profit margins by leveraging reusable software assets, platforms, and methodologies like Six Sigma. This move is deemed crucial for maintaining profitability and agility.
What are the main challenges facing the Indian IT industry?
The main challenges include slower economic growth, increased competition from other countries (particularly China and the Philippines), the pervasive impact of corruption, gender inequality and educational disparities, and the need to transition to a more software-focused, efficient business model.
What strategies are suggested for the Indian IT industry to maintain profitability and agility?
The report suggests a shift towards nonlinear growth strategies, focusing on significant investments in software, the adoption of efficient methodologies (like Six Sigma), and a reduction in reliance on large workforces. This shift towards software-centric solutions is seen as crucial for maintaining profitability and agility in a competitive global market.
What are the key words associated with this report?
Key words include: Indian IT industry, economic growth, political influence, social factors, technological trends, linear vs. nonlinear growth, competition, corruption, education, gender inequality, software solutions, profitability, agility, China, and Philippines.
- Quote paper
- Johannes Köck (Author), 2013, A scenario for the Indian IT Industry in 2020, based on current political, economic, social and technological trends in the country., Munich, GRIN Verlag, https://www.hausarbeiten.de/document/378117
