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IT industry and Porter's diamond model
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World IT Spending 4 Trillion Level
Began with Indians returning from higher education, IT training, and often work experience
development from subcontracting -> joint venture, e-commerce and web related products and services
from pure exporting -> creating a domestic industry -> clustering
Supporting factors: English language skills as the programming language; time difference; low cost programmers
Porters Diamond Critics Factor of production: skills and knowledge of software programmers
and IT business managers initially not home-grown Demand condition: no local demand related and supporting industries: highly underdeveloped (telecoms
and computing, national communications infrastructure) firm strategy, structure and rivalry: process improvement Indian firms
moved up the value chain (competitive advantage from just cost to a combination of cost quality and high end R&D)
chance: English language skills as the programming language; time difference; low cost programmers
government support: the development of software technology parks, promotion of technical training, subsidies to ICT infrastructure
The size of this sector has increased at a rate of 35% per year during the last 10 years.
The share of information technology industry is 7 percent of gross domestic product (GDP) in Indian economy according to NASSCOM (www.imdr.edu; www.nasscom.org.)
[Dubey and Garg, 2014]
5 Indian IT Companies in the top 100Global leaders in 2010
More than 26 Indian companies appear in top 100 Global Sourcing List (2013)
Promising forecast
2050 US, China and India top 3 GDP growth Nations
2025 Leaders share from IT would be 6-10% of GDP
2025 India GDP expected to be at 10 Trillion USD
Domestic industry: Create 2025 Trillion Dollar Blue Print for Indian IT - 10000 start ups
Dubey and Garg (2014) CONTRIBUTION OF INFORMATION TECHNOLOGY AND GROWTH OF INDIAN ECONOMY, INFORMATION TECHNOLOGY AND GROWTH OF INDIAN ECONOMY, 2(4): p.49-53