The India Advantage
In Information technology (IT) , India has built up valuable brand equity in the global markets. In IT-enabled services (ITES), India has emerged as the most preferred destination for business process outsourcing (BPO), a key driver of growth for the software industry and the services sector.
India's most prized resource in today's knowledge economy is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the U.S. Software export markets is growing at a rapid rate of 25-30% every year. The size of the domestic market in software is also growing fast.
Information Technology has improved the living standards of the common man and enriched their lives. Though, urban India has a high internet density, the government also wants PC and Internet penetration in the rural India.
With globalization at its peak, the number of job openings is on a all time high with the demand of skilled workforce is estimated to more than 10 million in the next 2 years.
Next Generation IT
Demand supply gap in IT industry today:
As present, India has an employed workforce of 5.5 lakh, of which 3.4 lakh work for the software industry and the rest in IT-enabled and other related services. If the current supply of 85,000 per annum is maintained, there will be only 6.8 lakh professionals by 2008.
On the other hand, as per Nasscom estimates, India will require 22 lakh IT professionals by 2008, of which 11 lakh will be for the IT-enabled services sector. The ministry of information technology (MIT) also estimates a demand of 20.7 lakh professionals by the same year—2 lakh for software products, 5.8 lakh for IT services and 12.9 lakh for IT-enabled services and e-business. An estimated 20% increase in international demand will add to the pressure, says MIT.
The IT task force, in a draft report, estimates a shortfall of as many as eight lakh software professionals by 2008.
Future of IT Industry
IDC (India) Limited, the leading technology research and advisory firm, revealed its latest estimates for the India IT industry. According to IDC, the IT industry in India is going to touch 55 B US$ or Rs. 247 thousand crores by 2008. This means a CAGR of 23.1% during the period 2003-08. The size of the industry in 2003 has been estimated as 87 thousand crores up from 72 thousand crores in 2002, a growth of 21%.
The IDC NASSCOM McKinsey Ministry of CIT Task Force report has predicted a fresh demand of over 5 million IT and ITES professionals by 2012.
