Information Technology II Ans
Information Technology II Ans
Information Technology II Ans
The global media started writing about India positively only in the past eight years, largely due to the spectacular progress of the Indian IT industry T2K came as a bolt form the blue and a blessing in disguise. Terms like IT superpower and your job is Bangalore and tom Friedmans book The world is flat that went on to become not a mere new York times best-seller, but the best amount many bestsellers in year 2005 brought Indian into the center stage of global IT. The three software services majorsInfests. TCS and Wipro together-have annual revenues of more than $ 10 billion dollars: each of them employs nearly 100,000 employees by the end of year 2008. The number of IT/ITES professionals employed in Bangalore is just short of the combined employment of the entire state of Karnataka. Though, the global recognition is new to India. IT has deep roots in India going all the way back to the discovery of zero! Even in the recent past a number of developments have taken place mostly away from the media glare, some of them includeinvestment in education, nurturing excellence in key educational institutions, emphasis on R & D, imaginative policy planning and political will to support and sustain IT across all areas. They all helped Indian IT to grow to its current formidable position. The role of the government can be seen in various measures. Home Bhabha committee realized the need for focus in electronic and computer on June 26, 1970, the DOC (Department of Electronics) came into being as a scientific ministry directly under the prime minister with proof MGK Menno as secretary to the department and chairman of the Electronics commission. The setting up of IITs and IIMs in 50s and 60s and the encouragement to the private sector to start technical colleges (starting from Karnataka) helped the growth of technical manpower. Public sector ECIL (Electronic Corporation of India) manufactured 12 bit (TDC 12) and 16-bit (TDC 16) computers in late 70s and early 80s. With IBM shutting down operations in 1977, another public sector company CMC was set up to maintain computers (CMC has 923 computers comprising 60 models made by 34 manufactures one time! Recognizing the importance of software exports, SEEPZ (SantaCruz Electronics export processing Zone) was set up in Mumbai in 1973. The Mini computer policy of 1978 opened up computers manufacture to private sector. Many state governments created sate electronic corporations for example KEONICS in Karnataka KELTRON in kraal and UPTRON in Uttar Pradesh. The national informatics center (NIC) was set up in 1977 which played a major role in the later decades to become decisive support system for the government (both the central and state governments). The New computer policy of November 19, 1984 announced by Dr. N Seshagiri with in 20 days of Rajiv Gandhi becoming the prime minister and the software policy of 1986 \kick-started the Indian
IT story NICNET in 1982 brought Interest to Government offices. ERNET in 1986 brought internet to educational and research institutes in INI. Project IMPRESS (computerization of Railways ticketing) stated in 1986 as a pilot in Secunderabad ushered in the first application targeted at aam admi (common man). The rangarajan committee on bank computerization in 1984 set in force a movement that started to shake up government departments to improve delivery of customer service. Communications infrastructure improved with the setting up STPI (software technology parks on India) hubs in bang lore and other cities in 1991. The STPI policy removed the inspector Raj from software companies; the Indian software companies profitable. The nineties also saw a direct push from the government through number of policy measures, some of them include-IT Task force led by prime Minister in 1999 (and several chief ministers at the state level), IT Ministry at the centre ( following by most states) IT fairs (like IT.com and now IT .in), IT parks (starting with cyber city in Hyderabad and ITPL in bang lore), launch of public internet access through VSNL in August 15, 1995, launch of mobile telephony on august 23, 1995. All these measures brought the right focus to IT industry. Chief Vigilance commissioner N Vitas directive in 1997 on full computerization of banks by March 31, 2005, led to what is perhaps the larges IT project in the country both by way of investments and impact. In the current decade, India became the twelfth nation in the world to an IT Act in year 2000 to address to growing E-Commerce and E-business and the attendant cyber security, e-Governance initiatives like e-Saba (single point delivery of citizen services. The formation of NASCOM in 1988 (that sprang into action from 1990) gave a fillip to the nascent software industry. Dewing Mehta during his short and eventful period as the president of NASSCOM give the organization a formidable image and clout. Koran karmic the current president who took over in 2001 (after the tragic death of dewing Mehta), put it on a high pedestal with solid events studies like NASSCOM-McKinsey study and an excellent support from the government ISPAI (ISP Association of India) started in 1994 to address the needs of ISPs (Internet service providers). The recently formed ISA (Indian Semiconductor Association) address the needs of the emerging semiconductor industry. Research output from Indian academic institutions R & D establishments in coming of age. Globally relevant and significant output is coming out of India based research wings of global companies like HP. Microsoft and Google. TCS will be touching 100,000 size and $5 billion annual revenue soon. Wiper and Infosys are not far from this position. With IBM announcing $6 billion investment over three years. Microsoft, Cisco and EMC announcing $ 2 billion investment, the Indian IT industry in grabbing global headlines too. Azi premiji of Wipro, N R Narayana murthy of Infosys and S Ramadorai of TCS are in the global list of leaders. Indian companies are acquiring global companies.
2.Can Information Technology help transform India? Explain. For the past couple of years, the Chief Minister of Andhra Pradesh has used Information Technology (IT) as a "mantra" to get his state to march forward. He has drawn considerable attention in India as well as the rest of the world and is today often referred to as the CEO of Andhra Pradesh. The new BJP-led government at Delhi, recognising the role that IT is playing in the world today in enabling countries to strengthen their technological leadership, and the considerable contributions that Indian professionals are making in this arena both in India and abroad, set up a high-powered IT task force, to break Indians shackles and make her "a Global IT Superpower and a front-runner in the age of Information Revolution". The task force has moved fast and in a considerably short time have come up with two reports. The first report, IT Action Plan, consisting of 108 recommendations suggests "revisions and additions to the existing policy and procedures for removing bottlenecks and achieving a pre-eminent status for India". The second report, referred to as a Basic Background Report on IT Hardware Development, Production and Export calls for a paradigm shift in the IT hardware industry so that it "can survive the future shock of fast changing prices, technological obsolescence and an everexpanding horizon of highly innovative industry", creation of a proper investment climate, and streamlining of procedures for minimising uncertainty, grey market, avoidable licensing and purposeless inspection. The aim is to make India the "number one provider of IT products" in the world. Do these IT reports constitute a first step in making India a global IT superpower? Can IT be used in India to transform the country by providing a new vision to the youth of the country, enabling them to stand up, no longer feeling inferior to others in the world? This article addresses such questions in the context of the IT task force reports. First, some salient features of the report are highlighted. This is followed by a brief analysis of the IT infrastructure today along with the efforts made by different groups and agencies over the last 10-15 years in overcoming the bottlenecks. Analysing our strengths, the article concludes by pointing to the directions that need to be taken to achieve our dream of transforming India. The Current Scenario Export target for IT products and services of $50 billion a year, making India the number one IT design centre, and the number one provider of IT products, are indeed goals to cherish. Before commenting on what needs to be done to move towards such goals and to discuss whether the IT report points in the right direction, let us take a brief look at where we are today. Growth of the Software Industry in India The software industry in India gained recognition in the early eighties, as companies took up export of trained software manpower, especially to USA. Very soon, instead of just exporting persons, several companies started taking up software projects at customer sites, and sent their professionals to carry out this task. Starting with routine jobs, most companies graduated to more and more sophisticated tasks and India started getting recognised as having special talent for software development and management of software projects. It was only in the early nineties, after the Indian software industry got sufficient recognition, that Indian companies were able to win contracts in a large way to carry out software projects off-shore (in India). From then on, projects have gotten more sophisticated and bigger. Today, even though the software tasks carried out by India for the West may amount to a small portion of the worldwide IT industry, Indian companies and professionals are regarded as amongst the best in the world.
However, having achieved considerable success, most front-running software companies are dissatisfied with their performance. They recognise that they have come up with very few products that they own. Although they may have made significant contributions to many products on the shelves, hardly any carry their brand names. They are eager to make and own products, but they have little experience in marketing products worldwide. The home market is still too small to allow these products a trial site as well as a little protection, before they could handle fierce competition. Product ownership is imperative if the Indian software industry is to take a major leap forward. Certain parts of the IT task force report aim to address this need by proposing liberalisation. However, the task force report does not address how to enable Indian companies to handle market their products worldwide. Maybe this is best left to the innovativeness of the industry itself. Another problem that Indian software houses face is the large-scale migration of software manpower. With the dollar continually appreciating vis-a-vis rupee, the continued large-scale shortage of software professionals in the West, and the large income difference for these professionals in India and the West, a large section of Indian software personnel stay in India only until they get trained and an opportunity to move abroad. Most software companies have unsuccessfully tried restrictions such as bonds to stem this outflow, but have slowly come to live with this phenomenon. Making the work here more challenging, providing better remuneration, and more recently awarding them a part of the company's stock, to give a sense of ownership, are what the companies are offering. The IT task force moves in the right direction by calling for liberalising of the stock ownership rules for employees. The task force is however silent on the larger issues such as the impact that the increasing earnings for professionals in the software sector, and the growing difference between incomes in this sector and other sectors of the Indian economy, will have on Indian polity and society. 3.2 IT in India What is normally regarded as Indias greatest weakness the large population can also be a strength. While the growing population has created a lot of problems in the country, it also represents a largepotential market. This potential can be converted into reality only if the products are affordable to a large section of its people, and this is indeed a difficult task since most people of the country can afford very little. This is one of the reasons why India is yet to be converted into a large internal market, in which Indian companies can learn and consolidate. Without this, it is difficult to compete in the world market. After a new product is introduced in the West, it is continuously innovated upon to bring down the price till it is widely affordable. Beyond this, there is little motivation to further bring down the price. All innovations thereafter are geared to improve features while the price is kept constant. Unfortunately, this affordable price level in the West is affordable to only the top few percent of the population in a country like India. To make it affordable to a larger cross-section, innovations different from those pursued in the West are required. The price of the product has to be brought down to a third or a fourth (in the process changing the shape of the product itself) of its price in the West to make it affordable to even 20% of the Indian population. However, 20% of the Indian population is a large market, equal in size to the West, and can fuel unprecedented growth. This approach is daunting, since it requires us to take a few steps ahead of what is normally done in the West. This approach alone can make IT (or for that matter most other products or services) available to wide sections of people in the country. Without such steps, "IT for all" will remain a slogan used as a cover for policies to enrich the lives of a few. It is not that IT has made no difference so far in India. Introduction of IT has made some noticeable differences railway ticket bookings is probably the most visible example. Even small shops and offices are now installing computers with some home-grown software. There are many small
software companies located in garages. They have served the Indian market, and have gradually grown. However, these companies have rarely anything in common with the large software export houses. The software houses, with the high salaries paid to its employees, have largely priced themselves out of the Indian market. Expenditure in dollar terms cannot be matched by income in rupees. This is one of the greatest dilemmas facing the Indian IT industry. Unfortunately, the IT task force has not addressed this issue. IT Education The goals that the IT task force has set for itself would require a very large pool of trained personnel. The task force seems to be seized of the matter as it aims to bring computers and Internet to every school and setup SMART schools and institutes in the area of Telecommunications and Computer Science. The Indian Institutes of Technology and deemed institutes and universities have indeed provided good training in these areas. The persons graduating from these institutes are recognized as amongst the best in the world. The numbers are not too small (though they can be increased to an extent) and these people could provide the required technological leadership to the country if only they decided to stay in the country. Merely increasing the number trained in such institutions, would not necessarily increase the availability of such manpower in India. Similarly a large number of private engineering institutions and computer training centres have come up which train a very large number of personnel in the country. The process is continuing, and little needs to be done today to enhance this pace. The problem is that such training is often limited in scope and these institutions churn out what can be described as technician level people. Even though such training is useful, what is needed is a large body of middle-level people with good knowledge and skills. There is little effort in this direction and it is left for the persons to train themselves on the job to reach the next level. This is largely inadequate. If the targets set by the IT task force are to become a reality, one needs to concentrate on improving the middle-level colleges throughout the country. Good knowledge and skills; rather than a degree or certificate, have to be the hallmark. Hopefully, the IT institutions being setup in different states will do exactly this. Continuing education courses, open universities and Internet based education, will also hopefully focus on this.
IT has also brought about Cost Effectiveness by helping to computerize business processes thus streamlining business to make them extremely cost effective money making machines. This in turn increases productivity which ultimately gives rise to profits that means better pay and less strenuous working conditions. IT has also helped to bridge the cultural gap by helping people from different cultures to communicate with one another, and allow for the exchange of views and ideas, thus increasing awareness and reducing prejudice. IT has also made it possible for businesses to be open 24 x7 all over the globe. This means that a business can be open anytime anywhere, making purchases from different countries easier and more convenient. It also means that you can have your goods delivered right to your doorstep with having to move a single muscle. Lastly, IT has helped in the creation of new and interesting jobs like Computer programming, Systems analyzing, Hardware and Software developing and Web designing. Now that business has become very competitive, there is the need to use IT to remain ahead and in business. Good IT use can get you ahead of competitors. In terms of Functionality and Flexibility, internally IT can help improve infrastructure performance thus increasing functionality and the range of options that can be pursued. Externally, it can help create an efficient, flexible online/offline platform for doing business with customers, suppliers and partners. In commerce, IT can internally help improve internal operating efficiency and quality. Externally, it can help streamline and integrate channels to market, create new channels and integrate multiple online/offline channels. IT can also help improve the performance of knowledge workers and enhance organizational learning. Externally, it can improve the performance of knowledge workers in customer, supplier and partner organizations; add information value to existing products and services; create new information-based products and services. IT can also help attract and retain top talent; increase satisfaction, engagement and loyalty; create a culture of involvement, motivation, trust and shared purpose. Externally, can help attract and retain high quality customers, suppliers, partners and investors; increase external stakeholders satisfaction, engagement and loyalty.
BUSINESS Retail consumer e-commerce continues to grow at double-digit rates. The online demographics of shoppers continues to broaden. Online sites continue to strengthen profitability by refining their business models and leveraging the capabilities of the Internet. The first wave of e-commerce transformed the business world of books, music, and air travel. In the second wave, eight new industries are facing a similar transformation: telephones, movies, television, jewelry, real estate, hotels, bill payments, and software. The breadth of e-commerce offerings grows, especially in travel, information clearinghouses, entertainment, retail apparel, appliances, and home furnishings. Small businesses and entrepreneurs continue to flood into the e-commerce marketplace, often riding on the infrastructures created by industry giants such as Amazon, eBay, and Overture. Brand extension through the Internet grows as large firms such as Sears, J.C.Penney, L.L. Bean, and Wal-Mart pursue integrated, multi-channel bricks-and-clicks strategies.
B2B supply chain transactions and collaborative commerce continue to strengthen and grow beyond the $1.5 trillion mark. TECHNOLOGY Wireless Internet connections (Wi-Fi, Wi-Max, and 3G telephone) grow rapidly. Podcasting takes off as a new media format for distribution of radio and user generated commentary. The Internet broadband foundation becomes stronger in households and businesses. Bandwidth prices fall as telecommunications companies re-capitalize their debts. RSS (Really Simple Syndication) grows to become a major new form of user -controlled information distribution that rivals e-mail in some applications. Computing and networking component prices continue to fall dramatically. New Internet-based models of computing such as .NET and Web services expand B2B opportunities. SOCIETY Self-publishing (user-generated content) and syndication in the form of blogs, wikis and social networks grow to form an entirely new self-publishing forum. Newspapers and other traditional media adopt online, interactive models. Conflicts over copyright management and control grow in significance. Over half the Internet user population (about 80 million adults) join a social group on the Internet. Taxation of Internet sales becomes more widespread and accepted by large online merchants. Controversy over content regulation and controls increases.
Surveillance of Internet communications grows in significance. Concerns over commercial and governmental privacy invasion grow. Internet fraud and abuse occurrences increase. First Amendment rights of free speech and association on the Internet are challenged. Spam grows despite new laws and promised technology fixes. Invasion of personal privacy on the Web expands as marketers find new was to track users.