The
growth of Indian software industry, in my attitude, clearly explains
much of the theory of comparative advantage. The first part, in
assumption, India has been able to specialize in products (software
application) that produces more efficiently and at the same
time, are the software exporting countries were producing less
efficiently.(For example, the United States, Europe, India and
Australia).
From
the viewpoint of developed countries (outsourced) to import goods or
software modules, which produces less efficiently. Therefore, this
theory focuses primarily on the development of global economy where
all countries can benefit commercially.
As
a relatively underprivileged country as a nation that is able to
build a greater presence in a high-tech industry such as computer
software. In just over a decade, but the Indian software industry
's surprised skeptics and emerged from obscurity to a major force
in the global software industry.
Between
1991-92 and 1996-97, sales of software companies in India grew by 53%
compound interest per annum. Sector's turnover in 1991-92 amounted to
$ 388 million. By the year 1996-1997 turnover was around 1.8 billion
euros. In 1997, more than 760 software companies in India, employing
160 000 software engineers,
the third largest in the world of talent.
Most
of the growth of Indian Software
Development Company was based on a contract or project-based work
for foreign clients. Several companies for example to keep the
applications to its customers, or to convert the code to move the
software from one platform to another.
More
and more Indian companies are also involved in major development
projects for foreign clients. Examples of TCS, the largest Indian
software company, are the alliance, Ernst & Young, TCS to
develop and maintain custom software for the Ernst & Young's
global clients.
TCS
also has a development alliance with Microsoft when the company
developed a paperless depository by the National Indian stock market
is based on the operating system Microsoft
Windows NT technology and SQL Server database.
The
Indian software industry has occurred despite a poor IT
infrastructure. The installed base of personal computers was only 1.8
million in 1997 in India, a nation of 1 billion people.
In
explaining success of your business software industry in India point
to a number of factors. Although the general level of education in
India is low, the middle class in India is very important for
education and higher education institutions are world class.
Another
great advantage of an international perspective, is that English is
the working language in most of the middle class in India - a relic
of the days as the British Raj. Then there is the salary.
American
software engineers are increasingly scarce, and the basic salary has
been driven up to the highest of any professional group in the
country, where the entry-level programmers earn $ 70,000 a year. At
entry level programmer in India instead of from about $ 5,000 a year,
which are very low by international standards but high by Indian
standards?
Another
factor in the hands of India is that the satellite has eliminated the
distance barrier to business customers from abroad because the
software is nothing more than the current ones and zeros, can be
delivered in terms of cost and low speed of light around the world.
In the world, instant messaging, the geographical position of India
gives an edge zone.
Indian
companies have been able to tap the growing international market for
remote maintenance. Engineers India can correct errors in the
software, updates to data
processing systems or overnight while users in Western companies
have fallen asleep.
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