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