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The new challenges in IT

Over the past decade, the information technology sector has recorded unparalleled growth in India, carving a niche for itself and its talent pool in the global market. The figures speak but a part of the story: that the growth in terms of exports and employment generation has contributed significantly to the GDP. Equally important is the qualitative change it has brought about in the Indian industrial environment in terms of efficiency, governance, and confidence to enter global markets. The industry is now facing major challenges in the context of global recession, and the industry’s apex body, NASSCOM, has drawn up a road map for the next decade. From an export market of $47 billion, it hopes to touch $175 billion by 2020. But, to achieve that goal, the industry cannot just confine itself to core industries or the countries they are operating in. It needs to work on new segments of the economy such as small and medium enterprises in its traditional markets, and seek business more actively in emerging markets. It is not without significance that multinational corporations have moved to establish research and development centres in Asia to cater to the emerging markets.

NASSCOM still looks to governments, both at the Centre and in the States, to reorient the industry. Already, it is viewed as a pampered sector that is given liberal tax exemptions, government-acquired land, and relaxation in building rules. The industry needs to break free from this image by contributing more to the domestic economy and rejuvenating the country’s ageing education system. The government of course has to expand and improve the reach of the Internet and ensure a reliable communication network so that the industry can move into Tier 2 and Tier 3 towns. For its part, the industry can, and should, do a lot for upgrading the educational standards through interaction with premier institutes of learning. The recently launched Information and Communication Technology Academy in Tamil Nadu, a joint venture by government and industry, is a laudable initiative. So is the proposal to start more IITs and IIMs across the country, the benefits of which will take some years to accrue. In the interim, the industry can design and run, in collaboration with professional institutes, orientation programmes for making engineering and other graduates employable immediately, obviating the need for extensive training.

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