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Our Software Technology Parks are performing exceedingly well, contributing over
65
percent of software exports from the country today. Here too, the Government’s
helping hand has been visible. State governments are also getting into the IT act.
Most states across the country have an IT framework in place and are stretching
themselves to prove that they mean business when it comes to software.
On the telecom infrastructure front too, we can expect to see a lot of action.
NASSCOM has launched what it calls “Operation Bandwidth”, an attempt to get
the Government to provide at least 300 Gbps of Internet bandwidth by 2005.
Anticipating a 1000-fold increase in bandwidth demand over the next five years,
NASSCOM is stating that India could lose business worth as much as $ 22.5 billion
if the bandwidth issue is not resolved. IT-enabled services will also receive a shot
in the arm once infrastructure improves and we are able to alter some laws governing
connectivity. Such services, including call centers, medical transcription, and other
support options, will not only generate massive employment opportunities across
India, they will also help rope in India’s educated “woman power” that will be able
to work from home by pressing the right keys.
Today, we are talking about churning out around 75,000 computing graduates every
year. A million more are added by the private training institutes. However, the
number of graduates has to be urgently beefed up to over 200,000 over the next
three to five years if we have to grab the emerging manpower opportunity. India
has a plan for upgrading our RECs to the levels of IITs and expanding the number of
IITs to one in every state.
Another recent development which is expected to provide a further fillip to the
sector is the arrival of venture capital lists into the country. The dot com revolution in
India owes its momentum to the vital financial life blood provided by angel investors
and venture capitalists. Nasscom is persuading the Government to provide greater
concessions to venture capitalists to further spur the market.
Mergers and acquisitions are going to be the other big software market movers
and shakers. Analysts state that dot coms should increase market capitalization and
buy brick and mortar companies (something like the AOL-Time Warner merger,
where AOL initiated the takeover).The Government’s role needs to be that facilitator.
We also need to take this revolution to the grass-roots level. Let us use the gains
made by the software industry to spur 100 percent literacy, more employment,
entrepreneurship and growth of the Indian economy.
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