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l
Availability of intelligent, motivated and educated young people with potential to
develop into system analysts.
l
Existence of potentially large and wide internal market which can lead to manifold
demand for software.
l
There are large number of sectors of the Indian economy where computerization
must be unshaken, for better utilization of the economy’s resources. These
include banking, transportation etc. These are virgin territories. The domestic
software industry can undertake the massive challenge of computerization of
the railways reservation system by the public sector company CMC is a good example
of such automation.
l
The export industry in India has performed exceptionally well and the growth rate has
been much higher than in the domestic software industry. Not only that, a number
of Indian software companies have completed turnkey projects abroad and gained
invaluable technical and project management skills. When these companies get
involved in domestic software development, they can draw upon their project expertise
and undertake large projects in India as well.
l
The Indian government has announced major liberalization efforts in the IT
sector through its policies. These will help multinational and other foreign
companies to set up operations in India. Already, companies like IBM, Motorola,
Novell, Hughes, Hewlett Packard, Oracle and DEC have entered the Indian
market. The trend will provide the Indian companies healthy exposure to new
technologies.
l
Application packages are emerging as a major growth area. Sales of indigenous
packages overtook sales of imported software in 1991-92. Also the growth rate
in this area was in consonance with the global trends where it is expected that
the packaged software segment would grow from 15 percent of total spending in
1990
to 20 percent by 1995.
l
Indian software companies are becoming increasingly quality conscious and
are trying to keep pace with the international technology trends.
Unfortunately, alongside these areas of strength, India also has many constraints
on the domestic software industry side. The software industry has been bogged
down by an underdeveloped domestic market; the inadequacy of finance
mechanisms; underutilization of computer capabilities; the inadequacy of data
