The Indian software industry has a very promising future. It has the potential to alter the future course of the Indian economy. Naturally, such an industry should strive to gain a major global presence.But, how large is the growth potential in the Indian software sector? According to the National Association of Software and Service Companies (Nasscom), the Indian software industry should grow to US $87 billion by 2008. Attaining that growth calls for sharp focus.
With technology changing so fast, Indian software professionals will have to hone their skills and enter new growth areas such as IT-enabled services, e-commerce and application service providers.
Indian software companies will have to move up the value chain fast and offer niche products and services. They should also make efforts to get into other promising domain-specific areas which include the health and insurance sectors.
Consider only those countries with the ability to produce original technology have been leaders in information technology. So, India should strive to develop its own home-made information technology versions.
Meanwhile, there are certain irritants that need to be tackled on a war footing. These are: high telecom tariffs, poor infrastructure and inadequate bandwidth. And skilled software manpower could become a cause for concern a couple of years down the line. So, creating a manpower pool needs attention.
By 2008, the Indian software industry can produce as many as ten multinationals. Since size is an important issue, mergers, acquisitions and strategic alliances will have to be encouraged. The government should put in place a friendly system to facilitate the ongoing consolidation process. Emerging and under-penetrated markets should be tapped with vigour.
The time and platform is just right for the Indian software industry to spread its wings far and wide. Despite numerous roadblocks, the industry has been able to come this far. That itself is a testimony to the industry's inherent strengths. Therefore, given the right structure, the Indian software industry can live up to Nasscom's expectations. If the Indian software industry were to miss the target of US $87 billion by 2008, there may not be another chance.