The information technology (IT) industry has increased its contribution to the countrys GDP from 1.2 percent in 1997-98 to 5.2 percent in 2006-07, according to a Nasscom-Deloitte study.
The report, titled Indian IT Industry: Impacting the Economy and Society, further says that export earnings in 2007-08 will hit $40 billion, a growth of 36 percent. Meanwhile, direct employment is expected to be 2 million in 2007-08, growing at a CAGR of 26 percent in the last decade.
Though the percentage remains as 5.2%, IT definitely created a huge perception of India playing global role in real big way. Its not that, Indian lacked capabilities in the past. It was always matter of right opportunity. IT proved as a stepping stone, which other sectors are clearing leveraging on. More-over, IT success washed away the perception of Indian lacking capabilities to deliver on global front. Other sectors (Banking, Medical, Hospitality etc) started making footprints on global contribution now. India is now being recognized as important hub of global economy, critical mass of distributed organizations.
Coming back to IT, We definitely are Numero-uno when it comes to IT outsourcing. Time has come when we need to focus on as an IPR hub, rather than just being outsourcing provider. Last 2-3 years has definitely seen a shift by large & medium sized IT companies towards that direction. Still, it’s a very small-shift in volume, revenue, products which surfaced from Indian IT companies, rather just early break-through towards the larger goals. Two companies which have done phenomenally well are Subex and i-Flex. ‘i-Flex’ being acquired by Oracle definitely certifies that Indian product vendors can deliver. Its only matter of focus and right direction. Time has come for IT entrepreneurs to shift gear, rather change gear from low cost service-provider to high-end product innovators. If we look into Indian IT Goliaths (TCS, Infy, Wipro), it is happening. Focus is on innovation. In fact wipro has marked the statement of purpose on Innovation itself. India should be regarded and respected as country, which can continuously innovate and produce with quality focus at macro level.
Hopefully next GOOGLE shall emerge from India, don’t mind if the name is ‘Om Shanti Om’ 😉