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INDIA On the national level, India seeks to become an information technology superpower and one of the largest generators and exporters of software in the world within the next seven or eight years (by 2008). In 1990, its IT industries generated a mere $150 million in software and computer-related services. By 1999, that figure had jumped to $4 billion, with the IT sector employing more than 280,000 Indians with salaries nearly twice the national average. India also has the second largest pool of trained scientists in the world (Mann). To meet the 2008 deadline, the National Task Force on IT and Software Development was established by the Prime Minister to form a strategy. Sudendra Kulkarni, an The government’s Ministry of Information Technology’s (MIT) has the same mission -- to make India an IT superpower. At the core of it’s strategy is the development and growth of technology parks for both software and hardware. The Software Technology Park of India (STPI) is an autonomous organization of the MIT. STPI Earth Stations are located around the country, as can be seen in the image at right. The STPI Web site provides extensive information on the strategy of the STPI, which includes government policies on: Infrastructure: Intellectual Property Stimulation of Production: Foreign Direct Investment (FDI) India has attracted U.S. companies such as Motorola, IBM, Apple, Oracle and Texas Instruments. The U.S. and it’s companies are India’s primary investors. The government’s technology park efforts are in two categories: Software Technology Park Examples of incentive policies include:
Electronics Hardware Technology Park An EHTP may be set up by the central or state governments, public or private sector or any combination thereof. Interestingly, an EHTP unit may be an individual unit by itself or a unit located in an area designated as an EHTP. BANGALORE No analysis of India would be complete without a look at Bangalore -- the “Silicon Valley of the East”. As an unplanned area of high-tech innovation, the region’s skilled English-speaking workers, low wages, a relaxed atmosphere,and government support are among the factors that lured foreign companies to the region. Companies like Intel, Novell, Philips, Siemens, Sony, and Texas Instruments have subsidiaries in Bangalore (Patni). Since 1991, India’s liberalization efforts removed many barriers to foreign investment by multinational corporations. The Indian government early on recognized the software industry as a major area of growth and implemented income-tax exemptions on profits from software exports. Indian programmers are famous in the industry for being fluent in English and for possessing superior mathematical and technical skills. For example, graduates of the prestigious Indian Institutes ofTechnology (IIT) are selected by companies such as Phillips and Microsoft for special technical training at their headquarters. Bangalore happened to be the right place at the right time for India. Low wages for skilled English-speaking workers created a significant cost advantage for many high-tech companies, which was the initial attraction. Indian workers could do comparable work to U.S. workers at a much cheaper rate. Also, domestic Bangalore-based high-tech companies had the ability to rapidly adopt (and copy) new technologies. However, Bangalore is running into problems. Costs are skyrocketing all over the region. The workers are seeking higher wages and the infrastructure issues of the area, such as road and transport issues, are producing problems. Another problem area is the high illiteracy level and competition from other Indian states, such as its neighbor, Andhra Pradesh. Despite the challenges, Bangalore is expected to continue its growth and be the dominant player in India’s high-tech future. HITEC City Nara Chandrababu Naidu, the chief minister of Andhra Pradesh state, has led the vision for the state’s capital, Hyderabad, to become a cyber-metropolis by 2020. It’s mission is to provide world class infrastructure facilities for the IT industry under one roof. HITEC City, located near Hyderabad in Andhra Pradesh, is located on 151 acres with 5 million square feet of office space. It is being built in a phased manner at a cost of USD $375 million with 50% on developed space (i.e ready to occupy and multi-tenanted buildings) and 50% as independent campuses, built to customer specification. It already houses such tenants as Microsoft Inc. and Oracle Inc. Naidu's government has borrowed heavily to fund its economic reforms and technology strategy. From 1994 to 1997, total outstanding debt and the fiscal deficit of the state quadrupled, according to the World Bank. It offers two buildings: Cyber Towers, which is completed and 100% occupied, and Cyber Gateway, which is currently being built. In infrastructure, the park’s Web site promises uninterrupted power and exemption from statutory power cuts. The state has built roads, public works, and public services (bus and fire). It also has a hotel, a shopping complex, and a medical center. Housing for workers is being developed. In technology, it offers high speed connection to the Internet through fiber optic cables with communication links to the world. It has telephony, video conferencing, and satellite service. These service are provided by government agencies, such as STPI. In workforce, twenty-three percent of Indian software professionals, whether working in India or overseas, come from Andhra Pradesh (Chanda). Despite all of it’s plans and progress, India still has a few problems. An article in the Economist reveals that several Indian biotech firms that export their products are wary of selling them at home for fear of piracy. Uniterrupted power is still a dream. Illiteracy is still a problem at 50% or more and quality training of the workforce has diminished. However, India has opened itself to change and has established an infrastructure using technology parks to bring about that much desired change. Links to Other Technology Sites in India National Association of Software and Service Companies (NASSCOM)
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