Problems of I T Industry

At present there are a number of challenges that are facing the information technology industry of India. One of the major challenges for the Indian information technology industry was to keep maintaining its excellent performance standards. The experts are however of the opinion that there are certain things that need to be done in order to make sure that India can maintain its status as one of the leading information technology destinations of the world. The first step that needs to be taken is to create an environment for innovation that could be carried for a long time. The innovation needs to be done in three areas that are connected to the information technology industry of India such as business models, ecosystems and knowledge. The information technology sector of India also has to spread the range of its activities and also look at the opportunities in other countries. The improvement however, also needs to be qualitative rather than just being quantitative. The skill level of the information technology professionals is one area that needs improvement and presents a considerable amount of challenge before the Indian information technology industry. The Indian information technology industry also needs to co-ordinate with the academic circles as well as other industries in India for better performance and improved productivity. The experts are of the opinion that the business process outsourcing service providers in India need to change their operations to a way that is more oriented to the knowledge process outsourcing. One of the most important crises facing the Indian information technology industry concerns the human resources aspect. The problems with outsourcing in countries like the United States of America are posing problems for the Indian information technology industry as well. In the recent times a bill has been passed in the state of New Jersey that allows only the citizens or legal non-Americans to be given contracts. This legislation has also affected some other states like Missouri, Connecticut, Wisconsin and Maryland. These states are also supposed to be considering these laws and their implementation. This is supposed to have an adverse effect on the outsourcing that is the source upon which the information technology industry of India thrives. The information technology professionals who aim at working in the country are also likely to be hindered by the legislation as a significant amount of these professionals have been going to work in the USA for a long time.

Thinking about the problems faced by the IT industry, the following are noteworthy: 1. The stifling innovation: IT almost by definition is about innovation; the only constant in this industry is change. The industry is worth more than USD 2.5 trillion annually worldwide and yet faces constant attempts to thwart its success. Whether its the lies of the entertainment industry or the cynical people designing business strategies around patents rather than actual innovation (or even work) or companies spreading fear, uncertainty and doubt about its competitors or companies pursuing increasingly spurious lawsuits to protect their businesses, it has the same effect. Comparatively tiny vested interests are threatening the continued growth and prosperity of the vast majority, until we stop seeing this rubbish as good business and recognise it for what it is - a shakedown, everyones future is at risk, that is. 2. The obsession with technologies and methodologies over results: The fundamental disconnect between a technologist and a business person often narrows down to focus. We geeks love our gadgets. A Southern Baptist preacher aint got nothin against a hardcore geek evangelising about his favourite technology. Heres a hard fact for many IT people: The right technology is the one that gets the job done. The average business person has no interest in the programming language, operating system, hardware or methodology that you believe is the one true path to the Promised Land. Thats if youre lucky - in my experience, theres nothing worse than a business person who has arbitrarily decided that one technology is better than another. If youre convinced that your favourite technology and methodology is the best, prove it with results, not rhetoric. Religious arguments are bad enough when theyre about religion; elevating technology to the level of religion is counter-productive and downright scary. 3. Arrogance: Heres a tip - if youre trying to explain technology to someone and they dont seem to understand, treating them like theyre stupid isnt going to help anyone, you, least of all. It doesnt matter if they really are stupid; the IT industrys reputation for arrogance has been earned by the frequent display of grossly unjustified arrogance by many IT practitioners. And if you think arrogance makes you strong, just stay the hell away from me. Besides making an average (non-arrogant) geeks life miserable, quite a few major companies have been destroyed due in no small part to arrogance.

Napster probably should have been a huge commercial success; it could have opened doors for huge new revenue streams for record companies and artists. But Shawn Fannings extraordinary arrogance turned him into his greatest potential customers mortal enemy. Its true that the record companies seem to be controlled by greedy old guys who run their business like the mafia. They might have gone after Napster if Fanning had been as sweet as pie but his attitude in the early days had pretty much sealed his fate. By the time he had been sufficiently coached to act like a grownup, it was too late. 4. Hype over substance: Theres no getting around it - IT is exciting. The rate of change and the explosion in computing power have opened so many possibilities; its dizzying, sometimes literally. It seems that irrational exuberance is an occupational hazard in IT. Sure, its a great way to get media attention and investment capital but it seriously hurts your credibility if you cant deliver on the hyperbole. Have you ever noticed that over-hyped world-changing technologies almost always fail utterly? (the Segway springs to mind). And the truly life-changing things seem to sneak up on us. In retrospect, we can see how great they are but they werent heralded by trumpets from the heavens. The iPod was unveiled as a great product but I dont recall outlandish claims about how Apple would sell millions, create an entire new market and essentially rejuvenate the entire company with a mere portable music player. If Jobs had introduced the iPod by predicting the sales figures Apple would actually achieve in the years since, he would have become a public laughing stock. 5. Constantly focusing on the now: While IT development is arguably about creating the future, Im always astonished at how many colossal blunders are perpetrated by thinking only about the present. The Y2K issue was created by programmers deliberately introducing an appalling limitation into systems essentially because it wasnt a problem for them - someone would fix it in the future. Arguably, this turned out to be true but this issue is a perfect illustration of how short-sighted thinking in IT could have long term consequences. This can also be seen in how people tend to discuss the current stars in the IT environment at any given time. The number of discussions running rampant at the moment about the disproportionate power of Digg is utterly ridiculous. Digg came out of literally nothing a very short time ago. The very fact it exists and has achieved prominence so quickly is evidence

that Digg is likely to become irrelevant in the long term. There is every possibility that a different and better service will eclipse Digg in the future. But far too often, analysis of this topic seems to be based on the idea that the status quo of today will never change. Because Digg (or YouTube or MySpace or even Google) is so dominant today, they will always be dominant and its pointless to even try to compete with them. This simply isnt true but you hear it again and again. For each of the above examples it would be easy to cite examples of companies and individuals who have triumphed over these threats (and hopefully people will provide some in the comments). The fact that these threats can be successfully fought doesnt invalidate this article and thats the whole point of the article. Knowing what issues you face is the first step in dealing with them (thats the analyst in me talking). Ignoring threats or worse still, being totally ignorant of the threats you face is playing the Russian Roulette. And sooner or later youre going to spin up the wrong chamber. Problem Statement The problems facing SMLGs (Small Medium-size Local Governance) in their efforts to implement ITs are extensive and varied. One of the ultimate and overriding problems is that there is no model for these localities to follow or consult that is tailored to their specialized issues and needs. Organizations are each subtly different even from those in the same arena. What a model provides is a framework designed to address the issues and needs of a particular process which are related across organizations of comparable circumstance. In essence, a model provides an alternative to reinventing the wheel every time an implementation project is undertaken. A number of IT implementation models exist in the private sector, and some of them are quite advanced and certainly have substantial information which could be translated to the public sector. The problem with appropriating one of these models from outside the public sector is that it may or may not fit the area in question. Any number of issues and needs may be different and therefore must be approached in a different way. While it is certainly problematic and often counterproductive to create a generalized model for all types of organizations across one particular sector, it is doubly unwise to generalize a model for use in a different sector entirely. The time is right for the development of an IT implementation model for SMLGs. These localities have reached a point where information technology use has become widespread and integral to almost all operations. IT knowledge levels are increasing within these

organizations, and the demand for efficient and effective use of ITs is high. SMLGs are more frequently making use of multiple ITs in their operations. Hardware and software costs have decreased substantially, making it easier and more feasible for SMLGs to afford superior ITs in greater quantity. This dissertation focuses on smaller to medium sized localities and the myriad of issues they are facing with regard to IT implementation. Local governments in particular are having significant problems with regard to the effective implementation of information technologies in their organizations. The problems they experience are different from those of organizations within the federal and state governments as well as those in private organizations and as such their dilemmas must be addressed from a view specific to them. At the local government level, the specifics of how we will function in the information age and what direction we will take have become increasingly important. At this time we are at the crossroads of information technologiesso many choices, so little money, so much confusion. Over the last decade and a half, competition and innovation have led to a development that is somewhat unique to the area of information technology. IT has improved exponentially while at the same time prices for technologies have continued to drop. This fortunate chain of events has put many of the more recent technological innovations within the fiscal grasp of local governmenta situation that was unheard of 20 years ago. Unfortunately, some of the same factors that have made this particular situation possible have also produced an even greater problemthe rapidly changing nature of the technologies themselves. Information technologies become affordable quickly but the rapidity of change in the environment keeps small and medium sized local governments a step behind. In essence, they can afford really great obsolete ITs. In light of this and a number of other situations in the information technology arena, all organizations who make use of ITs must pay special attention to the planning, acquisition, and implementation of these technologies. They must be acutely aware of the copious number of issues which play a part in the ability of the organization to effectively implement ITs. This study adheres to the Information Resource Management (IRM) and Management information Systems (MIS) schools of thought, which provide a management philosophy purporting that information is a crucial asset in the ultimate success of an organization and as such should be managed rigorously. Beginning in the 1960s a discipline has grown, primarily out of the field of business administration, that seeks to deal with the growth, care, and feeding (management) of information technologies. This field is most commonly

referred to as MIS or management information systems. MIS focuses on the automation of many business activities, especially those of a clerical nature, in an attempt to provide better methods of planning, reporting, and operations control. Recently MIS (often referred to today as information systems or IS) has sought to provide approaches to deal with the ever changing problems and situations surrounding all aspects of the management of information. To manage aggressively, SMLGs must have the tools and knowledge with which to address or meet their specific needs appropriately in regard to information technology implementation. The view of this study is that to do this effectively an in-depth knowledge of the issues affecting IT implementation must be reviewed with regard to local government organizations (especially those smaller to medium sized localities). In most cases, IT implementation problems can be viewed in layers corresponding to each stage in the overall process. One thing that all of the layers appear to have in common is that they are all comprised of multiple issues that create or aggravate the problem. This particular study will focus on these issues in order to determine which are the most problematic for SMLGs with regard to the implementation of ITs. Furthermore, these issues will be examined from the standpoint of their relationships and impacts. In addition it will explore how the issues are perceived by the executives who must manage them in their attempts to lead their organizations to effective implementation of ITs. Ultimately, the information gathered here should prove useful to the development of an effective and usable IT implementation model for SMLGs. Description of the Issues Organizational and management process issues encompass those factors that affect control over planning, procurement, and implementation of information technologies. In general these kinds of issues provide a window for viewing a variety of organizational operations with regard to IT. At the outset it appeared that the broad umbrellas of management processes and organizational processes were ideal for categorization of the issues to be discussed. However, after careful review of the literature and through an initial series of interviews, it became clear that more specific categorizations were necessary as a basis for better understanding of the issues. To that end, this study will make use of the following issue types: management process issues, organizational environment issues, leadership issues, technical systems issues, and personnel issues. Those characterized as management process issues speak to the functional operations of organizations, such as: budgeting,

personnel, and general management. Issues characterized as organizational environment will be broader, addressing factors which are less tangible and more difficult to define such as: organizational culture, change, and behavior. Leadership issues refer to those areas which require the interaction and direction of the organization executive such as: interdepartmental coordination and administrative support. Technical systems issues are primarily those related to the hardware and software considerations of information technologies. Finally, personnel issues are those issues surrounding each individual in the organization such as: individual expertise levels, staffing levels, and resistance to change.

Problems of I T in Jharkhand The key problems faced by I T in Jharkhand are Jharkhand is still to complete the basic requirements in terms of information technology. The Government of Indias National e-Governance Plan has a clear vision: to deliver, and make accessible all Government, Social and Private Sector services in the areas of agriculture, health, education, entertainment, FMCG products, banking and financial services, utility payments, etc. to the citizens at an affordable cost. With this intent, the Common Services Centres (CSCs) were conceptualized in May 2006, as the front end service delivery outlets enabling smooth and transparent governance at the village level. But till date state is not able to get a reliable service provider for Common Services Centres (CSCs.). A major problem is the stabilization of power which is lacking in the state. While alternate models exist, they are not very cheap. The state has dearth in terms of quality penetration of web. Another issue is that of a stabilized postal service model which needs to be rolled out for financial transactions. Utilization of funds in the state has been very miniscule. Lack of flow of fund to SCAs has crippled their ability to maintain standards of CSCs. Last mile connectivity is an area of concern with pace of BSNL connectivity being very poor. The state is also looking at other option like VSAT. We have done a lot of work towards implementation of IT in the last 6-7 years, but the desired requirement is not in accordance with the actual deployment. Jharkhand is still to complete the basic requirements in terms of information technology. For example, we have started CSCs in Jharkhand, also known as Pragya Kendras and in many places it has started well but even now we are not able to get a reliable service provider, which is a big challenge. A major problem is the stabilization of power which is lacking in the state. While alternate models exist, they are not very cheap. The Government is trying to address this major concern, but till such time it is a big challenge. Another issue in the state is quality penetration of web; we are not able to provide reliable internet service. Another issue is that of a stabilized postal service model which needs to be rolled out for financial transactions.

Availability of useful and useable content is the biggest challenge to the effective use of ICT in governance and development. Even for transaction-based services, content is important. For example if in a particular service all the content is in English then it is difficult for a large number of people to use it. The e-District project has been launched in Jharkhand where all the certificates are being given online. Applications are collected at the Panchayat level and they are collectively transmitted to the relevant authorities. The certificates are then prepared with digital signatures and sent back to the Panchayats and whoever has applied for a certificate can then collect it from there. The application has been developed as a bilingual one and till now we have issued around 5,000 certificates. And the point to note here is that most of the certificates have been issued in Hindi. This is something that we have to keep in mind any application has to be in local language for it to be truly effective. The other issue that we faced is of connectivity. For any project involving online transactions, good and reliable connectivity is one of the prerequisites for success. Ensuring connectivity in rural areas often remains a challenge. Another issue is of capacity building of the village level or Panchayat level workers. When we started training workshops for the project, it has found that 80 percent of them had not even seen a computer in their life. These are challenges one will face in any large-scale project and it is important that steps to handle these are built into the programme design. Air services are essential in IT business to facilitate travel of foreign experts, funding agencies, clients and cargo movement. There are no air services for all the major cities of the country and aboard, it is a big problem for growth of IT in Jharkhand. Law and Order is vital issue for growth any industry in the state. A Naxal problem is big problems of Jharkhand. Since its formation on November 15, 2000, the state shares the pain of Naxalism and its anti developmental activities with its sister state Bihar. 18 out of 24 districts are affected by naxalites. The growth of IT projects in the state has been affected due to increasing naxal insurgency and frequent political instability. Frequent naxal attacks causing damages to property and human beings have put a sense of insecurity among big IT companies to put their projects in the state. Naxalite activities have made land acquisition more difficult. IT industrys growth is dependent on in-interrupted power supply to the units. However, the state faces acute power problems. Only 45% of the villages of the state have been electrified. Remote areas of the state are yet to be connected with good road communication. Only the district towns are connected by good roads like NH etc. Others are yet to have good communication system, which is also hindrance in growth of IT

sector. IT MNCs are also reluctant to put up their projects in the state as there is acute problem of making available land for setting up IT projects due to obstruction some time by political parties / MCC / villagers and other vested interests. The bundh culture is very prominent among the various political parties / associations /MCC activists and this has impact on the IT and other industries.