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INTRODUCTION
What is IT????
As defined by INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA (ITAA) IT is the study, design, development, implementation, support or management of computer based information system particularly software's applications & computer hardware
WHAT IS ITES??
ITES is INFORMATION TECHNOLOGY ENABLE SERVICES. It is defined as outsourcing of processes that can be enabled with IT & covers diverse areas like FINANCE, HR , ADMINISTRATION.... etc.
IT Industry in India
Indias information and technology services date back in 1967 with the establishment of TCS of TATA groups in Mumbai. IT includes hardware and software which helps us to change, secure, send, receive, save and process the information. Information Technology (IT) industry in India is one of the fastest growing industries. Indian IT industry has built up valuable brand equity for itself in the global markets. The industry information comprising of IT & IT enabled services has been fueling Indian economic growth and also influencing livelihood to different multifaced parameters like diversity, standard of life ,employment & profession directly or indirectly. Government policy towards IT sector changed when Rajiv Gandhi became Prime Minister in 1984 .
IT software and services in India accounted for 2.4% of the countrys GDP and 20.4% of exports in 2002-2003.
This share is projected to increase to 7% of Indias GDP and 35 per cent of total exports by 2008.
India offers a distinct set of advantages , which make it a preferred destination for ITES :
more than a decade of experience in this area fluency in the English language lower real estate costs and administrative expenses in comparison with developed countries large and rapidly growing pool of qualified IT-enabled services providers, who collectively cover a wide range of services, with different levels of complexity and value addition. lower manpower costs (30-40% of equivalent costs in the US and UK) Advantage of time zone differences and availability of 24x7 services supportive government policy infrastructure locating ITES. high quality offerings
Policy Framework
The Government of India recognises ITES as a major thrust area. Some of the key incentives to the industry are: 100 % Foreign Direct Investment (FDI) permitted in call centres Sharing of bandwidth for disaster recovery and mission critical applications between multiple entities Call centre approval is not required to be customer-based but specific to a place of presence (PoP), or by installed capacity at the place of termination. This not only assists in reducing the lead-time for implementation of programmes for new customers but also adds to the savings in costs and time that can be channelised for more productive usage
Approved Internet and IPLC connectivity on the same LAN Allowed connectivity of a LAN in an international call centre to a domestic ISP. This enables a call center operator to choose his service provider. Competition is expected to drive down prices while offering a higher service-reliability value proposition Duty-free imports of capital goods permitted for BPO companies (under the Export Promotion of Capital Goods scheme The Government of India has allowed total income tax exemption on export of IT enabled outsourcing services (Sections 10A/10B of the Income Tax Act).
These cover a wide range of services such as customer interaction services, BPO/Back office operations, medical transcription, legal databases, digital content development, engineering and design services, support centres, payroll/HR services, web-site services, data digitisation/GIS and online education
INDIAN IT ADVANTAGE
Low-cost-to-high quality 2nd largest English Speaking manpower resources in the world Supportive Government Policies Adaptability to new technologies Geographical Advantage
Importance of IT sector
Planning and Management in IT E-Business/E-Commerce and the Internet Knowledge Management Mobile Commerce and Technology The management of information systems Information technology/information systems and sustainability Social aspects of information systems Web site development and evaluation Usefulness of Bar codes in identification and fast processing Customer relationship management
IT IN GLOBAL COMPETITIVENESS
According to global competitiveness report of the forum, which asserts information technology as a new source of competitiveness, there are at least three aspects to this. - E-mail - Internet - E-commerce
- E-mail: has greatly expanded the possibilities for interpersonal inter-firm and international communication - Internet : it has allowed for much more extensive and rapid discrimination of information - Emerging area of e- commerce offers a potentially huge increase in the customer base for companies and huge savings in marketing costs and search costs in finding low cost suppliers.
Another study by consulting and advisory services for cyber media research suggests that the PC market in india would have witnessed sales of 11.15 Million units in the 2011.
Internet retailing is also emerging as anentirely new avenue to be explored. According to estimates made by an industrial body,indias online retailing industry is anticipated to surge to Rs 70 billions by 2015 from Rs 20 billions as broadband is becoming increasingly accessible and internet penetration is increasing.
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