"The Indian Government has given unstinting support to the telecom sector, which is a critical infrastructure for economic growth of the country and has a direct multiplier effect on the economic growth."
"The Indian IT industry has now reached
a stage of maturity where it can be a very reliable and safe partner for
meeting the requirement of our global partners. While we are yet very
cost competitive, the Indian it industry has gone beyond that and is providing
unique scenario to
"India today is one of our top priorities in Asia Pacific, and we remain fully committed to service in the market."
"Realization of the importance of information security is increasing, in the case of new players in particular. If India is somehow viewed as a a place where information is not secure, then that would reverse the outsourcing trend for India."
"India’s positioning as the primary global offshoring destination (along with China) will ensure that the country’s economy rapidly grows and its people will see the benefits."
"The story of Indian companies needs to be told i.e. how they are creating local jobs and opportunities. How they are allowing US companies to stay in business and be competitive. How productive increases in the US have to do with the Indian IT industry too."
"The prospects (of India and Australia forging an alliance to emerge as IT super power in the Asia-Pacific region) are very positive."
"India will continue to expand its market dominance in this (BPO) field, yet to prevent political backlash it will be imperative for India to provide U.S. companies greater market access, to reduce its trade deficit, and to continue to buy American, which would include meaningful defense cooperation."
Technology is an important tool for fostering development. Global communications
and the Internet are key engines of economic growth."
"One of the key areas of cooperation under the ASEAN-India dialogue relations is science and technology with focus on IT. We have been working on a number of projects in the area of e-learning and information security system."
"Indian IT sector is very much part of our work to reduce the digital divide that we are working on."
"The CECA will in all probability smoothen some of these problems but a more proactive approach to attracting investments into much needed IT infrastructure can be adopted."
"Indian IT is strong and well-known. Our expectation is that India would relocate its Assembly Line (hardware, software and semi-conductor) industries into Cambodia. If this is possible Cambodia would be able to provide jobs to its people as well as to boost exporting."
1. Seven million broad band subscribers by 2007
2. 20 million broadband and 40 million Internet subscribers by 2010, whichtranslates into penetration levels of 1.70 per cent and 3.40 per cent respectively
3. Broadband network of 10 million subscribers by 2010 and 35 million subscribers by 2020 in urban India across homes, enterprises and public kiosks.
4. Achieve broadband coverage by providing access to at least 50 per cent of the rural population by 2010 and 100 per cent by 2020 through rural broadband kiosks.
5. Make appropriate and locally relevant e-education, e-Governance, entertainment and e-commerce services and employment opportunities available through broadband connectivity to all cities, towns and villages in India.
IT-ITES industry has recorded 33 per cent growth in exports, clocking revenues of $ 23.6 billion in FY 2005-06, as compared with export revenues of $ 17.7 billion in fiscal 2004-05. Fiscal 2005-06 also saw the overall Indian IT-ITES industry (including domestic market) growing by 31 per cent registering revenues of $ 29.6 billion, up from $ 22.5 billion in 2004-05. This is revealed in a NASSCOM survey.
Of the total IT-ITES exports in FY 2005-06, IT software and services grew by 33 per cent, registering revenues of $ 13.3 billion; while ITES-BPO segment clocked revenues of $ 6.2 billion, recording a growth of 37 per cent. Engineering services and product exports grew from $ 3.14 billion in FY 04-05 to $ 4 billion in FY 05-06. Domestic market clocked revenues of $ 6 billion in FY 04-05 from $ 4.8 billion in FY 05-06.
Domestic market growth forecast at 20 per cent with a significant upside potential in e-governance and high growth sectors e.g. retail, healthcare etc. The National e-Governance Plan (NeGP) covers 26 Mission Mode Projects with 8 support components to be implemented at Central, state and local government levels at a total cost of over Rs 23,000 crore in a phased manner spreading over five years. Major government development programmes like NREG scheme will be implemented on an e-governance format. States have the flexibility to add up to 5 state-specific projects.
Besides, a Rs 3334-crore State Wide Area Networks (SWANs) scheme is being implemented in different states and Union Territories. The Private-Public Partnership in establishing 100,000 Internet and broadband-enabled Common Service Centres for 600,000 villages in all the 6000 blocks in the country is slated for completion by 2007.
India: Fort Knox of Data Security?
growth and success of the Indian ITES BPO sector is due to a combination
of strengths India possesses, of which high security standards and world
class practices are a key part. Recognition of this comes from various
independent studies. For example, the A. T. Kearney Global Services Location
Index 2005 ranks India highest in a detailed analysis comparing 40 sourcing
destinations across the world. The fact that India is very secure, from
a data protection viewpoint, has also been confirmed by independent surveys
by various credible organizations, including the Financial Services Authority
and the Banking Code Standards Board, both of the UK.
“Yet, owing to the critical and sensitive nature of work being outsourced to Indian companies, concern from customers about the protection of their data is but natural. The Indian IT-BPO industry has been able to adequately meet all such worries and has remained ahead of the curve in ensuring data security.
”Indian IT and ITES-BPO companies consider fool-proof security to be an indispensable element of global service delivery, and lay special emphasis on ensuring that their security policies and practices minimize any form of information risk. We aim to be the global outsourcing hub for the world and understand the associated responsibility from a data security perspective.
“….if national comparisons are to be made at all, the Indian
IT industry is certainly far ahead. Research conducted in 2005 found many
more security breaches in UK and the US than in India. In the past 18
months, according to reports by privacy watch-groups, the incidents of
identity theft in the US alone have been 148, affecting nearly 94 million
identities. In the UK, the Home Office estimates that identity thefts
result in losses of over a billion pounds, and a quarter of all UK citizens
have either been affected by ID theft or know someone who has been.
“A Self Regulatory Organisation (SRO) for the IT-ITES industry is in the works, to help further upgrade data protection and security practices. Another important initiative now actively underway is the National Skills Registry. Launched in January 2006, NSR has already registered 25000 employees, and 24 companies - accounting for approximately 30% of industry’s total workforce.
“On the policy side, the industry has closely engaged with the Government to suggest amendments to the IT Act 2000, which will further strengthen the legal framework, taking note of the evolving nature of technology and also of cyber crime. We expect the amendments to be tabled in the forthcoming session of Parliament.
“However, effective enforcement of these laws is most critical, which requires well trained police and enforcement authority officials, well versed with technology. Even the best law will be a dead letter if not executed well. As part of the ‘4E Framework’, NASSCOM has conducted training in cyber crime handling for over 1800 police officials, and organised workshops and seminars for judiciary, law makers and other In India, we are determined to keep all procedures under review in order to stay ahead of criminals no matter where in the world they may be based. Security is and will remain our number one priority. We want India to be the “Fort Knox” for data."
(Extracts from article “Fort Knox of Data Security?” written by Kiran Karnik, President, NASSCOM as updated on 16th
Creating a robust talent pipeline
The Indian ITES-BPO industry has been on a high–growth path and has clocked revenues of $ 6.3 billion in fiscal 2005-06. According to the NASSCOM-McKinsey Report 2005, India will face a potential shortage of semi-skilled workforce in the next decade or so, particular in ITES-BPO industry. Currently, only about 25% of technical graduates and 10-15% of general college graduates are suitable for employment in the offshore IT and BPO industries, respectively. As countries from around the world enter the offshore market; it is necessary that India must improve the quality and skills of its workforce.
NASSCOM has introduced the NASSCOM Assessment of Competence (NAC) course. The pilot programme was launched in August 2005. NASSCOM and Hewitt, with active participation of ITES-BPO industry players, designed NAC, a national assessment and certification program, which is aimed at creating a robust and continuous pipeline of talent by transforming the "trainable" workforce into an "employable workforce”.
NAC aims to address the possible talent shortage by creating a robust and continuous pipeline of talent through a standard assessment and certification. This will provide insights into the real training and development needs of talent and hence help companies, Governments and Universities develop customized talent development initiatives and programs.
“One of our key focus areas during the last year has been to build NAC as an industry certification that integrates industry requirements with university and college courses, on the lines of SAT, GMAT and GRE examinations”, says Karnik. “NASSCOM’s proactive initiatives like NAC and IT Workforce Development, combined with educational institutions’ and state government’s efforts, to create employment will definitely help build the necessary workforce for the requirement of the IT-BPO industry in a long term perspective,” he hopes.
Indian government has raised the ceiling of foreign direct investment (FDI) in telecom sector to 74 percent from original 49 percent. Indian shareholding will not be less than 26 percent. As per the revised guidelines on FDI, all telecom firms are now allowed to appoint foreign CEOs, subject to clearance of the Home Ministry and will have access to networks from remote locations.
Foreign investments will include investment by Foreign Institutional Investors, Non-resident Indians, Foreign Currency Convertible Bonds, American Depository receipts, Global depository Receipts and Convertible Preference Shares (CPS).
Updated on May 29, 2007
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