What is the projected growth of the IT sector in India for the next upcoming decade? Furthermore, is the current BPO industry in India very strong? Interesting to see the development and social transformation aspect of India.
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What is the projected growth of the IT sector in India for the next upcoming decade? Furthermore, is the current BPO industry in India very strong? Interesting to see the development and social transformation aspect of India.
This topic is very close to my heart.
A very good question, but unfortunately a hard one to answer. It actually depends. From the way things are going though, it looks quite good. I see Indian software industry move up the value chain big time. This is evident from the fantastic number of really good startups that are dotting Bangalore, Pune and Hyderabad. Provided this trend continues, I see MASSIVE growth. I've been working in IT for almost 7 years now and I can tell you that good money comes from innovation. BPO and software services is not a sustainable model. It helped us to get a much needed foothold but it is time we moved on. Indian startup scene in the coming years is poised to be one of the best in the world, at par with Israel and even coming close to the Silicon Valley in terms of impact. I dare say I would happily leave my job here in the States to go back to a good desi startup.
IT has indeed brought order of magnitude more social transformation in the past 20 years than the government could manage in the 50 years prior to that. When I was still in India, many of my colleagues were from poor rural backgrounds. They god their degrees, aspired to be a part of the boom, worked hard and were the first ones from their families to earn so much money. From rural poverty to upper middle class and beyond in less than a generation.
What is the projected growth of the IT sector in India for the next upcoming decade? Furthermore, is the current BPO industry in India very strong? Interesting to see the development and social transformation aspect of India.
I see Indian software industry move up the value chain big time. This is evident from the fantastic number of really good startups that are dotting Bangalore, Pune and Hyderabad.
Provided this trend continues, I see MASSIVE growth. I've been working in IT for almost 7 years now and I can tell you that good money comes from innovation. BPO and software services is not a sustainable model. It helped us to get a much needed foothold but it is time we moved on.
Indian startup scene in the coming years is poised to be one of the best in the world, at par with Israel and even coming close to the Silicon Valley in terms of impact. I dare say I would happily leave my job here in the States to go back to a good desi startup.
IT has indeed brought order of magnitude more social transformation in the past 20 years than the government could manage in the 50 years prior to that. When I was still in India, many of my colleagues were from poor rural backgrounds. They god their degrees, aspired to be a part of the boom, worked hard and were the first ones from their families to earn so much money. From rural poverty to upper middle class and beyond in less than a generation.
IT is the only industry which one can even make handsome bugs with out much investments,space,labour problems or impact to environment.
No one can predict more than a decade target, but IT industry in India is predicted to be a 300 billion dollar by 2020.
Interim Budget: $15 bn to be added to forex reserves this year
Bangalore R&D unit key to us; has filed 800-plus patents: Cisco
NEW DELHI: India plays a key role in the development of new products and solutions at networking giant Cisco with its Bangalore unit filing over 800 patents till date, a senior executive said.
The US-based firm spent about USD 6.3 billion or 13.4 per cent of FY2014 revenues on R&D globally.
"From being a centre for cost advantage to a skill pool, India has today become a centre of innovation for us. The impact that India is creating is phenomenal and every solution that we have, India has an imprint on it," Cisco Executive Vice President and Chief Development Officer Pankaj Patel told PTI.
Apart from the US and India, there is not a single country where there is investment across all the technology bets that Cisco has, he added.
Patel is responsible for leading the development and execution of Cisco's USD 6.3 billion technology portfolio across a global team of more than 25,000 employees.
Globally, the over USD 47 billion firm has filed over 19,000 patents and has 170 labs.
The Indian unit started in 1996 with 10 employees and about 12 patents were filed in 1998. Today, we have over 11,000 employees of which 8,000 are engineers and about 830 patents filed.
"New products are being conceptualised, designed and architected out of India. I cannot stress enough the importance that India has for us," he said.
Some of Cisco's prominent R&D units are located at San Jose, Boston, Raleigh, China, Durham and Tel Aviv.
"We had decided to design products in India for footprint, energy consumption and scalability. The ASR 901 was the first Cisco product to be entirely developed out of India and now, it is a huge hit in developed countries as well," Patel said.
The success of the ASR 901 has certainly strengthened the strong recognition Cisco has for the huge potential for innovation from India, he added.
"As we like to say at Cisco, we came to India for the costs, we stayed for the quality, we invested for innovation, and now we are creating a new industry," he said.
Asked if the company will increase its R&D headcount in India, Patel declined to comment on specific numbers but said "growth in India is not going to taper for headcount".
The networking giant invests as much as USD 1.7 billion annually in its operations in India across areas like R&D and employee training.
In 2005, Cisco had announced USD 1 billion investment into India as direct investments into R&D, leasing and finance, sales and support and venture capital, highlighting the importance of the Indian market.
Then in 2007, the company launched its Globalisation Centre East in Bangalore, as a second headquarters for Cisco, to explore how to globalise talent, innovation and growth.
It also announced an additional USD 100 million venture capital funding to expand investments in early-stage Indian companies.
Cisco Chairman & CEO John Chambers had also said the company is betting big on India. Although the company gets about 2 per cent of its over USD 48 billion global revenues from India, it is confident of this share growing to 5 per cent in the next five years.
Last year, the venture capital arm of Cisco -- Cisco Investments -- had announced an additional allocation of USD USD 40 million to fund early-stage firms in India under the 'India Innovation theme'.
Bangalore R&D unit key to us; has filed 800-plus patents: Cisco - Economic Times
In your opinion is the contemporary Indian software industry transformed, by foreign direct investment and the transfer of technology from the advanced world, or has a process of innovation and research and development has occurred homogeneously within the population? From my recollection only Bangalore was unequivocally observed as a IT hub in India, by the western hemisphere 10 years ago. However, evidently this phenomena has changed drastically, because now Pune and Hyderabad are considered rival competitors of Bangalore.
You advocated the conjecture, that the BPO and software services model is not sustainable in the long term. Can this be attributed to high costs and fierce competition from the Philippines, who are culturally more attuned to America and has therefore forced Indian companies to reevaluate there business model?
Personally, I have no experience of the IT sector, however is the margin of profit and pay in the Indian start up scene, attractive enough to lure companies to invest in them and therefore retain the entrepreneurial spirit of young graduates to reside in India, rather than shifting to Silicon Valley.
The greatest benefit of the IT boom in India can be summarized by this paragraph and its mindbogglingly to witness the transformation of ordinary lives in one single generation. The only comparable example is China, when it decided to initiate the open door policy in 1978.
Good question. As a start, it was mostly driven by technological transfer especially from the USA. Innovation has indeed been kickstarted locally but it is still in its nascent stages and needs a good amount of encouragement. Also, Pune is indeed considered to be a worthy rival to Bangalore. Hyderabad sort of lost its way but it still had a very good IT ecosystem.
Yes that is indeed a good contributor to it. This is because BPO has nothing terribly innovative about it and in many cases those are dead end jobs with little or no future beyond a certain point. It is not that Philippines is more attuned to American culture, it is because Indian BPO services have become more expensive. 10 years down the line Philippines will become more expensive and they will transfer to other low cost centers. Anything edge based on cost alone is not sustainable. It adds little value beyond that.
Thank you, for providing a comprehensive analysis on the IT sector of India and its future prospects. It can be presumed upon the notion, that government policy has contributed to the attainment of technological transfer of expertise, because taxes became low and the regulatory control of issuing licences was loosened. However, it can also be examined that Indian educational institutions have played a pivotal role, as the computer engineering courses being offered in there campuses were on par with the western world. The private sector has pushed the boundaries of gaining success, something Pakistan and its businessmen should learn from. Does China in your opinion pose some form of challenge to India on the IT front and in particular from the city of Hangzhou?
The arguments used in your posts are valid, however I thought BPO business contributed a significant amount of revenue to the exchequer, roughly in the figure of $30 billion in the next 5 years. If BPO services have become relatively expensive, then why don't Indian companies relocate there offices to other provincial areas around the country, where labour cost is much cheaper? I guess its difficult to retain workers in a company, who feel that no career path is becoming available towards them.