it industry and porter's diamond model
DESCRIPTION
IT industry and Porter's diamond modelTRANSCRIPT
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World IT Spending 4 Trillion Level
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Began with Indians returning from higher education, IT training, and often work experience
development from subcontracting -> joint venture, e-commerce and web related products and services
from pure exporting -> creating a domestic industry -> clustering
Supporting factors: English language skills as the programming language; time difference; low cost programmers
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Porters Diamond Critics Factor of production: skills and knowledge of software programmers
and IT business managers initially not home-grown Demand condition: no local demand related and supporting industries: highly underdeveloped (telecoms
and computing, national communications infrastructure) firm strategy, structure and rivalry: process improvement Indian firms
moved up the value chain (competitive advantage from just cost to a combination of cost quality and high end R&D)
chance: English language skills as the programming language; time difference; low cost programmers
government support: the development of software technology parks, promotion of technical training, subsidies to ICT infrastructure
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The size of this sector has increased at a rate of 35% per year during the last 10 years.
The share of information technology industry is 7 percent of gross domestic product (GDP) in Indian economy according to NASSCOM (www.imdr.edu; www.nasscom.org.)
[Dubey and Garg, 2014]
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5 Indian IT Companies in the top 100Global leaders in 2010
More than 26 Indian companies appear in top 100 Global Sourcing List (2013)
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Promising forecast
2050 US, China and India top 3 GDP growth Nations
2025 Leaders share from IT would be 6-10% of GDP
2025 India GDP expected to be at 10 Trillion USD
Domestic industry: Create 2025 Trillion Dollar Blue Print for Indian IT - 10000 start ups
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Dubey and Garg (2014) CONTRIBUTION OF INFORMATION TECHNOLOGY AND GROWTH OF INDIAN ECONOMY, INFORMATION TECHNOLOGY AND GROWTH OF INDIAN ECONOMY, 2(4): p.49-53