Growth of Information Technology in India: A Boon or a Curse?

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The growth of information technology in India has it's advantages and disadvantages. This presentation outlines some of the aspect of economic growth and certain challenges faced by the nation.

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Growth of Information Technology in India: A Boon or a Curse?

  1. 1. Growth ofInformation Technologyin IndiaA Boon or a Curse?Munindra Khaund
  2. 2. Agenda Introduction Composition Transformations Challenges
  3. 3. India: Composition* Population of over 1.15 billion  Population growth rate - 1.4%  Population in urban areas - 29%  Life expectancy at birth - 64 years  Infant mortality (per 1000 live births) - 52 Slum population  2001 census - 52.4 million  2011 expectations - 93.06 million* The World Factbook: India. The Central Intelligence Agency. November 2010.** India’s urban awakening: Building inclusive cities, sustaining economic growth. McKinsey Global Institute. April 2010.
  4. 4. India: Composition Hindus - 80%  Buddhist - 1% Muslims - 14%  Bahá’is, Jews, Parsis - 1% Christian - 3%  Ethnic groups - 2000+ Sikh - 2% Tibet - 77,000 Sri Lanka - 70,000 Afghanistan - 10,000
  5. 5. India: Composition 14 official languages  Several dialects Literacy Rate  Male - 74%  Female - 48%
  6. 6. India: Composition GDP $4 trillion  Services - 55% [banking, tourism, BPO]  Industry - 28% [textiles, chemicals, steel]  Agriculture - 17% [rice, wheat, oilseed] Unemployment rate - 10.7% Inflation rate - 10.7%
  7. 7. Technology Transformation Services Mainframe WWW Desktop
  8. 8. Reforms: 1991 and Beyond State-controlled to free-market economy Trade liberalization Import controls Currency devaluation Tax rate decreases
  9. 9. Reform - Results* Privatization of public sector industries Growth of business services - information technology, information technology services, business process outsourcing Foreign Direct Investment* Economic Reforms in India since 1991: Has Gradualism Worked? Montek S. Ahluwalia. 2002.* India Trying to Liberalise: Economic Reforms Since 1991. Charan D. Wadhva. 2004.
  10. 10. Favorable for IT English-speaking workforce High-end telecom and infrastructure? 24x7 Policy environment Tax structure
  11. 11. e-Government Computer-aided registration of land deeds and stamp duties reducing reliance on brokers and possibilities for corruption Computerization of rural local government offices for delivery of statutory certificates of identity and landholdings Computerized checkpoints for local entry taxes Consolidated bill payment under 17 different categories in one place, from electricity to university fees E-mail requests for repairs to basic rural infrastructure
  12. 12. IT Sectors Software and Services*  Rise in value of exports:  1999-2000: $3.4 billion  2004-2005: $12 billion  FY 2011: $56-57 billion Business Process Outsourcing* Information Technology Professionals and the New-Rich Middle Class in Chennai. C.J. Fuller and Haripriya Narasimhan. London School of Economics. 2007.
  13. 13. BPO Services Customer service Technical support services Insurance processing Data processing Medical transcription and billing
  14. 14. BPO Revenue Aggregates $73.1 billion in 2009-’10  Growth rate of over 5% Revenues may reach $225 billion in 2020* Department of Information Technology, Annual Report 2009-10.
  15. 15. BPO Human Resource Challenges Brand equity, training, benchmark Why they join  Why they leave  Lack of a better job  Growth opportunities  Lack of education  Policies and  Work environment procedures  Flexibility of time  Personal life  Physical strains* BPO Industry in India: A Report. BPO India. 2004.
  16. 16. Concerns: International Ex-Gov. Ted Strickland enforcing a ban on outsourcing of all IT and back-office projects to India by government departments Petition launched in Britain to stop details of patients in Derbyshire being sent to India for medical transcription “STOP Outsourcing everything to India & China !! Support AMERICAN jobs !”
  17. 17. Concerns: National Lack of civil engineers* Shortage of teachers Decline of the Humanities and Fine Arts Deficient in the required technical skills, fluency in English or ability to work in a team, or deliver basic oral presentations* A High-Tech Titan Plagued by Potholes. Vikas Bajaj. The New York Times. August 25, 2010.
  18. 18. Challenges Population growth Education Human trafficking Environment Technology
  19. 19. Challenges: Population Growth Will add 400 million by 2050* 456 million live below poverty line [$1.25 a day; World Bank poverty line] Third of the global poor in India* The last taboo: What unites the Vatican, lefties, conservatives, environmentalists, and scientists in a conspiracy of silence? Julia Whitty. Mother Jones. June 2010.
  20. 20. Challenges: Education Compulsory primary and secondary education for all?* Literacy rates  Bihar - 60% male & 33% female; 4 children/woman  Kerala - 94% male & 88% female; 1.9 children/woman* India: Labour to unlock. Financial Times. Amy Kazmin. October 4, 2010.
  21. 21. Challenges: Human Trafficking Source, transit, and destination country Men, women, children Forced labor, commercial and sexual exploitation  11-14 yr old works ~8 hrs/day  Street value of $9,000  Middle East* Smuggling of Migrants from India to Europe and in particular to UK: A Study of Tamil Nadu. K.C. Saha. United Nations Office of Drugs and Crime. 2009.
  22. 22. Challenges: Environment* Emissions Land degradation Pollutions of fresh water resources Deforestation + Desertification Urbanization* Role of multi-tiered governance for enhancing adaptive capacities to climate variability and changeNair S. The Energy and Resource Institute. 2010.
  23. 23. Challenges: Technology Ultrasound  Sex selection  Female infanticide  1000 males to 850 females* GIS* Gender Imbalance: The Perils in China and India. Munindra Khaund. 2008.
  24. 24. Potential for Innovation* Competition is vital In-service training Information flow Early-stage funding* Unleashing India’s Innovation: Towards Sustainable and Inclusive Growth. Mark A. Dutz. International Bank for Reconstruction and Development. 2007.
  25. 25. Leitmotif Secular  Sovereign, socialist, secular, democratic Diverse  Customs, traditions, languages, food ______
  26. 26. Thank you @mkhaund

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