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Introduction -The Global IT People Crunch:

India, the world's largest democracy and home to nearly one billion people, is quietly but quickly emerging as a leader in the field of software engineering and web-based services. India's own competitive advantage in the software business is well known: cost-effectiveness, world-class quality, high reliability, and rapid delivery, all of it powered by state-of-the-art technologies. It is a nation where more and more multinational companies are outsourcing their software requirements to retain competitive advantage. (source from NASSCOM.org).

A survey conducted by NASSCOM indicated the followings statistics and trends with respect to the Indian software industry in terms of exports and the domestic market:

Exports

• Indian Software exports in 1999-2000, grossed revenues of Rs. 17,150 crore and registered a growth rate of 56.8% in rupee terms and 51% in dollar terms over 1998-99 performance.

• During the year, more than 185 companies out of the Fortune 500 companies outsourced their software requirements to India.
• India exported software to 95 countries around the world, with almost 62% of exports to North America.

• In 1999-2000, 37 software companies have exported more than Rs. 100 crore of software. During the same period, more than 60 companies exported more than Rs. 50 crore of software; about 180 companies have exported more than Rs. 10 crore worth of software; and more than 500 companies exported software more than Rs. 1 crore. This testified profound proliferation of the industry.

• In 1999-2000, the number of software exporters increased to a record number of 1250 companies.

• During 2000-01, the number of software exporting companies are expected to exceed 1600.

• VSNL and STP continued to play a very vital role for offshore software development. The number of dedicated high speed (64 kbps, 2Mbps and above) datacom links currently being used by software exporting companies are more than 1200 circuits. In 1992, only 10 such links were being used.

• Offshore software development exceeded 42% of total software exports. (In 1991-92, off-shore software development contributed only 5% of the software exports)

• Satyam Infoway Limited was the first Indian Internet based company to be listed on the NASDAQ Stock Market.

• TCS was the number one exporting company in terms of revenues, with export revenues of Rs 1,820 crore.

• The top 25 exporters accounted for almost 61% share of the I.T. software and services exports revenues in 1999-2000.

• During the year, number of quality certified software companies from India increased to over 170; Fifteen Indian companies now have the unique distinction of an SEI-CMM Level 5 certification. (Only 23 companies worldwide have achieved level 5 certification)

DOMESTIC MARKET

• Software revenue from the Indian domestic market accounted for Rs. 7200 crore in 1999-2000; domestic market grew at 45% over 1998-99 revenues.

• The indigenous software companies in the domestic market launched 149 new software products and upgrades.

• 131 new software products and upgrades were launched by the overseas companies in the Indian domestic market.

• Y2K Software solutions in the domestic market fetched Rs 410 crore.

• Sales of products and packages for the year amounted to revenue of Rs. 2962 crore, which is approximately 41% of the total domestic software market.

• ERP segment grew by 23%; E-commerce software solutions grew by 200%; CAD/CAM market grew by 41%; Banking software grew by 70%.

• Software purchases by the SOHO market witnessed an all time high growth rate of 70%".

• Total volume of E-Commerce transactions in India were estimated at Rs. 450 crore in 1999-2000. Out of this volume, about Rs. 50 crore were contributed by retail internet or Business-to-Consumer transactions, and about Rs. 400 crore were contributed by Business-to-Business transactions.

• There were more than 7,70,000 internet subscribers in the country as on 31st March 2000. The actual number of users who have ready access to internet in India are more than 3.2 million. The internet subscribers are expected to increase to 1.6 million by March 2001.

• Piracy levels were brought down to 59% during the year. However, losses due to software piracy amounted to more than Rs. 900 crore.

• Government eliminated import duty on IT software.

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