Software Export

This paper analyses India s potential, performance, and problems in software export over the years. The results of the study show that software export has been growing con~istently at a higher rate of 50-60 per cent in the 1990s. Growing respect for Indian software industry in international market, continued rise in offshore services, entry into new markets. Y2K data conversion business and of course various steps taken by Government to promote export by simplifying procedures, tax concessions. by establishing software technology parks, and by initiating more liberal foreign investment policies, are considered to be the major factors that gave a fillip to the phenomenal growth of Indian software export. A close look at the destinations of the software export shows that USA continues to top the list followed by Europe, South East Asia, Japan and others. The study finds the important comparative advantage that India possesses over other countries are: worlds second largest pool of scientific manpower with English speaking skill, low cost of labour. investment friendly economic climate and policy, locational time difference with the Western world, etc. The major problems affecting Indian software export are: shortage of competent professionals. inadequate telecommunication facilities and other infrastructural bottelnecks, weak domestic market. etc. Some of the few suggestions that the present study makes are: reorienting and restructuring the educational systems in tune with the current needs of the economy, conducting a national level test in line with the engineering or medical entrance after 10+2 to draw the best talents to IT field, introduction of computers at school (Ind college levels, providing easy access to loans to IT students, providing high quality infrastructure and communication facilities , attraction of more private participation, both domestic and foreign in IT industry.