India's IT success can be 'replicated' in other countries

By Jacqueline Emigh | Published March 27, 2008, 6:41 PM

India's "amazing" use of information technology outsourcing to jump-start its entire economy is a model that can also work elsewhere in the world, according to technologists from India, who spoke this week at a conference at the UN.

UNITED NATIONS (BetaNews) - "Excellencies, ladies and gentlemen, and colleagues," said one of the speakers from India, Prahbat Sharma, addressing investors and other attendees at a conference called "United Nations Meets Web 2.0 and ICT Entrepreneurs."

"India's story in IT was somewhat unexpected," Sharma said. "It is an amazing story."

In 2008, the IT industry continued $50 billion to India's economy, an amount expected to double to more than $100 billion by 2110, said the next speaker, Lalit Dhingra, president of NIIT (National Institute of Information Technology).

"But it was not even half [of $50 billion] in 2002," Dhingra added.

Along the way, India's IT boomed has spawned phenomental growth in other areas of the economy, too, including transportation, logistics, finance, and retail. A few years ago, for example, India had only a handful of airlines. "Now, we have 16 of them," he said.

"This has been a very successful model for us so far, [and] it can be replicated in a lot of other countries," according to the president of NIIT, an IT training and software development firm in the private sector.

What's responsible for India's economic success story? "Excellent IT training," Dhingra said.

In most sections of the country, computer skills are now part of the public school curriculum from grades one through twelve. But beyond that, high school graduates can receive specialized IT training through organizations such as NIIT.

With NIIT, he said, India has adapted the Western model of hospital/medical school to the IT field. In fact, many NIIT students are hired directly by NIIT's labs upon graduation, whereas others ger jobs with private IT firms, as well as in the IT departments of companies in other industries.

India now has 200 companies with ISO 9001 ratings, and 15 of these are at level 5, the top ranking. NIIT training has grown so ubiquitous in India that "NIIT is now a generic term, in much the same way that a photocopy is called a 'Xerox,'" Sharma told the audience.

Going to school to study IT is now referred to as "doing a NIIT," elaborated Sharma, explaining that "NIIT" is pronounced like "knit."

NIIT has already worked on replicating the model the countries of Bangladesh and China, according to Dhingra. One country in Latin America showed strong interest a few years ago in following India's approach. "But nobody took responsibility [for the effort]." Dhingra said.

Yet Dhingra acknowledged that India's turnaround is still "fueled by outsourcing" IT services for companies in North America and Europe.

Dhingra also admitted that India's model faces some challenges. For one thing, demand is so strong for IT talent in India that job attrition is rampant, especially at senior levels. In addition, although lower costs were one of the factors that initially attracted the IT outsourcing market to India, IT salaries in India are continuing to grow fast.

Under questioning from a panel of investors, also on hand at the conference, Dhingra also said that in some parts of India -- particularly very rural areas -- education in computer skills isn't keeping pace yet with the rest of the nation.

"Electricity is not yet available in some of the distant areas," according to Dhingra. "But soon, all of the schools will have computers."

Comments

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Amazing, my ass! Instead of riding the coattails of avaricious American corporate executives, eager to take advantage of human trafficking/dumping, and unfair price inequalities, thereby destroying the middle class that surrounded them in their comfortable childhoods, try making up your own, native computer industry.

If India has such smart IT geniuses, why not try your hand at designing a completely brand new microprocessor architecture, design and build an entire computer from scratch and sell it, invent a computer language, hell, just invent a standard the whole world follows.

Hmmm, I thought not.

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u have to start somewhere. easier this way

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"If India has such smart IT geniuses, why not try your hand at designing a completely brand new microprocessor architecture, design and build an entire computer from scratch and sell it, invent a computer language, hell, just invent a standard the whole world follows.
"

Intel has a fabrication plant in India..That apart, we have our own microprocessor manufacturers like ITTIAM. India conceptualized Simputer, and is also in the process of producing the world's cheapest computer. Java - a computer language with a standard the world follows was developed by Sun which was founded by Vinod Khosla.. :)

All I would say is, research before you sh!t in full public view..

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Khosla is only one of 4 founders of SUN. The first machine they sold was designed by Andy Bechtolsheim. BTW, Jave was not invented by Khosla, but by Gosling.

Intel has fabs in a lot of places. Their locations being more a function of stable geology and pliant local government, not innate IT capability.

a Simputer runs Linux, an OS where most of the development occurs in Western Europe and the US. Besides, just 4000 units were sold. Depending on sales to local governmental units for success is a poor move. Simputer needs to win on its merits rather than being the home boy entry.

I can make a quip about research too.

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Well, let's hope they don't use virus invasions as a basic means to increase hardware sales....

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Their Success (For the most part) is based on CHEAP Labor.

I have worked with Indian Companies (TRICOM, TRRS) and have seen how they work things. Like their country, places are VERY overcrowded and their Server / PC layout for the most part is archaic and reminds you of a 15 Year olds Room... ON A BAD DAY!

Overall, all these outsourced countries are only successful for one (1) simple reason:

CHEAP LABOR

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Very true.

But its still a $50 billion industry, which apparently can be emulated in other country's.

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Yes India has made great strides but that was because of U.S. involvement. Cisco and other companies are primarily responsible for the IT revolution in India. As with some Apple products, "Designed in America but made somewhere else".

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US companies definitely helped but Infosys, Tata/TCS, Wipro, HCL Infosystems, Reliance all boosted the Indian economy in their own right.

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These companies would not exist if it weren't for the investments made by U.S. companies and Indian students coming to the U.S. to get a quality education which is a joke in India.

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I agree! Education apart from some colleges are really a big joke in India. What about the inflation in India?

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what a load of communist BS!! yeah if you wipe out the middle class as you are in Amerika, you can achieve these kinds of goals. with lowend IT and Tech support. Anyone who has seen the documentaries on India's IT growth has also seen that within 100 yards of the Tech Center, there are slums with the poor living in less than 3rd world conditions.

I suppose it won't be not too long that the UN will have actual monkeys trained in the IT and Tech fields.. Slightly geneticly modified so they can communicate like humans, but other than that they don't require things like fancy cars or houses to keep them satisfied..

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Where there is a will there is a way, and the ideology in India is to work hard, get an education and a good job. The general youth of today, at least here in the UK, is not in the same league.

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I don't think you've had the pleasure of dealing with useless tech support, or anything computer related from India. There may be a will, but there's no way this is approaching anything like an experience anyone in their right mind would want to repeat in a hurry.

As for England, half the youth there seem to be from that region, so what are you talking about?

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The desire to succeed is so strong they will eventually get where they want to be. As Western countries they are simply losing it. From 2050 its going to be ASIAN era. And Mandarin going to replace English as Lingua-franca of the world. The western countries depended on others countries to supplement their need for brainy workers. So if western countries if they what to keep the edge or stay on par, u better buck up.

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LOL this is the funniest stuff I've read in a long time...thanks! :)

Hey I've also heard, in 2098, that dinosaurs are coming back. Also there's a rumour floating around that around 2801 betanews will be hosted from another galaxy on a planet called tzatzar, and it will be hosted on an organic organism which scans the universe and automatically updates your brain with glactic news. I, for one, am very excited about this bright future that we have in store for us!!

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"I don't think you've had the pleasure of dealing with useless tech support,"

I thought we were talking about a $50 Billion tech industry as a whole ? Sure the phone support from a flowchart method, using cheap & non technical person is going to be poor, but this weeds out the numpties with silly faults from the real stuff the IT techs can sort. And whats the alternative ? You think business can afford to offer better from home ...

"As for England, half the youth there seem to be from that region, so what are you talking about?"

Don't exaggerate much do you ? Cant really answer that because im not sure if you actually believe it or are having a laugh.

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How do you pronounce "tzatzar" ?

tuh zah tuh zar ?

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the west is like intel was during the p4 days. If the west gets its act back together it will be like intel now. another thing to add, a lot of old money invested all over the place is western. that has a lot of weight. many people don't know that the queen of england has more money in more things than any1 on the planet.

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I think 'T' should be silent!

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