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With a dollop of IT companies in India being the best recruiters offering jobs to thousands of professionals are now more interested in offering overseas job opportunities. The main motive behind this is the shortage of skills and in turn better productivity.

The Indian companies have been either operating globally to offer the vast array of employment services or are hiring foreign nationals to make up for the loss of talent in order to perform better. Supplemental hiring has become a common phenomenon for the Indian IT industry these days.

There are two reasons, one of which states the need for having the best brains which would most likely contribute towards the maximum productivity, and another which is attributed to a customer who gets drawn towards organizations with employees of their culture, religion, tastes and preferences etc.

One important example of Indian IT industry which has offered huge jobs to foreign nationals is Infosys.

Another reason because of which Indian IT companies hire experts from abroad is the emphasis on training and development of the employees belonging to the origin. When a knowledge expert is hired, he brings a lot of talent which gets imbibed in other employees. It can also be the other way round where the Indian IT company has established itself in a foreign land, learnt the technology and brought back this technology to reap profits back home and also to train the Indian employees.

Another important observation which could be made in the last few years is the Indian IT companies having their base abroad employed foreign nationals and they did so because it was difficult for the Indian employees to get green card and so stay for long.

In the Dataquest listing of the Top 20 IT companies from India, the top seven positions remained unchanged, with TCS, Wipro, Infosys, HP India, IBM India, Ingram Micro and Satyam Computer Services retaining their positions, from No 1 through 7. (HP India and Ingram Micro derive a major part of their revenues from the sale of computer systems and peripherals, while the others make money from exports of software services; IBM India has significant services–domestic and exports–revenue, as well as systems sales.) Unlike the previous year, there was no major change in the rankings in the top 14 positions with no company moving up or down by more than two places.

The DQ Top 20 Club — the ranking of top IT companies in India by revenue — also saw changes, with three new companies — two of them doing business primarily in Indian domestic market — entering the list, while three exports-led firms made their exit. Interestingly, all the three new entrants are non-Indian firms — Accenture, SAP and Dell — which replaced three Indian firms, Teledata, Patni and Moser Baer, that ranks amongst the Top 10 CD makers in the world.

The most spectacular story is the entry of Accenture India at No 15 (the company was not tracked by the Dataquest study in previous years, even though it was operating in India its development centre for nearly a decade) and SAP India, which rose six positions to be a No 18, driven by a strong performance in the small and medium enterprise (SME) market, that helped it record 84% growth.

Bangalore: A ladder can help to reach to the top but an elevator makes it quicker and easier, should be the mindset for the current Indian IT industry, which has to grow in terms of innovation and upgradation. “India has a slower uptake on newer technologies. It takes time to upgrade to the new versions of applications,” says Mike Rhoads, Director, Rational Software, Asia Pacific.

A similar view is observed at a Nasscom conference, where it was pointed out that in order to become a top power, India’s tech industry needs to upgrade its technologies and business models, which will escape in dwindling profits and market shares. The difficulty in doing so lies in its inclination towards the traditional methods. Infact, the foundation of the policies in the technological line has given more importance to the outmoded systems and institutions. As the Technology Policy Statement of Government of India, 1983 states, “Our future depends on our ability to resist the imposition of technology which is obsolete or unrelated to our specific requirement and of policies which tie us to systems which serve the purposes of others rather than our own, and our success in dealing with vested interests in our organization; governmental, economic, social and even intellectual, which bind us to the outmoded systems and institutions.” This defect infact is seen in the IT sector globally, as Gartner points out in a new survey-based report, that the IT sector in general is slow in adapting to new technologies

The main point of this reluctance is the unreliability in the new versions, like many companies are reluctant to shift to Microsoft Vista from XP as the performance of the former is not satisfactory. Moreover, the long usage of any application increases the comfortability leading to hesitancy in the shift.

But a gradual realization has dawned on the IT sector. With the expanding economy, domestic IT spending is spurring as companies upgrade technologies to stay competitive. This will lead the industry to double in size by 2012, predicts the IDC.

The Indian information technology sector has been instrumental in driving the nation’s economy onto the rapid growth curve. According to the Nasscom-Deloitte study, the IT/ITES industry’s contribution to the country’s GDP has increased to a share of 5.2 per cent in 2007, as against 1.2 per cent in 1998.

Further, the IT and BPO industries are poised to clock revenues worth US$ 64 billion by the end of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40 billion and the domestic market estimated to clock over US$ 23 billion, according to a study. Simultaneously, the Indian IT services market is estimated to remain the fastest growing in the Asia Pacific region with a CAGR of 18.6 per cent.

Challenges and Positives:

Can we stay Competitive? In the recent past we have seen that the Globalization 3.0 has resulted in Outsourcing and Off-shoring spreading to various other countries like China, Vietnam, Philippines and the Eastern European countries. In the wake of such competition can we still remain competitive? The answer is pretty much yes. We know that our assets are the talented pool of people who are not only competent technically but also linguistically better at English compared to the other competitors. Also the government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy give Indian IT companies and edge. But contradicting this is the Nasscom survey, which states that majority of the graduates coming out of the colleges today are unemployable. We need to introduce training programs in colleges to train the talent pool of students not only technically but also on soft skills. The training should also be imparted to the faculty to generate a better equipped talent force. These measures have already being taken by the IT companies, which also helps in reducing the training costs incurred by the IT companies after recruitment.

Yahoo! Inc and Tata Sons subsidiary firm Computational Research Laboratories (CRL) have entered into a joint agreement to make available-EKA, a supercomputer (the fourth fastest) in the world for cloud computing research in India.

Dell India witnessed 80 per cent sales over last year with revenues to the tune of US$ 700 million.
World’s leading chip designer firm ARM is expanding its India design centre to make it the largest outside Britain.
IT biggies like Microsoft, IBM, Cisco, Oracle and a host of other IT entities are working overtime to tap the smaller and medium businesses.

Conclusion:Thus we observe that the Indian IT industry has been facing some challenges but if effective steps are taken then it will surely help it to remain competitive in the future as well.

IT Companies in India have become major a sector of development for the last 2 decades. They have grown to cover major aspects of computing and technology. The reason why it has catapulted in importance is due to the improving accessibility, awareness and utility of technology. It is a common fact that a country’s IT potential is paramount for its march towards global competitiveness, healthy GDP and defense capabilities. Punjab has been steadily acquiring a strong national footprint as far as the service sector is concerned, with the IT/Knowledge Industry gaining prominence in the state.

NSPL (Nest Software Pvt. Ltd.) is the leading information technology Company in Punjab that provides highly qualitative, timely delivered and cost-effective IT services to a wide variety of global clients. In the timeline of 10 years, NSPL has generated a huge business transformation with matchless innovation in service delivery and business model. It is powered by a pool of talented IT professionals across enterprise solutions, client relationship management, business process quality, engineering solutions, business intelligence, operations management, product lifecycle management, and infrastructure management services, among other capabilities. After years in the IT Industry, backed with unmatched technical expertise and insights, this company has maintained the highest level of compliance and quality that goes according to the changing times and technologies leading to innovative solutions in the state as well as globally.

Company has launched highest number of software services in Punjab. It is the company with highest number of packaged products, being used in various sectors. Products like Hotel Front Desk Software, Point Of Sale Software, Accounting Software, Payroll Software, SMS Software, Production Management Software, CRM Software, Library Management Software and many more have been launched by NSPL and are being installed in various sectors like schools, colleges, hotels, retail industry etc. Company works parallely on international as well as domestic projects and hence generates a great turnover as compared to all other IT Companies. NSPL provides offshore business solutions to many international clients over various platforms like Software services, Web services, Multimedia Services etc. Application Development and Maintenance Services, Enterprise Application Services, Website Design/Redesign, SEO Services, SEM Services, Multimedia Presentation Services etc provided by NSPL has added a lot in company’s domain experience and has proved to be a medium to make NSPL one of the renowned and leading IT company in Punjab.

NSPL is one of the IT Company in Punjab which provides in-house training, which helps in the more efficient and effective learning process for their employees and trainees. It has undertaken a major education program titled “EDGE (Training & Placement Program)” which gives an EDGE to the candidate’s career. The Foundation has conducted numerous seminars in various universities & colleges. The focus is to provide training and future job options to their trainees as well as other capable techies and support the applicant to get into the appropriate career in IT. During training, trainees are made to work on Live Projects/Case Studies as necessary to transform a student into a ready to work professional. Very few companies think about it, but NSPL gives chance to the candidates to work on LIVE Projects. Their skills are enhanced a lot on such a platform. The Foundation has undertaken various initiatives in contributing 100% training expenses for the brilliant and the poor and needy candidates and 60% contribution for the other candidates. The foundation also organizes social events time to time.

In brief, NSPL has provided a great platform for the career development, with its products and services. Its main motto is to provide a learning culture to its employees and encapsulate team spirit in them. NSPL family is open to new ideas which provide atmosphere for cumulative as well as personal growth. Hence NSPL is considered to be taking Punjab IT sector towards growth.

India has branded itself as one of the favourite destination for application development outsourcing, owing to a great combination of lower cost and high quality IT. It has been playing a major role in the global market and has claimed the benefits of the globalization opportunities in a wider way. IT sector of India has largely developed over a period of decade but it is still in its developing process. In Indian IT sector, the techies are working harder and harder to generate better revenue from the domestic market. Various challenges have eroded the research and development levels, about which we need to be alert and proactive in order to align the strategies and decision-making with various opportunities in the current market. These days IT sector is like a game of “two steps forward and one step backward”, and that’s in the good days. In other days, it is most definitely one step forward, two step backward and you trip over because you don’t see anybody sneaking up and you and that somebody treads on your face while you are lying on the ground.

The United States have always been India’s largest trade partner, source of foreign money investment and external job opportunities for the Indians. Any downfall or slow of the US economy is likely to hurt India more today than the past times. The US economy is a credit-driven economy sustaining on scrounged capital. What characterize the economy are high savings consumption and fewer saving. The preeminent behavior has led to credit being extended to borrowers who do not have the capacity of repaying, resulting into high default rates, turning into losses in the financial system. There are high signals of slowdown in the US economy- rising unemployment rate, large credit defaults and falling real estate prices which are heating up the Indian economy and heading towards slowdown in growth.

Some of the major challenges faced by Indian IT Companies are:

Expensive & Unskilled Manpower
IT industries have become expensive due to rapid increase in the cost for the manpower. There has been regular increase of salaries by 10-20% every year. This increase in the salaries without correspondent increase in output levels per person is eating into the profit levels of the Indian IT companies. In the earlier times India provided “less expensive, highly skilled manpower”; currently it has run out of that “skilled” manpower and whatever manpower is available is either not skilled enough or highly expensive.

While talking about management skills, questions are raised about the quality of management in IT sectors due to relatively low levels of skills in manpower and overall business performance. Managers must possess a combination of specific competences and softer skills and attributes to manage and motivate employees. Changes in technology and organizational changes can create a need for managers to continually develop and enhance their competencies and their personal attributes as part of an ongoing development process.

The failure to address security problems today is by and large caused by organizational issues, not technological limitation. The major organizational obstacles to an effective security program are- when many companies aren’t even aware of the attack, whether internal or external, the majority of companies with massive security suffer from head in the sand problem. The other obstacle arises when though you have a good security team that knows what the issues are, more often than not there are major organizational obstacles to actually solving the problem. Political battles, turf wars etc, destroy the effectiveness of more security programs than the lack of any product or technology. To be an effective part to have a more secured technology, one should have Knowledge– of what needs to be done; Empowerment—to make the necessary changes; and Talent- to execute it properly.

Customer service
One of the challenges faced by IT sector in India is to improve customer service by listening to and meeting the client’s need. IT has been suffering from bad reputation when it comes to satisfying customer needs. Many a times, the work is done incorrectly or not upto the customer’s satisfaction and requirements and it is at the end the customer who ultimately determines what is good and what not.

Human Resources
There is a high need to develop creative ways to minimize stress, satisfy employee needs, and match corporate needs to employee goals. Being in the developing country, workload is increasing day by day, a relaxing break is must- anything that can give IT professionals a break should be considered to retain valued employees leading towards growth of the nation.

There are many more challenges which are somewhere the other side, hampering as well as boosting up the spirits of techies. Increasing productivity, Maintaining and accomplishing tasks at a time, managing budgets, creating good public relations/marketing, multinational operations etc, such challenges have been at times difficult to overcome but they have encouraged the IT-techies to work harder and harder to setup and enhance the growth of the country’s IT sector.

Throughout this article, I have written about IT as if it were some amorphous creature existing out there, somewhere. It’s not. “IT” is you. You will have to address these challenges, and that can be a daunting task. But what can you do personally? IT has met challenges like these in the past and it is the creative, out-of-the-box thinkers who have become most successful. New ways of doing business will be required. You can be part of this change by doing your job to the best of your ability. You can also recognize how your job can be changed to meet these challenges, no matter how small the part you may play — and that can make a big difference company-wide.

Globalization has been a boost to the trend of generating high amount of revenues and turnovers over various economic sectors. We all know that Indian economy is a growing economy and main credit goes to the software revolution. But do we all know that most of the revolution and development centers are in US and not in India, which work as a facilitator for a developed country’s business and daily life. 98% of the great Indian brains are in US which work for them to improve their technology.

The United States have always been India’s largest trade partner, source of foreign money investment and external job opportunities for the Indians. Any downfall or slow of the US economy is likely to hurt India more today than the past times. The US economy is a credit-driven economy sustaining on scrounged capital. What characterize the economy are high savings consumption and fewer saving. The preeminent behavior has led to credit being extended to borrowers who do not have the capacity of repaying, resulting into high default rates, turning into losses in the financial system. There are high signals of slowdown in the US economy- rising unemployment rate, large credit defaults and falling real estate prices which are heating up the Indian economy and heading towards slowdown in growth.

The major area of concern is the software segment which is being affected the most. US has emerged as the bread and butter for Indian software exports. A slowdown in US economy is hurting the Indian economy since it is still largely export-dependent as it has not yet found its own domestic market large enough to accommodate any loss in the external sources. The analysts and software CEOs argue that during slowing economy, jobs are cut-down and companies invest more towards automation, so that the demand for software services and for IT products increase while the economy slows down.

The IT sector is predicted to be trampled underfoot with economy crises all over, releasing fair amount of shocks for the software techies, and the most surprising fact is the swiftness and the ferocity of the impact. It is declining the growth of Indian IT services and products. The slowdown is stretching the revenue margins and profits under pressure. One of the major impacts of US subprime crisis on global markets would be certain foreseen losses pertaining to securities, further making credit conditions stringent. These facts have clearly shown their adverse affect on the IT sector which is facing tough times ahead that is evident from Nasscom’s downward revision of growth forecast. This consequently is increasing the losses incurred on securities. As a cumulative effect, the business investments are dropping and India is losing its economical growth.

The need of the hour is to have more open economy, attract investments, which would re kindle innovative concepts and enhance foreign direct investments. India needs to work more on its domestic economical sectors and so the growth has to be sustainable, only then the impact of US subprime crisis on India can be offset.