Internet Potential in India
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- Sharon Colaco
India's Webspertise
India. This culturally diverse nation has an astounding mosaic of 950 million
inhabitants! The legendary South Asian country of elephants and snake charmers
is now also making waves in the web development services arena.
India's foray into web-development
India was a latecomer to the Internet. The reasons are low PC penetration and
lack of infrastructure and high Internet costs. This scenario changed soon
enough, and Internet usage grew at an exponential rate. Cyber cafes played a
key role in making the Internet accessible, which helped a great deal.
Web-development outfits sprouted first in Bangalore and Hyderabad, and soon in
other parts of India. The downturn in software development too proved to be a
spin-off factor, prodding more Indians towards the web stream. The number of
India's Internet users is forecasted to reach 50 million by 2004. According to
a recent national survey, 55% of young Indians are opting for careers in
web-related activities (design, integration, web services, content writing,
database integration, e-commerce etc). Not surprisingly, India is now a potent
hub for web-development.
Just how good are India's web-shops?
True, India is gearing up its web expertise in a big way, but just how good are
its web-shops? India's web gurus have moved far beyond amateur web designing.
Developing a great site means much more than adding fancy graphics, killer
designs, or sticky content. Any web-guy in India will tell you that these are
all necessary factors in site design, but the key to successful web designing
is the technology and the idea that it is built on. Web-shops are therefore
picky about the expertise and capabilities of people who work with them. They
keep up-to date about trends in their field, and can be often found to be on
online lists and forums, discussing the finer points of Java, J2EE and
client-server technologies. India's web shops are probably the best in the
world, and improving constantly.
How is all this possible?
The buildup about how good India is must have got you wondering about how a
developing country is winning hands down in the web development arena. Here are
the answers:
Knowledge professionals:
The vast resources of skilled web development professionals in India has
ensured that there has been a healthy growth in the number of India's web
professionals over the last decade. From 2,000 knowledge workers in 1986, the
number increased to 222,090 web professionals in early 2002.
Affordable IT Education: IT education is 8
times more affordable in India than in the United States.
English-speaking professionals:
Most Indians are fluent in the English language. This has led to a choice of
careers in web development, and consequentially, supplementary careers in
content and technical writing.
Government Incentives:
The Indian Government realizes the potential of IT in improving the economy,
and has initiated several programs to encourage and improve the industry. The
Ministry of Information and Communication Technology is developing
infrastructure that supports information technology. The IT Bill passed in 2000
provides a legal framework for the recognition of electronic contracts,
electronic filing of documents, etc.
Influx of talent from other educational streams:
India's educational system lays strong emphasis on Math and Science. A large
number of students therefore get into engineering colleges. However, they are
not assured of jobs, and engineering-related jobs are not as remunerative as IT
jobs. So the influx of architects and engineers who are strong in design
fundamentals into the web-development industry.
These are the major factors responsible for India's strengths in the web
development industry. The market for the growing number of web shops in the
country is made up of India's corporate sector, the huge educational sector and
other organizations.
The long-term potential
India's domestic market for web development is approaching saturation. Where's
the web industry headed then? The recent economic downturn has forced
organizations in the US and UK to reduce their IT costs. Rather than building
up an expertise in web development, these enterprises are opting to outsource.
This counter-recessionary boost to the trend toward outsourcing to offshore
service providers is where India stands to gain. India's webspertise makes it
the hottest outsourcing choice. It currently controls 85%+ of the market.
The increasing emphasis on customer response activities in the West have made
Indian outsourcing service providers reinvent themselves and extend their web
development activities to ASP (Application Service Providing) and other
high-end outsourcing solutions. Daksh.com offers a range of Web-enabled
customer care and value-added services (including real-time chat, knowledge
management, e-CRM architecture) to global companies like Amazon.com and
Bigfoot.com. Indians are fluent in English and are more quality conscious.
Given this strong value proposition in terms of skilled labor, long-term
economics and a high position on the learning curve, India could build a
$17-billion web-enabled industry by 2008, says the most recent Nasscom-McKinsey
report.
Is India the only player?
The offshore outsourcing model was first made successful by India, the first
player to provide outsourced services from as far back as a decade.
India is now facing competition from Mexico, Russia and Ireland, China and
Canada. However, India's companies are strong, with customers passing the most
emphatic verdict and extending their contracts. Skilled manpower costs in India
are significantly lower than in the other countries. Besides a vast pool of
talent and a remarkable fluency in English, India has two other traits of a
successful offshore region mainly a rapidly growing infrastructure and a proven
experience of doing business with the West.
And finally..
Kiran Karnik, President, NASSCOM (National Association of Software &
Service Companies, the premier association for IT in India) says, " India
and IT are like France and wine", reinforcing the fact that a
developmental trend has overtaken the nation. The move to outsource web
development activities has taken on an unprecedented momentum, adopted partly
to focus on core competencies and partly to streamline staffing in a
talent-strapped economy. Outsourcing has grown into a mature and viable
alternative, with a promise to boost India's economy like never before.

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