Why is this industry poised to boom in India?
The Indian IT services market is expected to grow at a compound annual growth rate of 23.2 per cent from 2006 through 2011, making it one of the world’s fastest growing markets. According to NASSCOM, the Indian software and services exports will touch US$ 60 billion and US$ 73-75 billion in overall software and services revenues, by financial year 2010. This industry is expected to employ nearly two million people by the end of 2008, and the figure is only expected to go up significantly in the years to come.
Where does India stand vis-a vis the international scenario?
India is one of the key markets for IBM and we employ the second highest number of employees here outside of US, with one in six of IBM's workers now based in India. IBM India has been experiencing over 30 per cent year-on-year growth over the last four years. While we are all very familiar with the offshore market, domestic business is becoming stronger as well. IT is becoming a source of service differentiation for Indian businesses, particularly in highly competitive markets such as telecommunication where we are seeing a race for market share.
How acute is the skill shortage in the sector?
Senior and middle managements across companies are already starting to see a strong upward pressure in salaries. If left unchecked, the possibility of India losing its cost advantage in these segments is very real. It is imperative that we continue to attract more people to this profession.