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Information Technology Management Class Notes_104372871-Information-Technology-Industry

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Information Technology Industry As a relatively poor country, India is not normally thought of as a nation that is capableof building a major presence in a high-technology industry, such as computer software. Inlittle over a decade, the Indian software industry has astounded its skeptics and emergedfrom obscurity into an important force in the global software industry. Measured by theage of many industries, the computer or information technology (IT) software industry inIndia is still in its infancy. Yet, its growth and development has caught the attention of the world market so much so that India is now being identified as the major powerhousefor incremental development of computer software. Although India’s domestic softwaremarket is burgeoning fast, the most important factor that has driven this progress is thegrowth of the export market. While still a relatively small share of export market, India’ssoftware export business is mushrooming and export revenue has been growing at anincreasing rate. 8.1 Why Information Technology Industry? The software services industry provides a lower bound on the relative advantage of family business groups over independent entrepreneurs in exploiting new opportunitiesfor a number of reasons   The industry is very conducive to starting entry because of low capitalrequirements. Little government regulation on entry.  A relatively low level of minimum economic scale to achieve profitability. Further, the Indian government inv ...
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