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News >> Technology >>
China, Ireland major threats in software: ICRA
By siliconindia
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Monday, 06 October 2003, 19:30 IST
NEW DELHI: China and Ireland that are emerging as important software development destinations may pose threat to India's dominance of the sector, according to a report by rating agency ICRA.
Emergence of China and Ireland as software development destinations, slow pace of growth in the domestic market and protectionism by export destinations like visa restrictions and minimum wage stipulations, which could render onsite opportunities unattractive, are the major threats to India's software reign, the report said.
Low presence in global packaged software market, low telephone and PC penetration levels with inferior telecom and physical infrastructure standards are the weaknesses of the India's growing IT industry.
"India rates very poorly in the packaged software segment and its share in the global IT services market remains low at an estimated 1.5 per cent," the report said.
India is a key player in global customised application development segment with 20 per cent marketshare but this segment represent just five per cent of the global IT services market.
However, the IT sector was poised to grow very rapidly globally and despite threats of competition from other countries like Ireland, Philippines and China, India was well positioned to exploit this market, it said.
The report said Indian stands to gain from its strengths like quality orientation, experience, government incentive for software exports, focus on offshore development and English speaking population.