The growth of Indian software industry, in my attitude, clearly explains much of the theory of comparative advantage. The first part, in assumption, India has been able to specialize in products (software application) that produces more efficiently and at the same time, are the software exporting countries were producing less efficiently.(For example, the United States, Europe, India and Australia).

From the viewpoint of developed countries (outsourced) to import goods or software modules, which produces less efficiently. Therefore, this theory focuses primarily on the development of global economy where all countries can benefit commercially.

As a relatively underprivileged country as a nation that is able to build a greater presence in a high-tech industry such as computer software. In just over a decade, but the Indian software industry‘s surprised skeptics and emerged from obscurity to a major force in the global software industry.

Between 1991-92 and 1996-97, sales of software companies in India grew by 53% compound interest per annum. Sector’s turnover in 1991-92 amounted to $ 388 million. By the year 1996-1997 turnover was around 1.8 billion euros. In 1997, more than 760 software companies in India, employing 160 000 software engineers, the third largest in the world of talent.

Most of the growth of Indian software Development Company was based on a contract or project-based work for foreign clients. Several companies for example to keep the applications to its customers, or to convert the code to move the software from one platform to another.

More and more Indian companies are also involved in major development projects for foreign clients. Examples of TCS, the largest Indian software company, are the alliance, Ernst & Young, TCS to develop and maintain custom software for the Ernst & Young’s global clients.

TCS also has a development alliance with Microsoft when the company developed a paperless depository by the National Indian stock market is based on the operating system Microsoft Windows NT technology and SQL Server database.

The Indian software industry has occurred despite a poor IT infrastructure. The installed base of personal computers was only 1.8 million in 1997 in India, a nation of 1 billion people.

In explaining success of your business software industry in India point to a number of factors. Although the general level of education in India is low, the middle class in India is very important for education and higher education institutions are world class.

Another great advantage of an international perspective, is that English is the working language in most of the middle class in India – a relic of the days as the British Raj. Then there is the salary.

American software engineers are increasingly scarce, and the basic salary has been driven up to the highest of any professional group in the country, where the entry-level programmers earn $ 70,000 a year. At entry level programmer in India instead of from about $ 5,000 a year, which are very low by international standards but high by Indian standards?

Another factor in the hands of India is that the satellite has eliminated the distance barrier to business customers from abroad because the software is nothing more than the current ones and zeros, can be delivered in terms of cost and low speed of light around the world. In the world, instant messaging, the geographical position of India gives an edge zone.

Indian companies have been able to tap the growing international market for remote maintenance. Engineers India can correct errors in the software, updates to data processing systems or overnight while users in Western companies have fallen asleep.

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