Introduction

India has a new mantra - Information Technology (IT) - and almost everyone has started chanting it. This IT mantra has its roots in the "passionate and strategic infection" spread by the unrivalled success of India’s export led software industry. This passionate infection has not only made the software sector as one of the high value-addition and net foreign exchange earning industry, but has created history of sorts on the Indian stock exchanges. The potential of its high capacity to generate wealth, foreign exchange and employment has already caught the imagination of India’s businessmen, citizens, economists, bureaucracy and politicians, alike. Software driven IT industry is today at the top of India’s national agenda as an instrument and a model, for the modernization of India’s economy.

In India, there has been a gradual shift towards usage of IT in government, public sector, private sector as well as public services and education. However, usage of computers is yet to reach many homes in the country. Undoubtedly, it was the computerization of railway passenger reservation system in 1986- that brought computers closer to masses. And, in the last two years - it is the power of internet, E-Commerce as well as Government of India’s thrust - which is bringing I.T. in daily life of a common person in India.

Pioneering work done by Indian software companies using the high speed data com links brought in new paradigm of offshore software development. In fact, Indian software industry has been recognized as representing one of the most successful business model that can help to sustain high growth and competitiveness. Thus, with software as the driving engine, since early 90’s, the Indian IT industry has been growing at a phenomenal growth rate. What’s more, India’s software industry is torch bearer for not only India’s IT industry but even Indian economy’s global ambitions. It is a way to build competitiveness in technology-driven service economy.

India has many advantages to become an important player in the global IT industry. By marshalling its vast human, industrial and technological resources, especially with expansion of its software sector – the engine of the IT Industry, India can raise productivity of domestic manufacturing and services. Obviously, this will lead to IT in governance, IT in industry and IT for every citizen of the country. There are even talks of infusing tangible productivity gains amongst various sectors and communities through use of IT. The domestic opportunity is evident.