Employees Perception towards Training in IT Sector

By Agarwal, Manish; Nayak, Tapan Kumar et al. | Asia-Pacific Business Review, April-June 2008 | Go to article overview

Employees Perception towards Training in IT Sector


Agarwal, Manish, Nayak, Tapan Kumar, Gupta, V. P., Asia-Pacific Business Review


Introduction

The Indian IT industry has a prominent global presence today largely due to the software sector. Promotion of the software industry and protection of the hardware industry from external competition has resulted in this skewed growth. More recently however, policy changes have led to a tremendous influx of leading multinational companies into India to set up manufacturing facilities, R&D Centers and offshore software development facilities. The domestic market for both software and hardware is getting revitalized. All these developments have had a significant impact not only on the economy but also the environmental and social milieu.

The vision of Information Technology (IT) policy is to use IT as a tool for raising the living standards of the common man and enriching their lives. Though, urban India has a high internet density, the government also wants PC and Internet penetration in the rural India. In Information technology (IT), India has built up valuable brand equity in the global markets. In IT-enabled services (ITES), India has emerged as the most preferred destination for business process outsourcing (BPO), a key driver of growth for the software industry and the services sector. India's most prized resource in today's knowledge economy is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the U.S.

The share of hardware and non-software services in the IT sector has declined consistently every year in the recent past. The share of software services in electronics and IT sector has gone up from 38.7 percent in 1998-99 to 69.2 percent in 2006-07. However, Electronic hardware exports have logged a growth rate of 38.8% at $2.1 billion during April-December FY07, compared to $1.5 billion grossed in the corresponding period of the previous year. IT software and IT-enabled services exports, which enjoy a lion's share of the high-tech export booty, registered $21.5 billion during the period, a growth of 28.2% over the year-ago period. In rupee terms, the growth in software and BPO exports was an estimated 30.3% during the period in reference. Meanwhile, the growth in hardware exports was an estimated 41.1%, according to export statistics by the Electronics and Computer Software Export Promotion Council.

Export Markets Continue to Dominate the Domestic Segment

It is found that India's overall export during the year 2006-07 is estimated to be Rs. 9,53,050 crore (US$ 220.36 billion) registering a growth of 19.16 percent (21.97 percent in US$ terms) over the year 2005-06 when India's over all export was estimated to be Rs. 7,99,818 crore (US$ 180.67 billion). The share of Services in India's overall export is estimated to be Rs. 3,89,250 crore (US$ 90 billion). There has been a growth of 9.91 percent (12.50 percent in US$ terms) in export of services over the preceding year when the export of services was estimated to be Rs. 3,54,160 crore (US$ 80 billion).

Furthermore, India's electronics and computer software/services industry is estimated to be Rs. 249800 crores (US$ 57.76 billion) during the year 2006-07. The share of electronics hardware industry is estimated to be Rs. 66000 crores (US$ 15.26 billion) and that of computer/services sector is Rs. 183800 crores (US$ 42.50 billion). In percentage share terms, production of electronics hardware accounts for a share of 26.42 percent and software/services accounts for 73.58 percent. Production of electronics and computer software/services sector during the year 2006-07 registered a growth of 30.65 percent (33.73 percent in US$ terms) over the year 2005-06 when the total production of electronics computer software/services was estimated to be Rs. 1,91,200 crores US$ 43.18 billion.

Moreover, computer software/services excluding ITES valued at Rs.1,05,000 crore (US$ 24. …

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