Archive for March, 2011

Indian Informationtechnology Industry – a Future Outlook

Undisputedly, IT industry is one of the fastest growing industries among whole world. Indian IT industry has placed itself in the third position due to domestic as well as international market demand. Though ‘IT’, a small word but it converts the entire world into a global village. The intensification of IT still lies in phenomenon and fantasy. From the last decade India has became one of the most important offshore destinations amongst the Asia-Pacific region. During 4 to 5 years it increases up to 3 fold and captured the leadership position in the world market. Indian IT sector acquires 3% of the total global market and it is expected to increase its volume in the next few years. IT and ITES has recorded $ 39.6 billion revenue in the year of 2006-07 that register a growth of 30.7% beating the projected growth of 27% as per NASSCOM estimation. Over times, India has become ‘IT’ hub.  The total revenue earned by IT USD 48.1billion in 2007 and expected to cross 64 bn in 2008 out of which export amounted to 40.8 bn and domestic 23.2 bn and by 2010, IT revenue is anticipated   73-75 bn.

The strategic review by NASSCOM, 2008 also pointed out as the proportion of national GDP Indian IT sector revenue has grown from 1.2% in FY 1998 to a predictable 5.5% in 2008. Net value added by this sector to the economy is estimated at 3.3% to 3.9%. According to NASSCOM, about 3 million people can be employed in indirect and induced employment like telecom, power, facility management, IT transportation, catering and other services. To facilitate the penetration of IT and ITES in rural areas, the Indian Government has formulated a proposal to establish 100000 Common Service Center (CSC) in rural areas. Indian Government takes the initiative to execute the scheme through PPP (Private Public Partnership) to connect rural people to World Wide Web and the sanctioned amount is 57.42 billion for such proposal. Indian Companies are enhancing the global services delivery capabilities through a combination of Greenfield initiatives, cross border mergers and acquisitions, partnership and alliances with local players. This enabling them to execute end-to-end delivery of new services. The reasons behind the super normal growth of IT industry in India attributed to abundant youth talent ages less than 25 years, skilled English speaking man pool, comparative cost advantages, emphasis on quality and information security, flexible govt. policies, regularity environment etc. Right now India possesses a chunk of youth talent who want to become tech people. This demographic profile is unique and inherent. British colonization also helps to generate an English speaking expert human resources pool. Above all comparative cost advantage has placed India in a very good position. Aboard client mostly from U.S.A and U.K, they can save 25%-50% over original cost base in outsourcing business. It is shown that 10-15% wage inflation in India amounts to a lower dollar value increase in the payroll compared to the 3-4% average wage inflation in the developed countries. Previously 69.4% outsourcing job was coming from U.S.A and 22.6% from U.K. Now at present this proportion has changed outsourced job from U.S.A and U.K are respectively 61.4% and 30.1%. Technology diffusion helps to pull down the telecom cost.

Most of the Indian tech companies have obtained ISO, CMMI, Six-Sigma certificates to provide the service at international standard and it is expected that in near future India will have the status of having highest number of ISO 9000 companies in the world. 82 Indian companies certified at SEI CMM Level 5, which is higher than any other country in the world, possess. India based companies and MNCs constitute the largest number of quality certification achieved by any single country. Indian Govt. has played a very crucial role in IT sector. Minimal regulation and policy restrictions by Central as well as state government. has facilitated in its growth. More over STPI (Software Technology Park of India) scheme has played a pivotal role in catalyzing the growth of this sector and rapid rise across the country. Government of India has placed IT sector in SEZ (Special Economic Zone) hence it enjoyed 10 years tax holiday. To boost the overall growth of IT sector Indian Govt has withdrawn the constraints in location selection, complicated license policy etc. SEZ become huge success in attracting Foreign Direct Investment. Apart from these initiatives proper infrastructure development is also very crucial for IT growth. Proper infrastructure development in all over country may place India at a prime position in global IT map. Indian IT industry is purely export oriented. Most of its revenue comes from IT-BPO services known as Business Process Outsourcing, divided into two sections – i) back office sourcing including internal business functions, ii) Front office sourcing including external business function like customer related services such as marketing , technology support etc. Indian IT sector largely depend on outsourcing job. However, the whole world is affected by U.S growth recession and India is no exception that is alarming to this sector. This fiscal IT and BPO sector will grow at 23-24% as against last year’s 29%. NASSCOM assumed that Indian IT and BPO sector may slow down to 3-4% in the current year as against that of last year due to uncertainty in global economy, frequent fluctuation in the value of dollar, growing competition from neighbor countries like Chiana, Philipines etc and manpower crisis which may become more difficult in coming days. NASSCOM has estimated shortage of five lakhs manpower in this sector by 2010. The BPO sector is seeking for tier-II and tier-III cities to expand the business of BPO despite of concentrating of seven cities. As US, market response is not so good India is trying to explore new market in Australia, European Union, and Japan. IT sector gets 40% of revenues from new deals and 605 from the existing one. India IT sector directly or indirectly hugely depends on U.S.A and U.K for outsourcing. Recently the recession in U.S economy adversely affect Indian economy. If Indian BPO does not have any new clients from these countries then business will follow the decline trend. Currently the financial turmoil largely affects the global economy and its result is reflected into Indian economy. India already experience pinch of it.  It is foolish to think that there will be no recession in the business world but the consequence of it depends on its duration.

The Indian IT remains a success story till now.  However, Indian Government must also be very concerned about this industry. To overcome such critical situation Government should increase the time span of SEZ, which is likely to be ended by 2009, decrease amount of MAT (Minimum Alternative Tax) chargeable to this sector, which is pulling down the robust profit earned by this sector, simplifying the license policy to attract more companies in this industry. Indian IT industry is a flourishing industry and the liberalized policies of Government help this sector to grow gradually. IT services and information technology enabled services have shown unprecedented growth. The demand for such services has grown substantially. The growth of the Indian IT industry is likely to be very good in future. The future trend of Indian IT industry appears to be very bright, promising and prosperous.

Shrabanti Pal
http://www.articlesbase.com/finance-articles/indian-informationtechnology-industry-a-future-outlook-692705.html

Credit Card Debt Consolidation Program: The Safest Way To Erase All Your Debts

Credit card debt consolidation program is an innovative way which helps you to merge all your outstanding dues to make them manageable. This way, you can manage your debts and finances more easily. You may have accumulated debts on various things. Some common examples could be a new car, education, foreign trips, or for renovating your home. However, the burden because of excessive use of cards is the most common form of debt that bothers people.

Your Best Tool For Debt Reduction
If you want to get rid of the huge burden of loans and dues, the first step is to look for the right debt consolidation program for card dues. It is always a great idea to ask for quotes from various companies offering debt help and choose the one you think is the best for you. When you choose to avail a free help, you also get the valuable services of professionals who are experts in offering loan consolidation with a good program for becoming debt free and overall financial management.

The credit card debt consolidation program also enables you to repay your dues in small, convenient and affordable monthly payments. You can even have an extended duration of up to six years to ease your financial burden. You can opt for help in numerous fashions. It is not necessary to opt for an expensive process. Rather you can select a debt help plan that costs a little or even free. Bad credit consolidation is also becoming increasingly accepted today as a natural response to the high level of debt.

If you have developed a spendthrift nature by using your credit cards, in the end, you might get caught up with mounting debts and outstanding credit bills that could cause multiple problems including affecting your credit rating. This is where a this program comes to your rescue. These debt elimination programs are good ways to eliminate card blues.

Overall, credit card debt consolidation program is a great financial tool to get you out of the deep financial crisis and put your finances back on track. Thus, If you are bothered by astounding dues, do not despair. However, make sure that out of numerous companies offering services for card dues, you must select the one that a proven track record and offer the services at a reasonable fee. After you have made up your mind to opt for debt help and your budget for that, you are in the best position to select the right debt program for you and embark upon your journey towards being debt free.

Saurabh Jain
http://www.articlesbase.com/non-fiction-articles/credit-card-debt-consolidation-program-the-safest-way-to-erase-all-your-debts-133480.html

Is the Republican philosophy of deregulation and tax cutting what caused the economic collapse?

The last 8 years we gave massive tax cuts to the wealthy and deregulated the financial industry causing an economic bubble in the stock market, commodities, housing, etc. Doesn’t it make sense to bring back tax rates to pre-Reagan era and keep regulations in place so that growth is moderate and stable??

And yes, I blame Clinton for a lot of things too….but doesn’t mean you Republicans and your tax cutting/deregulation philosophy get a free pass.
The banks weren’t forced to give out sub-prime loans, they were handing them out like candy! Come on Republicans, don’t try to distort the situation here. The reality is that if the loaning institutions were forced to give out loans to qualified applicants, we wouldn’t be in this mess.. This is an example of where REGULATIONS are GOOD.

I think a lot of people are to blame. However, Clinton left the U.S. in a surplus. republicans, you can look it up if you don’t believe me. Bush drove our national debt to record high with trillions of dollars in debt with China and 10 billion/month to pay for war in Iraq. I do blame republicans more than democrats, and I’m republican but I had to vote for Obama. The tax cuts did not help the economy whatsoever. My republicans blame it on the media even though statistics show the facts.

If the people of the world with held all tithes and monetary support from organized religions, the end ?

would all organized religions collapse, in the past they took what they wanted by force and the pillage of other peoples to support them, like the gold and other precious stones and metals from the Americas by the Catholic church
Tobasco you need to brush up on the history of the Catholic church and how it was spread in the Americas
St Mugg people from all walks in life contribute to feeding the hungry, not just organized religions, and the governments all over the world contribute much more then the organized religions
Bobby;s girl, what you are describing is what the earlest followers of Jesus did, just fellowship and Love

Believers would just do as the Amish do – meet in each other’s homes for fellowship and worship. The ‘church’ is the people – not the building.

Will the economic collapse of our nation mean the election of Senator Obama on November 4th to the presidency?

Especially since Senator McCain underscored his admitted ignorance of economic issues by saying that "the fundamentals of our economy are sound"

I hope not since the policies he supports caused the problem.

In 2003 Pres. Bush tried to get reforms in place to prevent this, but it was blocked by the democrats.

In 2005, McCain co-sponsored a bill to reform Fannie and Freddy to keep this from happening. It was blocked by the democrats.

The policies that caused the housing collapse that has led the other markets to collapse started in the Carter days and were expanded by Clinton. The concept was well meaning – making sure that poor people could get loans to buy their own homes. What the policies did was force the banks to lend money to high risk people who have increasingly defaulted on the loans. The banks would have NEVER loaned all this money unless they were forced to.

Any system that knowingly lends money to people that can’t or won’t pay it back is going to fail. Bush and McCain both tried to change it, but the dems blocked them.

SOCIALISM SUCKS!

How has the United Nations responded to the global water crisis?

How has the United Nations responded to the global water crisis?

Mostly with talk and promises.

The UN doesn’t actually have the power to do things. Individual countries and organizations do that.