IT SOFTWARE SECTOR by ANOOJA.K.S

INFORMATION TECHNOLOGY-SOFTWARE SECTOR



SUBMITTED BY,

ANOOJA.K.S.
1st Year MBA.
INSTITUTE OF CO-OPERATIVE MANAGEMENT



CHAPTER 1: SOFTWARE INDUSTRY - OVERVIEW

The software industry includes businesses involved in the development, maintenance and publication of computer software using any business model. The industry also includes software services, such as training, documentation, and consulting.
The largest and most profitable of software companies are located in the United States. As of 2008, the client software industry is dominated by Microsoft. Software Magazine's 500 list in 2005 shows the total amount of revenue brought in by software companies per locale, with the highest being California due to Silicon Valley and the number of Fortune 500 software companies residing in that area.
There are several types of businesses in the software industry. The largest and most profitable publish horizontal proprietary software such as Microsoft, SAP AG, Oracle Corporation, and Adobe Systems. Others develop vertical-market software intended for a particular sector or niche in the economy such as finance, health care, insurance, retail, automotive manufacturing, and so on. A great deal of specialized software is produced for various niches. Other companies do contract programming to develop unique software for one particular client company, or focus on configuring and customizing suites from large vendors such as SAP or Oracle.

1.1 HISTORY

The software industry started in the early 1960s when universities and businesses first began to use computers and to seek out programs to do certain computing tasks. Many of these programs were written in-house by full-time staff programmers. Some were distributed freely between users of a particular machine for no charge. But others were done on a commercial basis, and the very first standalone software firms started in the United States in 1959-1960.
The industry expanded greatly with the rise of the personal computer in the mid-1970s, which created a growing market for games, applications, and utilities. And gradually the concept that software should be bought and paid for took hold. One of the earliest proponents of this view was Bill Gates, founder of Microsoft.

In the early years of the 21st century, another successful business model has arisen for hosted software, called “Software as a Service”, or SaaS; this was at least the third time this model had been attempted. SaaS reduces the concerns about software piracy, since it can only be accessed through the Web, and by definition no client software is loaded onto the end user's PC.

1.2 SIZE OF THE SOFTWARE INDUSTRY.

Software Magazines' Software 500 survey can be used to gauge the value of the commercial software industry. The Software 500 survey consists of data from the largest 500 public and private software companies, as ranked by Software Magazine. Total worldwide revenues in 2007 for companies in the Software 500 list were $451.8 billion, up 14.7% from 2006, when total Software 500 revenue was $394 billion.

1.3 INDIAN SOFTWARE INDUSTRY

The Indian Software Industry has brought about a tremendous success for the emerging economy. The software industry is the main component of the Information technology in India. India's pool of young aged manpower is the key behind this success story. Presently there are more than 500 software firms in the country which shows the monumental advancement that the India Software Industry has experienced.
The Indian Software Industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7 billion in 1999-2000. No other Indian industry has performed so well against the global competition. According to statistics, India's software exports reached total revenues of Rs. 46100 crores. The total share of India's exports in the global market rose from 4.9 per cent in 1997 to 20.4 percent in 2002-03.
It is expected that the Indian Software Industry will generate a total employment of around four million people, which accounts for 7 per cent of India's total GDP, in the year 2010. Today, the Software Industry in India exports software and services to nearly 95 countries around the world. The share of North America (U.S. & Canada) in India’s software exports is about 61 per cent. In 1999-2000, more than one third of Fortune 500 companies outsourced their software requirements to India.
The Government has also played a vital role in the development of the India Software Industry. In 1986, the Indian government announced a new software policy which was designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. In addition, to attract foreign direct investment, the Indian Government permitted foreign equity of up to 100 percent and duty free import on all inputs and products.
The software industry being the main component of the IT Industry in India has also helped the IT sector in India to grow at a good pace. As per the proceedings taking place in the software industry the future of the India Software Industry looks promising.

1.4 SOFTWARE COMPANIES

In the present scenario most of the countries over the world have relied upon Indian Software Company and firms or Software Companies for the software development activities, as the country possesses a global competency in the IT sector.
The Software development company India comprises of businesses related to the production and maintenance of computer software. The root of the Software Industry India lies in the IT phenomenon. Services regarding software such as training, consulting and maintenance are a part of this ever-growing industry. The Software companies are witnessing a rapid growth and offers lucrative job opportunities making IT a premium career option for the youth. In fact it is one of the fastest growing sectors of Indian industry.
India is emerging as a Global IT superpower. The success can be attributed to factor advantage of high quality of software human resources. The Software Industry has succeeded in converting this comparative advantage to increasing exports. More and more companies are receiving the ISO 9000 certification and the day is not far when India will have the highest number of ISO 9000 companies in the world.
Indian Software Industry is estimated to be worth USD 1.2 billion. Unfortunately the growth has been limited to a few cities around Bangalore, Mumbai, Delhi and Noida.
One problem that software companies in India are facing is that of outflow of IT professionals. This can be looked into by ensuring the conditions for investment and growth in the industry are safeguarded by political stability.
Infosys, Wipro, HCL, Tata Consultancy Services, Satyam computer Services, CMC, IBM etc are some of the major Software development and software consulting firms or companies in India.




CHAPTER 2: RELEVANCE OF SOFTWARE INDUSTRY

The computer software industry is an ever changing environment. Companies and people demand that their software do more, and of course they expect more out of the vendors they use to supply the software they need. That is no more evident when consumers see companies acquire smaller firms to expand their business and of course their bottom line.
Recent news shows that companies like SAP are trying to maneuver their way in with the big boys. Aaron Ricadela of Business Week Online recently reported that, "SAP has decided to acquire Business Objects as part of its growth plan." According to Ricadela, "The deal would put SAP, the world’s third-largest software maker, into one of the U.S. software industry’s hottest sectors." Currently Business Objects competes in a fast-growing market for software that help companies plan budgets and close their books. "The proposed acquisition of Business Objects comes as competitors Oracle, IBM, Hewlett-Packard, and Microsoft have stepped up the pace of buyouts in the corporate software sector," claims Ricadela.
Acquisitions are not the only hot topic in computer software these days. How about internet web sites and what some of them have to offer. We have all heard of the success story of companies like Google, Link Exchange and so on, where the creators come up with a wonderful web idea, and a couple of years later the company gets purchased of millions or go public in Google’s case and are now worth Billions. Nothing holds truer than the popular web site Facebook. Since Facebook has allowed outside software developers to create tools for the site, The New York Times reports, "The developers are hoping to both create and profit from expanded use of Facebook." Brad Stone of the New York Times claims, "The Company’s (Facebook) book value has soared. A report that Microsoft considered buying a $500 million share of Facebook would put its worth at almost $15 billion." Stone is uncertain if the new tools can turn a profit.
Business Week recently interviewed Steve Mills, a senior vice-president and group executive at IBM, when they asked him about the growth of IBM’s software business; he said "that the percentage of the company’s software that comes from some of the faster growing parts of the portfolio continues to get larger." According to Mills, "every acquisition made by the company fits into one of the major categories of middleware that makes up its portfolio." IBM has decided to make a version of their Lotus Symphony collaboration software for free. A trend that other companies seem to follow, such as Sun, who recently has mentioned they are going to make Solaris and Java, free, to get back to the basics of what made them, what they are.
The software industry is forever changing, very competitive, yet very necessary. If you run a small firm, or distribute a software product, you may want to look to the big boys to gain some inspiration and knowledge of where to take that product or service next.
The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector.
The Information Technology Association of America (ITAA) explains the “information technology” as encompassing all possible aspects of information systems based on computers. Both software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management systems.
Owing to its easy accessibility and the wide range of IT products available, the demand for IT services has increased substantially over the years. The IT sector has emerged as a major global source of both growth and employment. Adoption of new liberal policies in India has given birth immense opportunities to its industries. Success story of India's Software Industry is a step in the same direction. The Software Industry, which is a main component of the Information technology, has brought tremendous success for the emerging economy.
When the software industry is mostly in the services business, there is untapped potential to increase margins by also making software products. Piracy and lack of design and marketing skills have been blamed for the locals' reluctance in developing software products.
There are many obstacles for local companies in emerging markets to overcome to be able to start developing their own products. Similar as with mature markets, large incumbent software product companies have a tight grip certain horizontal product categories through network effects and lock-in, which makes life difficult for new entrants. Other obstacles include lack of reliable telecommunication infrastructure and size of the local market.

CHAPTER 3: WORKING OF SOFTWARE INDUSTRY

3.1 WORK CULTURE IN INDIAN IT INDUSTRY:

In India, most of the companies get work from outside; that is from US, UK etc. Because of the time difference and location, when India works, US guys will be at home sleeping. Most of the time, you may need to stay back in office till at least 8 PM to allow yourself to have meetings with your colleagues or clients in US. If you are in a UK project, it’s not as bad. Again, this is not a standard rule, differs from project to project. Generally, IT guys come to office around 10 AM and leaves office by 7-8 PM. Though no one asks you to stay back, you will not be able to go as most of your colleagues will follow these timings. This is not the case in US, there by 4 or 5 PM everyone hurries back home.

3.2 WORK PRESSURE:

The work pressure varies from project to project. Most of the IT companies do not allow women employees to stay back after 8 PM. And many firms nowadays discourage their employees staying back late every day. But sometimes your project demands it and most importantly, no IT company pays Overtime to employees for this!!

3.3 SALARY PACKAGE:

This is calculated based on the Total Relevant Experience in most of the companies. Add to that any extra qualifications; certifications will also matter while deciding the package. In technologies, that are short of resources like higher end computing etc the salary packages match that of many developed countries. Companies like Google pay their employees on par with US salary. But this is not common in other companies. IT companies pays well compared to other industries. As a thumb rule, entry level salary will be around 1.5 lakh multiplied by the experience of the person. Please note that this will give only the Industry average.

3.4 KNOWLEDGE ACQUISITION:

The atmosphere of growing and gaining knowledge is one of the strongest attributes of software industry. Since the companies are relatively young in a fast developing economy, there is a lot of emphasis on producing one's best possible work while fostering a community of collaboration. In an open environment where communication among all levels of employees is encouraged, it's hard not to learn something new every day.
Gaining meaningful professional experience abroad has always been a top priority in this industry. Through observing the interchange of forces which shape the world, the enormous transformative power of the multinational corporation is understandable. Also, people will recognize that the global influence of the business would increase dramatically as they began their career.
Working for a world-class organization in the developing world, perfectly combines diverse professional interests of people who wish to work in a software industry. It also helps to afford the ability to gain strategic insight into the corporate world, simultaneously directly experiencing what a growing economy truly entails.

3.5 WORK ENVIRONMENT:

An environment of mutual learning is strongly encouraged, as most go beyond their duties to share their knowledge. Creative collaboration is highly motivating and is always welcome in the software industry. Not only a person working at the frontline of the IT industry is mapping industry’s strategic positioning in the global services industry, but they work with a range of international businesses and professionals in managing how IT affects our lives.


CHAPTER 4: EMPLOYMENT IN SOFTWARE INDUSTRY

4.1 SOFTWARE COMPANY JOBS

The software industry has developed the world over. This has called for higher employment opportunities in this sector. Some of the factors that have contributed to the expansion in software jobs in the world and then throw light on the software jobs in India in particular are:

1. Effect of Globalization on Software Company Jobs

With globalization, the restrictions imposed on the software companies to enter the global market have been removed. This has created an employment market for the IT sector that is purely international. The IT giants of US have expanded their services to other countries, thereby absorbing higher workforce. The skilled workforce is also eligible to apply as computer technicians in US and Canada.

2. Effect of Outsourcing on Software Company Jobs

Together with globalization, outsourcing has also played an important role in employment expansion in the IT industry. Outsourcing also requires expertise in IT. Again there are companies that are based in US but work with companies, which outsource and work with IT professionals working overseas. This is basically, a cost effective measure for companies that are unable to set up separate IT departments.

3. Software Company Jobs in India

It is estimated that the Jobs in Software Industry in India will reach the 1.5 to 2 million mark by 2010. This would imply a compound annual growth rate by 40%. This is in sync with the business expansion of the software services companies in India. The revenue growth of Wipro and Infosys by 40% and 36% along with its expansion in the workforce by 46% and 35% respectively proves this point.

It is expected that IBM and Accenture would add 15,000 more offshore India Software Company Jobs by next year-end. According to the AMR Research, the headcount requirement in the US IT sector would grow by 7 lakh workers phased out over the next five years. So, it is clear that since the IT employment in India is also booming, the new jobs created in US would be filled by India itself. Not only would that, about 8 lakh jobs be outsourced to India. Owing to this mass scale outsourcing US is predicted to suffer job losses in the IT sector.

Career growth depends on numerous factors beyond what a person does. It also depends on how well he/she does it, who he/she does it for (and their growth opportunities) and the cost of replacing and outsourcing what he/she do. On the last point, information management has been slow to adopt off shoring. And, of all technical tasks in information management, it is suggested that the necessary iterative and business-oriented process of building the end-user applications and interfaces may be the most difficult tier to offshore. Domestic outsourcing will, likewise, be difficult to do just for the data access layer. However, decisions do get made to offshore entire information lifecycle management (ILM) applications, such as data warehouses, and all layers can get caught up in that. Of course, that job stays onshore and peoples’ prospects don't necessarily dim when that happens – as long as they’re willing to work for one of the outsourcers.
As previously said, career growth depends on what a person does for a job. Whether he/she is fortunate or chose well, it sounds like he/she happens to be deploying the toolset of a company that is a leader in information management, and who will participate strongly in defining how information management is shaped in the next decade. Many end-user companies branch out within a software company's toolset, providing employees opportunities to broaden into other areas. Well-roundedness across the information management spectrum is good for a career and it seems IT companies would have some good tools to do that with.




CHAPTER 5: STRUCTURE OF SOFTWARE INDUSTRY

The Software Industry has emerged as one of the most important industries in the Indian economy contributing significantly to the growth of the economy. The Software Industry of India got a major boost from the liberalization of the Indian economy. India's software exports have grown at an annual average rate of more than 50% since 1991. The structure of the IT industry is quite different from other industries in the Indian economy. The IT industry of India is hugely dependant on skilled manpower. Primarily a knowledge based industry, the IT industry of India has reordered significant success due to the huge availability of skilled personnel in India.
The industry structure in the IT sector has four major categories. These are –

 IT services
 IT Enabled Services
 Software Products
 Hardware

5.1 IT SERVICES

IT services constitute a major part of the IT industry of India. IT services include client, server and web based services. Opportunities in the IT services sector exist in the areas of consulting services, management services, internet services and application maintenance. The major users of IT services are -
 Government
 Banking
 Financial services
 Retail and distribution
 Manufacturing

5.2 IT ENABLED SERVICES (ITES)

The services which make extensive use of information and telecommunication technologies are categorized as IT enabled services. The IT enabled services is the most important contributor to the growth of the IT industry of India. Some of the important services covered by the ITES sector in India are -

 Customer-interaction services including call-centers
 Back-office services
 Revenue accounting
 Data entry and data conversion
 HR services
 Transcription and translation services
 Content development and animation
 Remote education,
 Data search
 GIS (Geographic Information System)
 Market research
 Network consultancy

5.3 SOFTWARE PRODUCTS

Software products are among the most highly exported products from India. The software industry in India originated in the 1970s and grew at a significant pace in the last ten years. Between 1996-1997 and 2002-2003, the Indian software industry grew more than five times from 2630 crores to 13200 crores. During the same period software and service exports from India grew by almost twelve times.

5.4 HARDWARE

The hardware sector of the IT industry focuses on the manufacturing and assembling of computer hardware. The consumption of computer hardware is high in the domestic market. Due to the rise in the number of IT companies, sales of desktops, laptops, servers, routers, etc have been on the rise in recent years. Many domestic and multi-national; companies have invested in the computer hardware market in India.
Another categorization in the structure of India's IT industry is related to the market. There are two major market classifications - the domestic market and the export market. The export market, dominates the IT industry accounting for 75% of the revenue.




CHAPTER 6: FUTURE OF SOFTWARE INDUSTRY

6.1 INDIAN SCENARIO

2009 is looking a lot like 2002 in the software industry. Back then clients were cutting back, driving economies of scale and consolidating vendors. Decision-making moved away from business and IT managers to purchasing teams. The difference back then was western IT companies – the incumbents - suffered as Indian software industry benefited and took ground.
In 2009, the Indian IT companies are the incumbents and clients are scrutinizing all vendors and contracts. Senior executives at IT outsourcing companies need to take action now to make sure they aren’t the losers when the consolidation decisions get made.
So, how to be prepared? Start by looking at what happened in 2002. Purchasing departments at large clients used two metrics to make vendor optimization decisions – cost and quality. Cost is easy to compare but what about quality? Back then the decision makers seized upon CMMI as the standard of quality and quite honestly the Indian IT industry was only too pleased, as all the large players had already been appraised at CMMI Level 5 – the highest level achievable. The companies that enjoyed success in 2002 were those judged, according to the CMMI, as having the highest quality processes. In 2009 this focus on quality will remain just as critical; however, there needs to be a shift in the measure of quality.
As the industry moves towards more high level tasks, such as R&D and KPO (Knowledge Process Outsourcing) that puts the focus on the qualification and quality of the professionals doing the work. The quality of the talent and the workforce is the next key measure of quality. What is seen now is there is no measure of quality distinction offered by IT providers and therefore the only variable left is cost. In this scenario we run the risk of IT providers dropping pricing in order to survive. This will cause a long term earnings and investment gap in the industry. Dropping pricing today will take down long-term earnings and in order to minimize the impact to earnings, companies will reduce critical investments to remain competitive. There has to be a better way.
Benchmarking their talent to a global standard will be critical for organizations with a desire to become dominant in the industry. Benchmark and certify their talents against a global population. The process is rigorous but highly rewarding. Beyond a marketing edge, companies get rare insight into their talent pool, training processes and the deployment of their staff. By sharing the insights with their clients they collectively make better talent optimization decisions. They are now working with their clients at a more strategic level and proving themselves as a high quality partner.
According to leading reports, Indian software industry is set to achieve a turnover of $71.1 billion by the year 2009. The projected demand for trained I.T. professionals is estimated at over 400,000 per year. There is a clear imbalance between the demand and supply of IT professionals with the result that this sector offers one of the highest remuneration packages. The Internet is a new revolution that is sweeping the world. It promises to change the way we work, live, shop, communicate and entertain ourselves.

6.2 GLOBAL SCENARIO

Leading IT industry analyst firm Gartner Inc has highlighted 10 key predictions of events and developments that will affect IT and business in 2009 and beyond.
The predictions highlight areas where executives and IT professionals need to take action in 2009. The full impact of these trends may not appear this year, but executives need to act now so that they can exploit the trends for their competitive advantage.
"Selected from across our research areas as the most compelling and critical predictions, the trends and topics they address this year indicate a strong focus on individuals, the environment, and alternative ways of buying and selling IT services and technologies," said Daryl Plummer, managing vice president and Gartner Fellow, in a media release on Thursday.

The predictions that Gartner has made for the year 2009 focus on general technology areas rather than on specific industries or roles. These include:

1. By 2011, Apple will double its American and western European market share in computers: Apple's gains in computer market share reflect as much on the failures of the rest of the industry as on Apple's success. Apple is challenging its competitors with software integration that provides ease of use and flexibility; continuous and more frequent innovation in hardware and software; and an ecosystem that focuses on interoperability across multiple devices (such as iPod and iMac cross-selling).
2. By 2012, 50 per cent of traveling workers will leave their notebooks at home in favor of other devices: Even though notebooks continue to shrink in size and weight, travelling workers lament the weight and inconvenience of carrying them on their trips. Vendors are developing solutions to address these concerns: new classes of Internet-centric pocket able devices at the sub-$400 level; and server and Web-based applications that can be accessed from anywhere. There is also a new class of applications: portable personality that encapsulates a user's preferred work environment, enabling the user to recreate that environment across multiple locations or systems.
3. By 2012, 80 per cent of all commercial software will include elements of open-source technology: Many open-source technologies are mature, stable and well supported. They provide significant opportunities for vendors and users to lower their total cost of ownership and increase returns on investment. Ignoring this will put companies at a serious competitive disadvantage.
Embedded open source strategies will become the minimal level of investment that most large software vendors will find necessary to maintain competitive advantages during the next five years.
4. By 2012, at least one-third of business application software spending will be as service subscription instead of as product license: With software as service (SaaS), the user organization pays for software services in proportion to use. This is fundamentally different from the fixed-price perpetual license of the traditional on-premises technology. Endorsed and promoted by all leading business applications vendors (Oracle, SAP, Microsoft [ Images ]) and many Web technology leaders (Google, Amazon), the SaaS model of deployment and distribution of software services will enjoy steady growth in mainstream use during the next five years.
5. By 2011, early technology adopters will forgo capital expenditures and instead purchase 40 per cent of their IT infrastructure as a service: Increased high-speed bandwidth makes it practical to locate infrastructure at other sites and still receive the same response times. Enterprises believe that as service oriented architecture (SOA) becomes common 'cloud computing' will take off, thus untying applications from specific infrastructure.
6. By 2009, more than one-third of IT organizations will have one or more environmental criteria in their top six buying criteria for IT-related goods: Initially, the motivation will come from the wish to contain costs. Enterprise data centers are struggling to keep pace with the increasing power requirements of their infrastructures. And there is substantial potential to improve the environmental footprint, throughout the life cycle, of all IT products and services without any significant trade-offs in price or performance.
In future, IT organizations will shift their focus from the power efficiency of products to asking service providers about their measures to improve energy efficiency.
7. By 2010, 75 per cent of organizations will use full life cycle energy and CO2 footprint as mandatory PC hardware buying criteria: Most technology providers have little or no knowledge of the full life cycle energy and CO2 footprint of their products. Some technology providers have started the process of life cycle assessments, or at least were asking key suppliers about carbon and energy use in 2007 and will continue in 2008.
Most others using such information to differentiate their products will start in 2009 and by 2010 enterprises will be able to start using the information as a basis for purchasing decisions. Most others will start some level of more detailed life cycle assessment in 2009.
8. By 2011, suppliers to large global enterprises will need to prove their green credentials via an audited process to retain preferred supplier status: Those organizations with strong brands are helping to forge the first wave of green sourcing policies and initiatives. These policies go well beyond minimizing direct carbon emissions or requiring suppliers to comply with local environmental regulations.
For example, Timberland has launched a 'Green Index' environmental rating for its shoes and boots. Home Depot is working on evaluation and audit criteria for assessing supplier submissions for its new EcoOptions product line.
9. By 2010, end-user preferences will decide as much as half of all software, hardware and services acquisitions made by IT: The rise of the Internet and the ubiquity of the browser interface have made computing approachable and individuals are now making decisions about technology for personal and business use.
Because of this, IT organizations are addressing user concerns through planning for a global class of computing that incorporates user decisions in risk analysis and innovation of business strategy.
10. Through 2011, the number of 3-D printers in homes and businesses will grow 100-fold over 2006 levels: The technology lets users send a file of a 3-D design to a printer-like device that will carve the design out of a block of resin. A manufacturer can make scale models of new product designs without the expense of model makers. Or consumers can have models of the avatars they use online.
Ultimately, manufacturers can consider making some components on demand without having an inventory of replacement parts. Printers priced less than $10,000 have been announced for 2008, opening up the personal and hobbyist markets.





CHAPTER 7: SOFTWARE INDUSTRY MARKET

The financial crisis is hitting industries across the globe. As a result, the financial industry and other affected industries will clearly spend less on software licenses in 2009 in most regions. Instead of making ad hoc interpretations of stock prices and the recent revenue announcements of individual vendors, Forrester has identified some key trend indicators to measure the agility of the software industry around innovation, M&A, and partnership activities. While this report sets the initial scene, a follow-up report in 2009 will provide an impact analysis of recent developments. Until then, we will explore the tactics that vendor strategy professionals need to follow to prepare for a potential tech depression.
The software industry in emerging markets has some special characteristics compared to established markets. Software firms in emerging markets offer mainly services instead of selling their own products. Bigger companies outside the emerging markets are also moving parts of their functions to emerging markets in hopes of e.g. cost savings. These big companies from outside can cause problems for the local companies.
Many software companies have partnered or are contracting with multinational companies which are outsourcing/off shoring parts of their organizations. Software exports can be split to three categories: On-site consultancy - software professionals go to the client's site, offshore development - software done in the emerging market for the client and a mix of these two. Some companies like Wipro in India are offering services in and out of their local markets.
Product development typically is higher in the domestic market when comparing to exports, but services still account for most profit. Product development requires more financing when comparing to services. China is a good example of an emerging market which is highly focused in developing products to domestic markets.
Our market research reports on Software industry provide the clients with all-encompassing information to help them at every stage of their business cycle.
Our market experts use sophisticated tools to examine the market and bring out the most intensive research reports on software market. We prudently evaluate the software market and give exhaustive data and analysis covering Software Outsourcing, Software Services and Solutions, Enterprise Software Market, Entertainment Software Market, and Software Piracy.
We constantly track the software market to understand the effect of recent changes on the long-term prospects of the market and support clients to make strategy formulation or benchmarking.




CHAPTER 8: SOCIO-ECONOMIC FACTORS IN SOFTWARE INDUSTRY

Companies that effectively manage environmental, social and governance factors may be better equipped to achieve and retain market leadership, the managing director of Goldman Sachs International said today at the United Nations.
Presenting his company’s first environmental, social and governance investment framework, Goldman Sachs International Managing Director Anthony Ling told a press briefing in New York that these factors had become prominent because of the “changing competitive landscape for industry”. Consumers were taking into account these factors “as never before,” the Internet had ushered in an era of unprecedented communication and more than 3,000 non-governmental organizations (NGOs) were registered with the UN. This had “increased the need for transparency” for corporations, Mr. Ling said.
A weak performance in the environmental, social, and governance area means “you are going to lose competitive advantage, and this will impact on your stock performance,” and more investors were taking into account such factors when picking up stocks.
In 2005 Goldman Sachs set up a dedicated team to measure company performance against those factors, covering sectors such as energy, pharmaceutical, insurance, banking and finance. “The initial signs are very encouraging, and corporations are adopting new practices,” he said.
Eco-friendly companies such as recycling and nutritional foods were doing particularly well, and the alternative energy industry had shown a five-fold growth in the last three years, which resulted in significant rises in companies’ stocks.
But the process of fully incorporating these values in company practices could take five to seven years, Mr. Ling said. He also warned that there was no rigid, one-to-one correlation between adopting such values and economic performance.
As part of its research framework, the Goldman Sachs team used the principles of the UN Global Compact, which engages companies worldwide to subscribe to 10 universal principles on human rights, labour rights, the environment and the fight against corruption. More than 3,100 businesses from at least 120 countries have so far subscribed to the Global Compact, making it the world’s largest voluntary corporate citizenship initiative.
Global Compact Executive Director Georg Kell said the engagement and responsibility of Compact subscribers was increasingly paying off. More than 1,000 Compact participants from 120 countries would take part in the second Global Compact Leaders Summit in Geneva on 5 and 6 July, which would “try to establish the business case for engagement,” Mr. Kell said.
The summit would be the largest gathering ever held by the UN on the issue of corporate citizenship, he said, featuring an international roster of business leaders, government ministers and heads of civil society.
The Global Compact sought to make global markets more stable through companies adopting the 10 principles as a benchmark for action, Mr. Kell stressed. “As business goes global, the need to manage risks is increasingly understood. Our goal is to make global markets more stable and more inclusive.”
Socio-economic conditions, such as the unemployment rate or the availability of certain types of jobs in a particular locality, are factors that exist in society which are outside the context of the individual with the disability. They affect groups or populations living in regions or provinces, or the country as a whole, and may constitute a barrier to work.
Similarly, factors such as the lack of child care or elder care, family responsibilities or preferred working hours are also not to be considered in a CPP disability determination.





CONCLUSION

The credit goes to technical young people and English-speaking scientific professionals for the success in India's software industry. Presently for further strengthening the industry, the Government has stepped forward with more qualitative institutes.
The impact of software cuts across all sectors of the economy, and the progress of other sectors will, in turn, spur further growth of the software industry. Strength in software (both knowledgeable software professionals and a software-literate workforce) has become an important factor in foreign direct investment. It is also now a major component of modern industrial and commercial infrastructure and government administration. Finally, the software is the implementation vehicle for the major social programs such as distance learning, telemedicine and online cultural offerings.
While the creation of effective software industry support policies is complicated by this broad ranging impact on business, government and the public the bottom line is that support of the software industry in and emerging economy is likely to be an integral component of the social and economical agenda. Every country has to meet a new minimum knowledge standard that includes software-literate workforce, and enough of a software industry to make the country a credit participant in the global knowledgeable economy.