英语论文网

and level 3 of the East Asian Model. They have their own production facilities with equipment mainly purchased from foreign suppliers. Some firms, however, are able to design the products on their own indicating that a small set has achieved level 3 of the latecomer industrial development model (Vaidya et al, 2007).

China thus is one of the good examples of the East Asian latecomers. In a paper by Vaidya n Benette (2007), there is a clear demonstration of shift of industrial export from low technology industries like textile industry to high tech and other heavy metal industries like telecommunications industry and steel industries. However, these are all manufacturing sectors and the Indian IT industry is a service sector and the developments in the service sector might be a little different from the manufacturing sector as we shall see in the next section.

Indian IT industry

Introduction

The IT industry in India has seen a major boom in the last two decades and made considerable contribution towards its economic growth. A huge number of firms located at Bangalore, Chennai, Hyderabad, Kolkatta, New Delhi and Pune have been providing software services. Indian IT firms are known for their impeccable quality consciousness and huge cost advantage in comparison to the western countries contributing to the favourable factor endowments. (Kambhampati, 2002) Having entered the industry in the 1970s and early 1980s India had gained the first mover advantage, when competition was limited, Indian companies could break the ‘comfort barrier' with their clients and today, most people know they can get high quality technical people from India. Although the domestic market for IT was quite small, the exports could grow, as the number of available skilled English-speaking labours was quite high. The industry being a technology driven one, most business was attracted through outsourcing of the work. Formation of IT clusters at Bangalore, Delhi, Chennai and Hyderabad provided competitiveness and also support to IT industry (Thatchenkery et al., 2005).

Indian firms have long utilised the cost and the profit advantage, but they still lack the capability to innovate complex and high technology software products. The Indian IT firms could be compared to the third level of the East Asian model as the Indian IT firms have done well to shift from onsite to offshore working and from low level coding work to next level of designing and project management rather than importing all high end applications from developed nations (Arora & Gambardella 2004).

history

The sector began in Mumbai in 1968, when Tata Consultancy Services (TCS), the oldest firm in this industry in India was set up. It then grew relatively steadily until the mid-1980s when it began to take off (Kambhampati, 2002). Talent was attracted into software exports in India due to the permanence, status, returns and other rewards this segment offers (Tessler et al., 2003) and, by contrast, because of the fewer or weaker remuneration and opportunities offered to labour in other industries, including domestic-orientated software work (Arora & Gambardella, 2004; Heeks and Nicholson, 2004).

本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。