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In 2003, the top Indian software exporters were Infosys, Tata consultancy services, Wipro, Satyam and HCL accounting of nearly 35 percent of the total software exports. From the Indian perspective the top software exporters acted as brand ambassadors for the whole IT industry in India. These firms soon moved close to their clients in US, UK, Australia etc., to improve their client relationship and develop more business. By this time most of the Fortune 500 companies had their IT requirements outsourced to India; India was now growing and the market maturing fast (Thatchenkery et al., 2005).

Government Acts and Policies

The Indian government provided great support to the Indian IT industry since the beginning. Indian government had realized that the sector had excellent potential and could be developed if considerable investments were made. Indian government encouraged foreign associations by offering tax breaks and other financial and non-financial incentives to multinational investors in software exports (Tessler et al. 2003) as a result almost all major IT firms and many other leading multinationals have set up their software subsidiaries in India. Government had helped deliver infrastructure to the clusters, as mentioned in the previous section, assuming that clusters enables rapid exchange of information and knowledge, like best practices and market opportunities. Government also improved the linkages by offering legislation acts to meet global standards. For example, India has passed increasingly strong anti-piracy/copyright legislation for software in 1984, 1994 and 2000 (Heeks and Nicholson, 2004).

In 1997, the Indian government, after getting good returns of over $ 1 billion from the software sector, was determined in developing this sector into a major industry and set up the National Taskforce on Information Technology and Software Development whose aim was to ‘formulate the draft of a national informatics policy'. The Taskforce was to produce action plans on software and hardware sector and initially made 108 recommendations (Kambhampati, 2002). The ICT sector had several problems, including inadequate quality and skills of graduates, rising salaries and weak infrastructure, which results in frequent power shortages, low level of PC use and internet penetration, low level of domestic technology development, limited bandwidth, inadequate availability of venture capital and limited domestic market for knowledge based technology and products (Parthasarthy and Joseph, 2002). Recognizing the significance of infrastructure and human resources in the development of the software industry, the taskforce aimed to improve computer literacy by encouraging use of computers and adding IT to education. They also initiated high-speed datacom links in this industry to meet their needs in the first instance.

The Indian government also made number of policies to develop the software industry in India, especially exports. In 1981, government introduced the Software Export Policy which allowed the firms to import hardware to write software. It also provided the facility to import ‘loaned' co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。