Information Technology & Software: Policies, Progress, HR Supply & Quality and Economic & Social Impact By Dr T.H. CHOWDARY Director: Center for Telecom.

Information Technology & Software: Policies, Progress,

HR Supply & Quality and

Economic & Social Impact

By

Dr T.H. CHOWDARY Director: Center for Telecom Management and Studies

Chairman: Pragna Bharati (intellect India )Former: Chairman & Managing Director

Videsh Sanchar Nigam Limited &Information Technology Advisor, Government of Andhra Pradesh

T: +91(40) 6667-1191/ 2784-6137(O) 2784-3121®F: +91 (40) 6667-1111, 2789-6103

[email protected]@satyam.com

Key-note address @ Montessori Mahila Kalasala, Vijayawada: 16 Feb 2008

THC_CTMS S375_Feb'08 2

ICTs as Engines of a New Society

• ICTs facilitate the emergence and sustenance of a information/knowledge society where Men think and machines work.

• Like Electricity, Highways and Rail Roads and automobiles facilitated the birth & growth of industrial societies.

• Lenin said Electricity plus Education is socialism.


Why we picked up ICTs First• We “ evangelized” ICTs ( and software)• Firstly as immediate relief to unemployed hordes of engineering and

science ( and commerce & Arts) graduates.• Building on human resource, we moved into e-governance and

further into every economic, managerial & social activities• A connected country, communicating people; and empowered

citizenry. * Knowledge will forever govern ignorance and people who mean to

be their own governors must arm themselves with the power which knowledge gives

– James Madison, President of US(Inscription at the entrance to the Library of

Congress)


Inspiring Visions

• We will produce electricity so cheap that only the rich can afford to burn candles”

- Thomas Alva Edison• To get to know each other, on a world-wide scale is

the human race’s most urgent need to-day. And once this mutual familiarity is established there is some hope that we may all become aware of the common humanity underlying the differences in our local manners and customs.

- -Arnold Toynbee ( at the time of launching TELSTAR in 1963)


Inspiring Visions (3)

Ghar Ghar mein radio(a radio in every home)Gaon Gaon mein telephone - 1978(a telephone in every village)

- Dr T.H.CHOWDARY“We will make telephoning cheaper than a post card

-Dr T.H.CHOWDARYHaath Haath mein telephone( a telephone in every one’s hand)Gaon Gaon mein Internet – 1997( An Internet Kiosk in every village)

-Dr T.H.CHOWDARY


Policies


Policies (1)

• IT & Software businesses were born after the demise of Nehruvian Socialism (= Permit-Licence-Quota raj) in 1991 & so are thriving.

• Computers & Computerisation were

“un-socialist”; “American devils”; “enemies of workers” - Leftists & Progressives.

• During the Janata Government; George Fernandez drove out American Devils “IBM” & Coca-Cola ……


Policies (2)

• C.M.C was founded in 26 Dec 1975 as a PSU. It took over maintenance & operations of IBM’s equipment in government offices – Hyderabad as Head Quarter.

• ECIL was tasked to produce computers.

• 1st Indigenous design & production by TIFR Narsimhan


Policies (3)

• Computers were being selectively used since 1950 in government departments – Indian Statistical Institute; Census of India ; Meteorological Department; 217 in the whole of India by 1974.

• Communists, their Trade Unions; their fellow-traveling intellectuals have been opposing computerisation; their unions in Banks were militantly opposed.

• Rajiv Gandhi boldly spoke for computer use in government; encouraged & directed their use by all officers in Delhi.


Policies (4)

• National Informatic Center (NIC) was set up in Delhi in the year 1976-’77, Connect all District Head Quarters; State capitals with NIC by VSATs; computerise all data and exchange & update it; First data network (NICNET) with video –conferencing (490 sites); 3000 VSATs connecting as many towns /cities

• A great resource for Planning Commission & Planning Depts of all States


Policies (5)

• NIC personnel posted in all state capitals; e-MIS• Various GO I/GOI’s networks- R&D, Agriculture,

RBI, SBI, Stock Exchange…..• First software export venture -

Texas Instruments (TI) in Bangalore with its own satellite link to the US in 1986-’87

• First Indian private company to have a satellite link to the US for /software export (Satyam - John Deere: Moline, Illinois; USA) – “Little India project


Policies (6)

• Tax holiday; STPs; exemptions from Inspector Raj ; Internet-demonopolisation ( 1st Private Sector Internet Cy-Satyam- promoted SIFY – 1999

• I.T Vision – A P moves GOI

• NASCOM


NDA Govt – 1998 May (1)

• PM’s National Task Force on IT & SW

• Sri Chandra Babu Naidu as Co-Chairman & myself were Members

• Our vision adopted by India

• 108 Recommendations w/in 4 months in the 1st Report; accepted & ordered within two months.

• End to monopoly on Internet, Telecoms


NDA Govt – 1998 May (2)

• STPs; Customs Duties slashed, Tax-holiday for 10 Y;

Export target $ 50 bln by 2010; 50 IIITs on PPP; End of

Inspector Raj for ICT Cos: huge increase in Engg

Colleges; e-governance; e-commerce; e-learning;

SWANs; IT cities (like HITEC in HD), land-grants; ICT

depts. in states; FDI inflows.

• Chandrababu, myself, N Seshagiri, N Vittal; Vajpayeeji,

Arun Shourie …………

• 1997-2004 Golden period for IT & SW Cos boom


State Government’s Policies

• States are competing to attract SW companies from all over the world and so are coming out with facilitative and supportive policies

• Under their own initiative as in southern States and under the advice of the Union government many states have extensive e-governance and e-seva policies & programs

• 11th Five-Year Plan provides about Rs.12,000cr to States to implement e-governance

• Center for Good Governance and Center for e-governance established in Hyderabad as all India resources.

• NASSCOM as the all India non-governmental trade body to propose and get IT policies permitting India the world’s preferred country for location of ICT development and IT and SW services for the global economy


Human Resources


India’s Knowledge Workers

• 400,000 Engineers• 70,000 MBAs; 70,000 MCAs• 10,000,000 in the ‘varsities• Export education – NIIT in 50 countries; English,

French, Spanish, Arabic, Russian, Chinese…• 10% only recruit able & ready to work• So “Finishing Schools” are coming up.


Human Resource

• (20 to 25)% are ICT graduates

• But employables : 10% readily;

• Another 10% with some training

• Rural & Minority colleges : Despair

• Exam talent: No knowledge talent

• EAMCET, AICTE : Must be wound up ( eg: Tamilnadu),


Brand India

• 25% of companies started in the USA are by Indians• 25% of ICT professionals in the US are Indians; of them

25% are from A P; of these 80% are from Andhra & R’seema

• 35% of Microsoft’s Associates are Indians; • 1/3rd from Andhra Pradesh• [20 to 25]% of S&T persons in NASA, INTEL, Motorola,

QUALCOM, etc. are from India.• More than 200 of the FORTUNE 500 companies have

R & D centers in India [HY,BG,PN,CN….] Chinese companies HUAWI & ZTE too are here

• Indian CEOs for many MNCs


Ten-Year Trend in Engineering and Technology PhD Degrees in the United States, China and India

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

9,000.00

10,000.00

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

Academic Year

Gra

du

ates

USA China India

Source: The India Economy Review, 30 Sept 2007, Vol.4; www.iipm.thiktank.com


Ten-Year Trend in Engineering and Technology Master’s Degrees in the United States, China and India (Actual and Estimated Data)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

Academic Year

Gra

du

ate

s

USA (Engr/Techl) China (Engr/Techl) India(Engr/Techl) India(MCA)

Source: The India Economy Review, 30 Sept 2007, Vol.4; www.iipm.thiktank.com


Progress


USD Billion FY 2004 FY 2005 FY 2006 FY2007 FY2008 E

IT Services 10.4 13.5 17.8 23.5 31.0

-Exports 7.3 10.0 13.3 18.0 23.1

-Domestic 3.1 3.5 4.5 5.5 7.9

ITES-BPO 3.4 5.2 7.2 9.5 12.5

-Exports 3.1 4.6 6.3 8.4 10.9

-Domestic 0.3 0.6 0.9 1.1 1.6

Engg Services & R&D, SW products

2.9 3.8 5.3 6.5 8.5

-Exports 2.5 3.1 4.0 4.9 6.3

-Domestic 0.4 0.7 1.3 1.6 2.2

Key Highlights of the IT-ITES sector performance in FY 2007-08 (1)

N.A.: Not available

Note: Figures may not add up due to rounding off

Source: NASSCOM


USD Billion FY 2004 FY 2005 FY 2006 FY2007 FY2008 E

Total Software and Services Revenues

Of which, exports are

16.7 22.5 30.3 39.5 52.0

12.9 17.7 23.6 31.3 40.3

Hardware 5.0 5.6 7.1 8.5 12.0

-Exports n.a 0.5 0.6 0.5 0.5

-Domestic n.a 5.1 6.5 8.0 11.5

Total IT Industry

(including Hardware)

21.6 28.2 37.4 48.0 64.0

Key Highlights of the IT-ITES sector performance in FY 2007-08 (2)

N.A.: Not available

Note: Figures may not add up due to rounding off

Source: NASSCOM


Software Exports

734 1,085 1,750 2,650 3,9005,500 6,800 8,000

10,00012,500

16,560

23,000

31,000

40,000

1995 1996 1997 1998 1999 2000 2001 24-Jun

2003 2004 2005 2006 2007 2008


Employment in Indian IT sector*,’000

0

500

1000

1500

2000

2500

3000

2000 '01 '02 '03+ '04+ '06+ '07+

Call-centers (ITES) Software Multinational operations

(* Years ending March; + Estimate@ break-up: NA)


Hyderabad’s & A P’s Surge (1)

• Software companies in Hyderabad 1248

• Software companies in rest of A P 30

• Exports from HYD: Rs. 18,294 Cr

• Exports from Visakhapatnam: Rs.245 Cr

• Exports from Vijayawada: Rs. 42 Cr

• Exports from Tirupati: Rs. 1 Cr


Hyderabad’s & A P’s Surge (2)

• 2008 Exports: Rs.24,000 cr

• Employees 187,450 (31.3.2007)– 200,000 Dec 2007– BPO & Call center companies in HYD 410;– Employees 72,000– Revenue Rs.6,500 cr


Indian companies becoming MNCs(TCS & Satyam whose FELLOW I am)

No. of employees

2006-07 sales in bln $

No. of countries where they operate and no. of offices

No. of cities where they operate in India

Founded when

TCS

(The first largest software company)

One lakh + 4.3 bln $

($5.5 bln)

• More than 50 countries • more than 175 offices across the globe.

17 cities

Over 85 offices

1968

Satyam Computer Service Ltd.

(The fourth largest software company)

42,000 + 1.46 bln $

($$2.0 bln)

60 + ( 25 time zones)

31 1987


Foreign Companies Engaging Indian intellect (1/2)

• Motorola – 1700 employees• 40% of software in its mobiles developed in

India • The Internet browser and multi-media

messaging system conceived and developed for 3G and GSM by Indian engineers working for foreign companies.

• The software going into US cars is being developed here in India .


Foreign Companies Engaging Indian intellect (2/2)

• GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai; A 2nd one in Hyderabad with 2000 researchers

• GE put in $ 80 mln in the Bangalore R&D facility• GE’s Bangalore R&D field for 260 patents in the USA (37 already

approved)• Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr) • Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr • Gorbachev went to USA to recommend Moscow as Bangalore’s rival!• An Indian retained does the work of 2 or 3 Europeans;

does not take 6 weeks of holidays & costs one-fourth


Indian Companies Foray Abroad

(1)• VSNL acquired FLAG• Reliance Information acquired TYCO• Tatas acquired Tetley• Mittal acquired Arcelor• Dr Reddys Labs acquired a German Pharma• Ranbaxy, SIFY, SATYAM,

INFOTECH;...qcquired companies in the USA, EU

• In 1996 Indian companies acquired foreign companies @ Rs. 90,000 cr.


Indian Companies Foray Abroad (2)

• Our companies employ Britons, Americans, Malaysians, Chinese, Russians, Hungarians, Swedish....

• We are establishing Universities/colleges abroad

• NIIT teaches in 52 countries in French, Spanish, Russian, Chinese and Arabic


Economic & Social Impacts


Economic Impact (1)

• Prices fell by 90% and are still falling adding to India’s competitiveness

• India’s global (mainly US, Europe, Australia, Japan) broadband increased enormously & extended inland to II tier towns

• Thousands of BPO; KPO; ITeS & e-Media Businesses are born


Economic Impact (2)

• Job Opportunities for the hitherto educated unemployed increased fantabulously – well paid [10 times the per capita income] Over 2.0 mln engaged growing 20/25% p.a.

• Huge demand for University education-[to go up from < 8% to 15% in 11th plan 2007-2012


Economic Impact (3)

• Exports of IT; ITeS; BPO, KPO growing by 30% p.a.; would go up from $ 40.0 bln in 2007 to $ 60 bln in 2010

• Indian employees of foreign companies (IBM, GE, EDS, Deloitte, Cap Gemini, CSC, Accenture...) are tens of thousands

• Indian companies are recruiting foreign talents-Global bench-marking of talent to sensitise Indians to Excellency

• Indian companies are acquiring BPOs in EU; US; Hungary; Philippines, Sri Lanka, Vietnam...


Intellectual Impact

• Intellectual property created by Indian professionals (R&D) for foreign companies (Huawi, Motorola, Lucent, QUALCOM, CIT-Alcatel, Ericsson, Nokia

• Indians breaking out to launch their companies – products (Chip design embedded s/w; GPS/GIS;....)

• Foreign Universities enter India; Domestic companies became aware of quality

• 175,000 Indian studetns are studying in foreign Universities (USA, Australia, UK, Singapore, Germany, Sweden,....)


Social Impact (1)

• Islands of highly paid boys and girls

• Money (emoluments) as driver/motivator

• Individualistic uncaring for family/Relations

• De-Indianised, culturally alienated (Indian only in colour & blood but Americanised.


Social Impact (2)

• Vulgarity among the young increases– Cell-phone talk while walking– Cell phone talk in lifts & while driving– Cell phone talk in waiting halls of airports, rail-

stations; buses and trains– Cell phone talk by husband & wife during

morning walk– Cell phones on in auditoriums, cinema hall,

classroom


Social Impact (3)

• Virginity no longer a virtue• Divorces going up [9 times in Delhi; 2 times in Chennai,

Kolkata – 30% of divorce filings by women]• First Marriage is a “trial Marriage”!• Children wanted late or not at all• Children’s nurture not at home but entirely in School

[from age 3 to 18] – literature, history, ethics neglected • Modesty, thrift, scholarship, fine arts are de-valued• Rights, rights for everything but no duties• Self-centeredness (party because of ½ child choice)


Social Impact (4)

• Wife-Husband tending toward nominal/notional relationship

• Old parent care crumbling• High-spending consumerism • Flats, supermarkets, “International”

Schools (expensive) boom; Health Care, Insurance, Retail, tourism, Eateries, autos boom, boom

• Migration of the highly talented going up


Social Impact (5)

• Idiotisation of the young (and old too) by > 250 TV channels, 24 hrs/day showing trash

• Igniting the intelligence & Inquisitiveness of the young-neglected

• Coarseness of behaviour, deportment

• Fraud, fake, violence on the increase


Social Impact (6)

Net Abuse (1)(26.08.2007 Pioneer)

• Social networking sites eg. ORKUT• Cyber Space coined by William Gibson

in 1984 in his box Neuromancer• Netizens- Online Community; has

millions of groups• Social networking sites eg ORKUT. The

top 10 sites had a 47% growth in Membership in 2006-07


Social Impact (7)


• Cyber crimes are easier than terrestrial crimes– Are easy to learn how to commit– Require few resources relative to potential damage– Can be committed in a jurisdiction w/o being physically

present in it– Are often not clearly illegal– India has the 3rd largest ORKUT population in the

world [after Brazil & USA]– In Y2006 Mumbai High Court proceeded against one

social networking site for allowing hate campaign against India; another against one religion etc


Social Impact (8)


– ORKUT is India’s most visited Portal– Can find long lost childhood friend (s)– Evil acts like

• Photo-morphing that led to depressed girls• A rave party in Pune (indecent)• Leading to deterioration of morals in society

Message to the Young


Message to the Young (1)

• IITs, IIMs and some other institutions have established a global brand for India – Land of the Talented

• When I was in China, Portugal, Greece I noted them equating India with IT & software !

• India now recognised as the source of best economists, financial analysts, mangers, scientists and engineers.

• Ageing USA “ imports” Indians for brain-work; it “imports” Mexicans for menial work & so keeps up to hegemony



• Europe does not import Indian S&T and other Profs; it imports culturally incompatible Muslims for menial work; so it suffers decline

• USA wants India as an ally; Indian Nurses, Indian Truck drivers, accountants, lawers..

• BPO, KPO help us move up the value chain. Indian CEOs for the world top companies.

• Hinduism alone values and promotes cultural an d religious & radial diversity

• Abrahamic religions are mutually annihilative and predatory on others

• Intellectuals of the world look to India for all values (Vedas, Upanishads, Arth Sastra, Mahaveer & Ramayana)



• Our economy is booming inspite of anti-Bharat government of alienated persons/parties ( 44 of them in the Prlt.)

• By year 2050 the world order will be China, India, America, Russia, Brazil

• We have to equip ourselves to be a super power economically, militarily, intellectually and spiritually.

• Read what the world’s noblest & wisest think of us.


BHARAT MAHAN! (1)

(Intellectuals estimate of India)

India is the only country which never

invaded any foreign country

“India conquered and dominated China culturally for 20 centuries without even having to send a single soldier across her border”.- HU SHIH, Former Ambassador of China to USA


“We owe a lot to the Indians, who taught us how to count,

without which no worthwhile scientific discovery could have

been made.”

-ALBERT EINSTEIN

“In the whole world there is no study so beneficial and so

elevating as that of the Upanishads. It has been the solace

of my life; it will be the solace of my death”.

-SCHOPENHAUER

BHARAT MAHAN! (2)


Bharat Mahan! (3)

• World’s first Universities:

• Takshasila – 800 BC; 10,000 foreign

students, 52 subjects

• Nalanda & Vikrama Sila


“If I were to look over the whole world to find out the country most richly endowed with all the wealth, power and beauty that nature can bestow-in some parts a very paradise on

earth - I should point to India. If I were to asked under what sky the human mind has most fully developed the choicest

gifts, has most deeply pondered on the greatest problems of life, and has found solution of some of them which well

deserve the attention even of those who have studied Plato and Kant - I should point to India. And if I were to ask myself from what literature we here in Europe, we who have been nurtured almost exclusively on the thought of Greeks and

Romans, and of one Semitic race, the Jewish, may draw that corrective which is most wanted in order to make our inner

life more truly human, a life not for this life only, but a transfigured and eternal life -- again I should point to India”.

-MAX MULLER

BHARAT MAHAN! (4)


“India was the motherland of our race, and Sanskrit the mother of Europe’s

languages; she was the mother of our philosophy; mother, through the Arabs, of much of our mathematics; mother, through

the Buddha, of ideals embodied in Christianity; mother, through the village

community, of self-government and democracy. Mother India is in many ways

the mother of us all”. -WILL

DURANT

BHARAT MAHAN! (5)


“Whenever I have read any part of the Vedas, I have felt that some unearthly and unknown light illuminated me. In the great teaching of the Vedas, there is no touch of the sectarianism. It is of ages, climes, and

nationalities and is the royal road for the attainment of the Great Knowledge. When I am at it, I feel that I am under the spangled

heavens of a summer night”.

-HENRY DAVID THOREAU

BHARAT MAHAN! (1)


Bhaskaracharya (5th century AD) calculated the time taken by the earth to orbit the sun

hundreds ofyears before the astromer Smart. Time taken by earth to orbit the sun:

365.258756484 days.

The art of Navigation was born in the river Sindh 6000 years ago. The very word Navigation

is derived from the Sanskrit words NAV Gatih. The word navy is also derived from Sanskrit ‘Nou’

BHARAT MAHAN! : Science & Technology


Baudhayana first calculated the value of pi, and he explained the concept of what is known as the Pythagorean Theorem. He discovered this in the

6th century long before the European mathematicians.

Algebra, trigonometry and calculus came from India. Sridharacharya propounded quadratic

equations in the 11th century.



The largest numbers the Greeks and the Romans used were 106 whereas Hindus used numbers as big as 1053 with specific names as early as 5000 BCE during the Vedic period. Even today, the largest used number is Peta:

1015.

The place value system, the decimal system was developed in India in 100 BC.

India invented the Number System.

Zero was invented by Aryabhatta.



Sushruta is the father of surgery, 2600 years ago he and health scientists of his

time conducted complicated surgeries like cesareans, cataracts, artificial legs,

fractures, urinary stones and even plastic surgery and brain surgery. Usage of anesthesia was well known in ancient

India. Over 125 surgical equipment was used. Deep knowledge of anatomy,

physiology, etiology, embryology, digestion, metabolism, genetics and immunity is also found in many texts.



Ayurveda is the earliest school of medicine known to humans. Charaka, the father of

medicine consolidated Ayurveda 2500 years ago. Today Yoga and Ayurveda are fast regaining its

rightful place in our civilization.

The earliest reservoir and dam for irrigation was built in Saurashtra. According to Saka King Rudradaman I of 150 CE a beautiful lake aptly

called ‘Sudarshana’ was constructed on the hills of Raivataka during Chandragupta Maurya’s time.



Socialism: Wise thoughts from Sri Nani Palkhiwala

• Socialism as practiced in India has been a fraud: Our brand of socialism did not result in transfer of wealth from the rich to the poor but only from the honest rich to the dishonest rich

• The sleeping sickness of socialism is now universally acknowledged – but not officially in India… The public sector enterprises are the black holes, the money guzzlers and they have been extracting and exorbitant price for India’s doctrinaire socialism.



• A law-suit once started in India is the nearest

thing to eternal life ever seen on this earth….

• History will record that the greatest mistake of

the India Republic in the first 50 years of its

existence was to make less investment in human

resources-education, family planning, nutrition

and public health-than in brick and motor dams

and factories.



• Over taxation corrupted the national character overtly. The nation survived only because the tax system continued to breathe through loopholes and the economy used to breath through window of tax evasion.

• We have too much Government and too little administration; too many laws and too little justice; too many public servants and too little public service, too many controls and too little welfare.

• India has a deficiency of leaders with noble minds - Dr APJ Abdul Kalam


• Ill fares the land where ‘welfare’ is distributed before wealth is created

• You cannot bring about prosperity by discouraging thrift • You cannot strengthen the weak by weakening the strong• You cannot help the poor by destroying the rich• You cannot establish sound security on borrowed money• You cannot keep out trouble by spending more than you

earn• You cannot build character and courage

by taking away man’s initiative and Independence • You cannot help men permanently by doing for them

what they can do for themselves -Abraham

Lincoln


Finally

• Be the most accomplished students, all employable, enlightened, ignited

• Read and know your true history how Bharat resisted and eventually triumphed over aliens

• Samskrit, Dharma and Bharatiyata and our samskriti bind us together.

• Religion and language don’t bind as much as culture does.


Remember & revere (1)

• Bharat, the most richly endowed country• Valmini, Vyasa,Kalidasa• The ( un-named) Vedic Seers• Sri Rama, Buddha, Mahavira, Sankara, Nanak• Vidyaranya, Samarth Ramadas• Kautilya (Chanakya),Sri Krishna• Swami Vivekananda, Lokamanya Bala

Gangadhar Tilak, Sardar Patel, Dr. Ambedkar


Remember & revere (2)

• Bhaskara, Aryabhatta, Baudhayana, Sridhara, Charaka, Sushruta

• Taksha Sila, Vikrama Sila, Nalanda• Your Mother, Father, Guru• Sahanaavavtu, sahanau bhunaktu,

sahaveeryam karavaavahaih , maa vidvishavahaih

• Realise the truth“Aham Brahmaasmi

Tat tvam asi”


Dhanyawad:

Thank You

Information Technology & Software: Policies, Progress, HR Supply & Quality and Economic & Social Impact By Dr T.H. CHOWDARY Director: Center for Telecom.

Documents

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