Problems And Prospect Of Information Technology

Problems And Prospect Of Information Technology Information is power. Without up to date and correct information men and organization cannot take appropriate decision in time. Information is a base for development. It is a grass root for the human life style. Information has changed the entire scenario of the society. Nobody can deny the importance of the information in the modern changing world. Economic development of the country depends on the information, coordination and transformation among the departments. Information Technology (IT) is a part of research and scientific knowledge. Information Technology played a tremendous role to channelize and control the social and human resources. After globalization liberalization and privatisation, information technology is the need of the hour in the country. In the global market IT sector has played a vital role to make the world as a global village. IT sector has given a platform for the scientist and educationist to create a new world, where there is no bifurcation on the basis of geographical region, ethnicity, caste, creed and religion. A day will come where the IT will create a world of civilization for the human being. The whole world now days is enjoying the benefit of IT achievements. The Jharkhand state was created on 15th November 2000.Now it is a separate state. There are other two state got separated, but in terms of development these two states has gone far ahead in comparison with Jharkhand. it is due to the absence backwardness of information Technology(IT) industries. If the Jharkhand government wants to make the Jharkhand development they must ensure the development of IT industries in Jharkhand in the interest of the people. The young generation of Jharkhand wants to increase their ability to compete with other states. So the government must give full support to the young generation to create a new era of development and growth of Jharkhand. Presently IT firms in Ranchi are unorganized. They are in the initial phase of its value chain. Most of them are only into trading, and providing services. There are very few firms who are into web designing and software development. Freelance IT consulting is also identified here because of the defragmented and unorganized IT industry. Unorganized sector is not able to provide satisfying salary and career development, because of low bargaining power of IT professionals. Most of the potential work forces are moving out from here for better job and career prospect because of these problems. The emergence of freelance consultancy is also one of its outcomes. The presence of IT firm is limited in terms of their operation. They are only into trading and providing IT solutions, there is no firm in manufacturing the IT related products. The list of important IT firm in Ranchi is given below:-[1] IT firms in Ranchi: Sl.No. Name Location Organization type 1 Chokhani Computers pvt. Ltd. Ranchi club complex, main road Ranchi Hardware supplier 2 Computer Network Near NIIT, Ranchi Hardware Suppliers 3 Computer India Near Roshapa tower,Main road Ranchi Hardware suppliers 4 Origin Infotech Commerce building, behind Mahaveer Tower,main road Ranchi Hardware suppliers 5 Computer Gallery Sainik Market, Main road Ranchi Hardware suppliers 6 Technocrat(Kolkatta based firm) Roshapa tower, main road Ranchi 7 SAISH ENTERPRISE Sen Villa, P.P. compound ,Ranchi IT Service provider 8 EXPRESS INFO SERVICES Ranchi Web designing 9 BSNL BSNL, Ranchi (Internet service provider)ISP 10 Reliance India ltd Ranchi ISP 11 SIFY Ranchi ISP 12 Zero Worries Ranchi ISP [1]. EXPRESS INFO BOOK (2006-2008). The information technology (IT) industry has become the most innovative and largest industries in the world. This sector has increased their productivity in developed and developing country. They are viewed as key driver of global economic growth. Economies of scale and increased demand from both consumers and enterprises are responsible for its rapid growth. The Information Technology Association of America (ITAA) explains the information technology as encompassing all possible aspects of information systems based on computers. It incorporates the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware. [2] Researchers in Information Technology (IT) have defined information as data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions(G. Devis, 1985). Technology has been defined as practical im ­plementations of intelligence. (F. Ferre, 1988).Tech ­nology is practical or useful, rather than being an end in itself. Information Technology (IT) is defined as technology used to acquire and process information in support of human purposes. It is typically instantiated as IT systems complex organizations of hardware, software, procedures, data, and people, devel ­oped to address tasks faced by individuals and groups, typically within some organizational set ­ting (March Smith, 1995). Information Technology industry: Information technology industry is defined as an industry where, there are number of firms producing, designing, selling and procuring IT products and services and competing with each other for profit, growth and economic development. [2]. www.wikipedia.com. Information technology deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information. 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. The demand for IT services has increased substantially over the years because of its easy accessibility and the wide range of IT products available. The IT sector has emerged as a major global source of both growth and employment. Nobody can forget the contribution extended by late Honourable Prime Minister Rajiv Gandhi in the field of Information Technology (IT). He was the pioneer of the IT industry in modern India He introduced and implemented the application and use of Information Technology (IT) in various field in his tenure of 1986-1990. It is still a promising sector in India. It has generated revenues for both the domestic as well as the global market. Indias IT potential has attracted even multinationals to grab a share of profit in the IT boom. A significant rate of returns compelled them to invest and open their new units in India. The different states of India has also developed their core competency in IT sector and emerged as a global player (eg. Infoysis,TCS,Satyam,HCL,Wipro,etc).The growth in IT sector is because of the availability of the competent workforce in all section of the society. The large number of trained workforce was made possible in every part of India is because of the favourable government policies, educational institutions and the society at large. The women workforces Interest and competency towards this sector is also responsible for its rapid development and growth. Importance of IT Park in Jharkhand: The concept of IT Park in Jharkhand has taken its shape recently for the betterment of the society. The main objective to have an IT park in Ranchi district is to make them aware about the knowledge and importance of Information technology for their productive use. The IT Park will provide an opportunity to understand the positive aspect of Information Technology in this state. It will also remove the fear among the people towards the use and importance of IT industries. Historical Background The Indian Information Technology industry was started in the year way back in 1980. INFOYSIS was the first IT Company established in the year 1992 by Narayan murthy. After that, the Indian software industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7 billion (including over $4 billion worth of software exports) in 1999-2000. No other Indian industry has performed so well against the global competition. The annual growth rate of Indias software exports has been consistently over 50 percent since 1991. As per the projections made by the National Association of Software and Services Companies (NASSCOM) for 2000-2001.Indias software exports would be around $ 6.3 billion, in addition to $ 2.5 billion in domestic sale. Indian Software Industry 1995-2000 (US $ million) 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01* Domestic software Market 490 670 920 1250 1700 2450 Software Exports 734 1085 1750 2650 4000 6300 Indian Software Industry 1224 1755 2670 3900 5700 8750 (* Source: NASSCOM Report, 2001- 2002) The Indian information technology sector has been instrumental in driving the nations economy onto the rapid growth curve. According to the NASSCOM-Deloitte study, the IT and Information Technology Enable services (ITES) industrys contribution to the countrys Gross Domestic product (GDP)has increased to a share of 5.2 per cent in 2007, as against 1.2 per cent in 1998. The IT and BPO industries revenues are worth US$ 64 billion by the end of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40 billion and the domestic market estimated to clock over US$ 23 billion, according to a study. Simultaneously, the Indian IT services market is estimated to remain the fastest growing in the Asia Pacific region with a Cumulative Aggregate (CAGR) of 18.6 per cent, as per a study by Springboard Research. Indias IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. A report by the Electronics and Software Export Promotion Council (ESC) estimates software exports to register a 33 per cent growth in the current financial year with export figures during FY 2008 expected to reach US$ 45 billion. The countrys IT exports have, in fact, come quite far, starting from a few million dollars in the early 1990s. The Government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum. [3] Significance of the Research project: The significance of this research project is manifold .Few important ones are stated below:- The Importance of Information Technology cannot be ignored by organizations and the society as well, because it has contributed significantly in the economic growth of India. Organizations and Society at all level has benefited out of this development prospects. At the same time development in this sector is supported by The Government. They are providing infrastructures to provide the basic awareness and education in the field of Information Technology (IT). First, this research study would bring the true scenario of IT sector in Jharkhand. [3]. NASSCOM REPORT (2000-2001) The development prospect is profitable in almost all possible sectors in Jharkhand, so, the emphasis on IT sector is a step towards understanding it in a more systematic way. 4) The possibility of future success in Jharkhand would be identified with the help of appropriate research methodology and tools. Domestic growths trends will be identified by the researchers in this sector. 5) The growth status in Jharkhand would provide important additional information about this industry for future development decision. The investigation of the problems and prospects in this sector would also bring more insight in the field of present research. The contribution of this research is towards the industrys benefit and also toward the benefit of the society in terms of employment generation opportunity. Objectives of the research project: To investigate the present status of IT industries in Jharkhand. To investigate the problems related to IT industries. To investigate the new prospect compare to other industries. To find out the contribution of IT industries in the employment generation. To find out the contribution of IT industries on working culture and employee health. Types of IT industries. There are different types of Software Company working in India. Their products and services are different from each other. Few of them are into software developing and some of them are more towards designing and producing hardware. Some of them are only into distributing the products and providing services to the customers and consumers. There are few which have only local and domestic influence but there are few which have domestic as well as global influence. Ultimately they all are contributing towards the economic development and employment generation in a best possible way. The categories of IT industries may be classified and identified on the basis of:- Geographical operation Investment Products Services Size Operation Target segment There are two major classifications in terms of geographical operation: 1. Multinationals IT firm 2. Domestic IT firm Indias domestic market has also become a force to reckon, with the existing IT infrastructure evolving both in terms of technology and depth of penetration. Global IT companies as well as domestic biggies like IBM, Accenture, HP, TCS, HCL and Wipro have witnessed a remarkable growth in their business. The domestic information technology business has become more attractive. India Incs demand for IT services and products has strengthened the growth in the domestic sector. The Role of Jharkhand government in promoting IT sectors/industries:- Rules and Regulations The Information Technology was introduced in India by the Honourable prime minister Late Rajiv Gandhi with an aim to make the India self reliant in every sector to equal the world. After Liberalization privatization and globalization the IT knowledge for industries and entrepreneurs of public and private sector and government offices was the need of the hour to dispose the work scientifically with zero percent faults. The government of India passed a regulation in the year 1998 to compete in the global market by promoting IT sector in a best possible way. The government of India extended liberal rules and regulation to establish the IT industries. The Jharkhand Government has also adopted the similar rules and regulations to promote the IT industry in a view to contribute to the states and countrys economic and societal development. The rules and regulations related to IT industries are given below:- 1. Info-Infrastructure Drive: Accelerate the drive for setting up a world class Info-Infrastructure with an extensive spread of Fibre Optic Network, Satcom networks and Wireless networks for seamlessly interconnecting the Local Informatics Infrastructure (LII), National Informatics Infrastructure (NII) and the Global Informatics Infrastructure (GII) to ensure a fast nation-wide onset of the INTERNET, EXTRANETs and INTRANETs. Coordinate with all Central Government and private agencies involved in putting together the Info-Infrastructure in Jharkhand and actively put supplementary connectivity to the last mile. Requests made by STPs would be acted on within two weeks of receipt. In this regard, any renovation or construction of State Highways, new power transmission lines and new township development projects would look into the possibility of adding Optical Fibre network in these projects. 2 With Indias potential to achieve $50 billion dollar of IT exports by 2008, policy ambiance will be created for Jharkhand IT industry to target for a $ 5 billion annual export by the year 2010. 3 IT for all by 2010: Accelerate the rate of computer penetration in the state so that it reaches a penetration of one per 50 people by the year 2010. Towards the goal of IT for all by 2010, policies are provided for setting the base for a rapid spread of IT awareness among the citizens, propagation of IT literacy, networked Government, IT-led economic development, rural penetration of IT applications, training citizens in the use of day-to-day IT services like tele-banking, tele-medicine, tele-education, tele-documents transfer, tele-library, tele-info-centres, electronic commerce, public call centres, among others; and training, qualitatively and quantitatively, world class IT professionals. 4 Coordinate with all Central Government and private agencies involved in putting together the Info-Infrastructure in Jharkhand and actively put supplementary connectivity to the last mile. Requests made by STPs would be acted on within two weeks of receipt. In this regard, any renovation or construction of State Highways, new power transmission lines and new township development projects would look into the possibility of adding Optical Fibre network in these projects. 5 To provide Info Infrastructure to all areas with access to power within a period of 2 years. 6 To deliver e-governance, computerise the secretariat functioning within 2 years and allocate at least 2% of the departmental budget for IT related development. 7 To create a network right down to the block level administration within 2 years and bring the village level e-governance by 2005. 8. Promote IT Habitats in the rural hinterland adjacent to cities with modern telecom and communications infrastructure along with top class educational/research institutions. 9 Create a Centre of excellence like IIIT in and around Ranchi and Regional Engineering Colleges through private participation. 10 Government to support all development of IT support services in regional language. 12 State Institutes of Public administration would be re-engineered to help bring about IT responsive State administration. 14 Suitable floor space in Government buildings, which are not utilised during non-office hours, would be considered to be given to private educational institutions for IT training purposes in return for a proportionate number of free nominations of Government employees for IT training. 15 Feasibility of introducing a Citizen ID Number for creation of state wide database will be explored. 16 SPECIAL INCENTIVES FOR THE IT INDUSTRY Exemption from environmental clearance Exemption from zoning regulations for purposes of location Self-certification for purposes of compliance of the following Acts: Water and Air Pollution Act , Factories Act , Employment Exchange (Notification of vacancies) Act , · Payment of Wages Act, Minimum Wages Act , Contract Labour (Regulation and Abolition) Act , Workmen Compensation Act , Shops and Establishments Act ; etc. d. General permission to run a three-shift operation e. The Government would provide rebate in the cost of land allotted to an IT Industry @ 0.25% of the cost of land per job created subject to the following conditions: f. For establishing IT industries in the existing structures located in the industrial areas under IADA. Concessions will be in the form of rebate on registration charges and stamp duty for sale / lease of such built-up space to the IT industry in the following manner: Sl.No. Duration during which facilities established and sold/leased Rebate Admissible 1. 1-8-2001 to 31-3-2003 90% 2 1-4-2003 to 31-3-2004 70% 3 1-4-2004 to 31-3-2005 50% (g) Similar concessions would also be admissible for establishing IT infrastructure facilities on private/Government land. This concession would be available only for such localities which are notified by the Industries Department and which provide certain minimum facilities like uninterrupted/backup power, reliable telecom links etc. (h) This concession would be available only for the first transaction when the first sale by IADA / Other concern is made to an IT industry. The above concession would also be available on the purchase of land by an IT Industry establishing an IT park for its own use provided it does not avail the concessions in para 16.e. [4] Present scenario of IT industry in Jharkhand: The Government of Jharkhand, recognising the impressive growth of the IT sector in the country, has resolved to make Jharkhand an IT powerhouse and a front runner in the Information revolution. The government considers IT as an agent of transformation of every facet of human life which will bring about knowledge based society. 8. Hypotheses of the research project: Growth of Information Technology is positively related to the availability of the competent work force. Development of IT industries is positively associated with Socio-economic growth of the state. Development and growth of IT Industries in Jharkhand is dependent on the government policy. [4]. http://ranchiexpress.com/jipolicy/informationtechnology.htm 9. Research design and Methodology: The structure and strategy of overall procedure by which we intend to gain more knowledge of a specific research problem or a specific aspect of the society is termed as Research Design. F.N. Kerlinger stated that Research design is a plan structure and strategy of investigation conceived to obtain an answer to research question and to control variance. The descriptive research design will be administered for this research project. In descriptive research design both quantitative and qualitative techniques are involved. The quantitative description and qualitative methods is used through the use of questionnaire and Interview method. Survey research method will be administered Quantitative and qualitative Methods: Questionnaires on problems and prospect of IT industries Questionnaire on IT industries performance. Sample design and their Characteristics Data collection and interpretation. 10. Tentative Chapterization of Research work: Introduction(Meaning, objective, conceptual definition ,significance, importance, Hypotheses) Historical Background of IT industries in Jharkhand. Impact of IT industries in Jharkhand (Ranchi) on employment, income generation and work culture. Important IT industries in Ranchi District. Role of government in the development of IT sector in Jharkhand(rules and regulations) Problems of IT industries. Prospect of IT industries in Jharkhand Finding and suggestions