1- Why has India been able to build a thriving software industry? What
are the country’s advantages in this market? What are the country’s
disadvantages?
India was able to build a thriving software industry because its government relaxed
its control over the economy by reducing trade barriers, opening the door to new
foreign direct investments and modernizing the country’s financial sector for
decades. India’s advantages in this market is having its universities annually
graduating tens of thousands of engineers in the software field.
The disadvantages were that India’s economic policies were all inward-looking.
2- What is the likely impact on the Indian economy if its software
industry continues to growth?
Since India’s population is about 1 billion today, the likely impact on its economy if
its software industry continues to grow would be overwhelming the country’s
infrastructure and causing a lot of problems like what happened in Bangalore such as
water shortages, disruptions in power supplies, and nightmarish commutes.
3- Given the predicted shortage of qualified workers, what can India do
to ensure that its software and BPO industry remains competitive?
India should shift its software development and BPOs activities to other countries
where programmers are cheaper such as China.
