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Indian IT industry overview Information Technology is one of the most important industries in the Indian economy.

The IT industry of India has registered huge growth in recent years. India's IT industry grew from 150 million US Dollars in 19901991 to a whopping 50 billion UD Dollars in 2006-2007. In the last ten years the Information Technology industry in India has grown at an average annual rate of 30%.
The liberalization of the Indian economy in the early nineties has played a major role in the growth of the IT industry of India. Deregulation policies adopted by the Government of India have led to substantial domestic investment and inflow of foreign capital to this industry. In 1970, high import duties had forced IBM to leave India. However, after the early nineties, many multi national IT companies, including IBM, have set up their operations in India. During the ten year period 19922002, the Indian software industry grew at double the rate as the US software industry. Some of the major reasons for the significant growth of the IT industry of India are -

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Abundant availability of skilled manpower Reduced telecommunication and internet costs Reduced import duties on software and hardware products Cost advantages Encouraging government policies Some of the major companies in the IT industry of India are -

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Tata Consultancy Services (TCS) Infosys Wipro IBM HP HCL Cognizant Technology Solutions (CTS) Patni Satyam NIIT India's IT industry caters to both domestic and export markets. Exports contribute around 75% of the total revenue of the IT industry in India. The IT industry can be broadly divided into four segments -

The growth of India's IT sector has brought about many other positive changes in the Indian economy. This has resulted in an increase in the average standard of living of the majority of population of the country. while the corresponding figure in 1998 was as small as 1. the software industry in India accounted for $8.    IT services Softwares (includes both engineering and Research and Development) ITES-BPO Hardware HR Software Cost effective payroll and HR software solutions from KCS. Another favorable effect of India's IT boom is the expansion of opportunities of employment. The share of technology industry in India's GDP is expected to reach 5. Export of software and services from India is expected to add almost 41 billion US dollars to the annual revenue of the Indian government in the current year. the compounded annual growth rate of the Indian IT services industry has been over 50%.The study of NASSCOM has revealed that the growth of India's IT industry has prompted the growth of Indian exports by almost 36%. During the financial year 20002001. This growth rate of the software sector for the year 2008 has been projected on the basis of the 35% per year growth rate achieved in the last couple of years. The software sector in India has grown at almost double the rate of the US software sector. There has been considerable increase in the amount of fund available for . By the end of fiscal year 2008. the IT sector of India is expected to employ around 2 million skilled Indian youths. During the period from 1992-2001. The statistics of the India's IT industry substantiates the huge momentum acquired by the IT sector in the recent past. Growth of India's IT Industry India's IT industry has recorded phenomenal growth over the last decade.5% in 2008.2%. The purchasing power of a large section of Indian population has increased dramatically.26 billion. As per the report of a study undertaken by NASSCOM-McKinsey. The increase in purchasing power of the common people has propelled the growth rate of the other sectors of the economy as well. The corresponding figure was $100 million 10 years back. the software export from Indian IT industry is likely to reach 50 billion US dollars in the year 2008.

The operations of IT firms like Wipro.1995-2000 1995-1996 .McKinsey report on the IT industry of India. The projected exports or the year 2008.2000 . The size of the Information Technology industry of India was 5.2670 million US Dollars 1998-1999 .3900 million US Dollars 1999. is 50 billion US Dollars.5%.7 billion US Dollars in 1999-2000. Tata Consultancy Services and many more in different locations of India have changed the entire scenario of the Indian job market.1224 million US Dollars 1996-1997 . The ITES sector has also come up to complement the growth of Indian IT sector. accord to this report. Size of India’s IT Industry The size of India's IT industry has grown significantly over the years.2 million people being employed in the IT industry of India by the end of 2008. The size of the IT industry grew consistently during the period .5700 million US Dollars 2000-2001 . the projected revenue of the IT industry of India for the year 2008 is 87 billion US Dollars. India is now home to a number of IT giants. Infosys.8750 million US Dollars According to the NASSCOM. Contribution of software and services to the total GDP of India will be more than 7. The growth of the IT industry has been very high in the last few years.venture capitalism and equity financing. . Capgemini. The size of this sunshine industry of India grew from 150 million US Dollars to 50 billion US Dollars between 1990-1991 and 2006-2007. Accenture. After the turn of the century the industry experienced exponential growth to reach the 50 billion mark by 2006-2007. Some of the important aspects of the NASSCOM.1755 million US Dollars 1997-1998 .McKinsey report related to the size of India's IT industry are -   There is potential of 2.

The flourishing Indian economy has helped the IT sector to maintain its competitiveness in the global market.4% in the last fiscal year.5 billion US Dollars expected in the IT industry by the end of 2008. The growth and prosperity of India's IT industry depends on some crucial factors. These factors are as follows:  India is home to a large number of IT professionals. So. One of the major areas of growth for the IT industry of India is by tapping the potential in the domestic market. who have the necessary skill and expertise to meet the demands and expectations of the global IT industry. Contribution of India's IT Industry to Economic Progress The contribution of India's IT industry to economic progress has been quite significant. the domestic IT market in India accounted for 900 billion rupees. This makes the Indian IT services highly cost efficient and this is also the reason as to why .46 trillion Indian rupees in the fiscal year 2007. India's IT industry is expected to grow at an annual average rate of 18% in the next five years. The industry is expected to grow to double its current size by the year 2012. Out of this figure. the IT sector in India has played a major role in drawing foreign funds into the domestic market. The rapidly expanding socio-economic infrastructure has proved to be of great use in supporting the growth of Indian information technology industry. 225 billion US Dollars worth of market capitalization from IT shares. The IT industry of India is largely dependant on the export market.   FDI (Foreign Direct Investment) of 4. The total revenue from this sector was valued at 2. The projections about the size of India's IT industry present a very optimistic picture. Softwares and services are exported to bout 95 companies from India. Penetrating more into the domestic market would create further opportunities of growth for the IT industry. The industry is also expected to cross the 100 billion US Dollar mark by 2011. The IT and IT enabled services industry in India has recorded a growth rate of 22. 35% of total exports from India will be from IT exports.  The cost of skilled Indian workforce is reasonably low compared to the developed nations. North America accounts for 61% of the software exports from India.

The IT sector of India offers a host of opportunities of employment. This is expected to grow further in coming years. The inflow of huge volumes of FDI in the IT industry of India has not only boosted the industry but the entire Indian economy in recent years.  India has a huge pool of English-speaking IT professionals.  Employment . the high rate of employment in the IT sector is a big advantage. there is no dearth of job opportunities for the Indian software professionals. All these have solved the unemployment problem of India to a great extent.2 million by the end of 2008 which is expected to increase significantly in coming years. Future prospects of IT industry The current scenario in the IT industry of India and the tremendous growth registered in recent years has generated much optimism about the future of the Indian Information technology industry. The average purchasing power of the common people of India has improved substantially.the IT enabled services like business process outsourcing and knowledge process outsourcing have expanded significantly in the Indian job market. The Nasscom. With IT biggies like Infosys. with a huge population. The aggregate demand has increased as a result.The biggest benefit of the IT industry is the huge employment it generates. For a developing country like India. The IT enabled sector of India absorbs a large number of graduates from general stream in the BPO and KPO firms. Accenture and several other IT firms operating in some of the major Indian cities. The consumption spending has recorded an all-time high. Cognizant. This is why the Englishspeaking countries like the US and the UK depend on the Indian IT industry for outsourcing their business processes. All these have improved the gross production of goods and services in the Indian economy. The IT industry is expected to generate employment of 2. The emergence of Indian information technology sector has brought about sea changes in the Indian job market. Tata Consultancy Services. Wipro.McKinsey report on the IT industry of India projects that the Indian IT .High inflow of FDI in the IT sector is expected to continue in coming years.  FDI (Foreign Direct Investment) .The IT industry accounts for a major share in the exports from India. The information technology industry is one of the major sources of foreign currency or India. So in conclusion it can be said that the growth of India's IT industry has been instrumental in facilitating the economic progress of India. Analysts are upbeat about the huge potential of growth in the Information Technology industry in India. The major areas of benefit that the future growth in the IT industry can generate for the Indian economy are -  Exports .

and their needs play a central and continuous role in the system development life cycle (SDLC) .industry will reach 87 billion US Dollars by the end of 2008. The reputation that India has earned as a major destination for IT outsourcing has opened further possibilities. Gap Analysis For software development in IT industry In a Successful Software System Development there are two important constituencies.2 million Employment is expected to be created in the IT industry according to this report. the industry has faced the challenges posed by the global market and is sustaining its rate of growth. The User/ Customer-centric Model is developed to deploy the system solutions that meet the business requirements of the customer and it work as per the user requirements and this basically keeps the user and customer focus on all phases of SDLC . Another important area of future growth for the IT industry of India is the domestic market. Use of the gap model yields some interesting insights regarding the management of system development. However.The User / Customer Needs the Gap model was developed in a commercial setting to complement a traditional SDLC and address these issues. South and Southeast Asia. companies overinvest in managing certain gaps and under-invest in others. This is driven by the presence of features that fulfill customer needs and the absence of defects that interfere with the fulfillment of needs. Many developing countries are now using the Indian model for growth in the IT sector. Software exports from India are expected to grow in coming years. in many cases. there is huge scope of growth in the domestic market which can be tapped in the future. users and customers. While exports dominate the IT industry at present. The focus for the future is to ensure that the benefits of the IT industry percolate to the grassroot levels.The SDLC model basically starts and ends with the user/customer needs and it helps in understanding the frequent verification needs particularly during the long life cycle and in this model(or Software solution) the Customer has the opportunity to reflect the problem directly to the management or the executives who are in direct operational role and the business results that are delivered by the deployed solution and most critical for the customer satisfaction. 2. The report also projects 50 billion US Dollars of IT exports from India by the end of 2008. USER/CUSTOMER-CENTRIC MODEL FOR SOFTWARE QUALITY:It is generally accepted that quality is experienced by the customer as a high level of satisfaction with the product. New markets for software exports from India have opened up in the Middle East. The US recession has had its share of negative impacts on the Indian IT industry. and Eastern Europe. . Africa.

This gap is determined by assessments gap. there is an assessment gap between the real needs of the users and the assessed needs and these are two different points in the user/customer needs space i. and once the gap is analyzed the game plan is to focus on the reduce the gap and move towards the expected result.GAP ANALYSIS IN THE USER/CUSTOMER NEEDS SPACE In the early phases of the SDLC or in the developing the business case and performing the systems analysis. weather the solution is as per the real needs i. implementation gap and Time gap. the User/ Customer acceptance region.Assessed needs The need that changes over the time and varies due to external and internal factors affecting the business this is figured out as time gap which is the gap between real need at the time of assessment and the real needs at the time of deployment. to capture these real needs completely and precise. It’s the space between where you are and what you want to be . budget.The Difference between the needs which are captured during the assessment and the needs which are deployed during the solution is called implementation gap. For Example: . But the impact also depends on the solution.Deployed needs The gap results between the deployed needs highlighted in the solution and the real needs at the time of deployment (which was previously mentioned during assessments). and also there are not perfect tools.In a Firm the Document is prepared between the customer Expectation and the Customer Experiences at the Time of Delivery. Deployment gap = Real needs at deployment .Gap analysis is also defined as the difference between what are the needs and what is available .e. The Difference between the Expectation and the Experience is known and Gap.e. . The assessment and the needs that are collect and which fails in not capturing the real needs of the users/customers as there is not enough time.Real needs at assessment And at the completion of development process and when the solution is deployed . Assessment gap = Real needs at assessment .Gap Analysis is the studying the difference between the standards and delivery standards .Deployed needs = Assessment gap + Implementation gap + Time gap Overview The difference between the study of two distinct information system or applications is called Gap Analysis. attempt to uncover few sets of user needs. Implementation gap = Assessed needs . Time gap = Real needs at deployment .

Benefits of planning by gap analysis .

Steps involved in the implementation of gap analysis are: Identification of customer expectations Identification of customer experiences Identification of management perceptions Evaluation of service standards Evaluation of customer communications Customer expectations and experience is identified by Focus-Group Interviews. the life cycle for project management in the specific company. a very common measure for projects is the number of defects found per thousand lines of code. BALANCED GAP MANAGEMENT The key to delivering a solution that is within the user/customer acceptance region are:To ensure that all gaps are small and. Typically a group of customers(Maximum Ten) Where interviewed on their satisfaction with service or products . It ensures that current problems or issues are defined and resolved.This process helps in measuring experience and expectation and this process usually helps in successfully identification of those   1.The requirement which mainly focus on the User's needs was also enhanced with the user-oriented scenarios of user and for this user should be more directly engaged in the assessment process. if defects are defined as deviations from requirements (assessed needs).     Planning by gap analysis allows the development to adapt a general life cycle. It ensures that the benefits desired by executives and managers are the goals of the PMO. It ensures that the PMO’s goals and plans are feasible.For example Big Commercial business . Previously the average length of the project was nine to twelve month but the changes in the assessment and the time gap produced and a more balanced gap management helps in reducing the development cycle to six month or to less duration. It improves the effectiveness and efficiency of the project management throughout the organization. The Formal SDLC and Project Management Methodology that includes Level2 CMM Capability and Adherence to this methodology allows company to build a system that is closely matched to assessed requirements and thus helps in providing strong management to the Implementation gaps . the defect measure may keep improving but actual system acceptance may remain low due to the size of the other gaps.. . Although these organizations have sound methodology and software development activities and this results in the realization of better management of the assessments gap that was needed . If a development team (or software services company) focuses solely on improvements in this measure and doesn't measure and improve the other gaps. Government Agencies and the System Solution Provides etc. 5. This adaptation results in these benefits: It maximizes the benefits to the organization. This is essentially managing the implementation gap. to the extent possible To increase the acceptance area. 3. For example.This Organization is focused on time and resources on the assessment phases of the projects . 2. 4.

In CMM gap analysis the focus is to identify what stakeholders must do to comply with the CMM specification and what a developer must tweak in their day-to-day activities to improve the certain skill sets.The Gap analysis involves in collecting of performance data and with the use of advance statistical and mathematical computations the root cause of the Gaps can be determined. Application If the Company is performing at different level in the specified time and according to CMM Model then CMM Gap analysis helps to determine the Gap between the two levels and this helps company to close the gap . Identification The capability maturity model (CMM) is an improvement methodology that is used by software companies to analyze their process development and the CMM gap analysis is helps the system to meet CMM improvement standards. During Development the analysis of the gap between the current performance level and the desired performance level according to the capability maturity model. . The most cost-effective improvement plan could be developed. This maturity path is as follows:Increasingly maturing milestones or quality standards.The balanced Gap management in the User / customer needs space for the software development are not Explicit managed to manage the projects but the balanced gap management can be applied to SDLC methodologies because it was successfully used to improve customer satisfaction and the acceptance of the system delivery by a software company. An Example of CMM Gap Analysis CMM Gap analysis is a tool that is used to improve the processes in software development and engineering process companies’ . The measurement of an organization's (Level of Management) gaps in some standard way can be done as follows:To develop a practical set of tools to assess how well each gap is managed in practice by a particular organization.  service and product attributes that hold Importantance. CONCLUSION As we have seen the basic idea of two approaches i.Focus-Group Interviews and measure the expectations and Experience of the customer and they present on the scale of one to ten as one denotes " Not important " and ten denotes " Highly Important ".e. REFINEMENT OF THE MODEL Though we have seen that the balanced Gap management model has proven to be useful in many ways but still there is some addition in the development of this model. customer-centric software development and balanced gap management are not new .Gap can be identified with Customer Expectation and Experience and after identifying this gaps the management has to take some appropriate step to fill this gaps . perhaps using a standard set of measures used broadly across the industry To normalize the scores of management for each gap so that any imbalances are obvious. Function CMM establishes a maturity path of continuous process improvement for an organization.