Introduction to IT sector:

A simple question: "What is software?" A very simple answer is: Hardware

you can touch, software you can't. But that is too simple indeed.
But when talking about software you talk about programming and
programming languages. But about producing and selling the products made by
programming (languages) as well.
Then there was George Boole (1815-1864), a British mathematician, who
proved the relation between mathematics and logic with his algebra of logic (Boolean
algebra or binary logic) in 1847.
This meant a breakthrough for mathematics. Boole was the first to prove that
logic is part of mathematics and not of philosophy.
A big step in thinking too.
But it will take one hundred years before this algebra of logic is put to work
for computing. John Von Neumann working at the Institute for Advanced Study
developed in 1945 two important concepts that directly affected the path of computer
programming languages.
The first concept became known as "shared-program technique". This
technique states that the actual computer hardware should be simple and not need to
be hand-wired for each program. Instead, complex instructions should be used to
control the simple hardware, allowing it to be reprogrammed much faster. The second
concept was also extremely important to the development of programming languages.
Von Neumann called it "conditional control transfer". This idea gave rise to the notion
of subroutines, or small blocks of code that could be jumped to in any order, instead
of a single set of chronologically ordered steps for the computer to take. The second
part of the idea stated that computer code should be able to branch based on logical
statements such as IF (expression) THEN, and looped such as with a FOR statement.
"Conditional control transfer" gave rise to the idea of "libraries," which are blocks of
code that can be reused over and over.
In 1949, a few years after Von Neumann's work, the language Short Code
appeared. It was the first computer language for electronic devices and it required the
programmer to change its statements into 0's and 1's by hand. Still, it was the first step
towards the complex languages of today. In 1951, Grace Hopper wrote the first
compiler, A-0. A compiler is a program that turns the language's statements into 0's
and 1's for the computer to understand. This lead to faster programming, as the
programmer no longer had to do the work by hand.
In 1957, the first of the major languages appeared in the form of FORTRAN.
Its name stands for Formula Translating system. The language was designed at IBM
for scientific computing. The components were very simple, and provided the
programmer with low-level access to the computers innards. Today, this language
would be considered restrictive as it only included IF, DO, and GOTO statements, but
at the time, these commands were a big step forward. The basic types of data in use
today got their start in FORTRAN, these included logical variables (TRUE or
FALSE), and integer, real, and double-precision numbers. His part will be different
from the History of the computer, no chronological travel trough software-land, but a
collection of articles and assays on software.
GROWTH:
THE GROWTH OF SOFTWARE INDUSTRY IN THE WORLD 133
countries. Software produced by certain company can be used not only at local but
also at global level. On this basis, the company opens the doors to a large market and
thus gains big profits. This leads to greater needs for further development and
improvement of the software so that it must be always a step or two ahead of the
competition. To achieve this, people need to engage a larger number of experts of
different profiles. Positive effects on the economy of certain country are more than
obvious, hence the need to stimulate the firms involved in software engineering. The
importance of this can be illustrated by numerous examples and one of them is the
Oracle company, established in 1977 in the United States. It now employs 104,569
workers. By comparison, in October 2011 Bosnia and Herzegovina (B&H) has
registered 693,964 employees (Indikator,2011).Oracle is present in over 145 countries
worldwide; its net earnings in 2007 was 4.2 billion dollars, while in 2011 reached a
figure of 8.5 billion dollars (DailyFinance,2012). By contrast, the House of Peoples of
the Federation of B&H (FB&H) has adopted a budget for 2011 in the amount of 1,699
billion dollars.

The software industry is a branch of computer industry. In the U.S., it occupies

the third place, immediately after the automobile and electronic industries (Wilson,
2001). Otherwise, the U.S. leads this industry in relation to other countries. In 2008,
the U.S. took a significant share of the packaged software market. The share was
136.6 billion dollars, or 46% of the world market (Business Software Alliance [BSA],
2010) (see Figure 1). Therefore the U.S. is the largest single market of packaged
software in the world. Nevertheless more than half the world market packaged
software is located outside the U.S. In 2008, the PC software market has taken 30%
market share, or about 88 billion dollars of the total packaged software market worth
more than 297 billion dollars
Contribution for the economy:
Over the last 20 years, software has become an essential input for the
operations of virtually all businesses, across all industries and sectors. As a result, the
software industry has had disproportionate, positive effects on American output,
productivity, exports and jobs.

From 1997 to 2012, software industry production grew from $149 billion to $425
billion; and since this growth outpaced the rest of the economy, the software
industrys direct share of U.S. GDP increased from 1.7 percent to 2.6 percent, or more
than 50 percent.
The use of software also has increased the productivity of other industries, thereby
contributing to the growth of their production. Analysis shows that software
accounted for 12.1 percent of all U.S. labor productivity gains from 1995 to 2004 and
15.4 percent of those gains from 2004 to 2012.
On this basis, we calculate that software accounted for 9.5 percent of all gains in
U.S. output from 1995 to 2004, and 15.0 percent of those gains from 2004 to 2012. In
2012, therefore, software and the productivity gains it provides accounted for $101
billion in production by other industries.
All told, the software industry in 2012 contributed $526 billion to GDP -- $425
billion + $101 billion or 3.2 percent of GDP.
About 12 percent of U.S. software production is exported, totaling some $50 billion
to $57 billion in 2012. Moreover, exports of software and related services have grown
by 9 percent to 10 percent per-year since 2006, nearly 50 percent faster than all U.S.
exports.
From 1990 to 2012, business investments in software grew at more than twice the
rate of all fixed business investments; and from 2010 to 2012, software accounted for
12.2 percent of all fixed investment, compared to 3.5 percent for computers and
peripherals.
Direct employment in the software industry increased from 778,000 jobs in 1990
and 1,083,000 jobs in 1995, to 2,095,000 in 2010 and 2,501,000 in 2014. Since
software industry jobs grew faster than other jobs, the industrys share of all
employment rose from 0.9% in 1990 and 1.1 % in 1995, to 1.9 % in 2010 and 2.2 %
in 2014
INDIA:-
History:
Information technology is playing an important role in India today and has
transformed India's image from a slow moving bureaucratic economy to a land of
innovative entrepreneurs.
The IT sector in India is generating 2.5 million direct employments. India is
now one of the biggest IT capitals of the modern world and all the major players in
the world IT sector are present in the country.
Bangalore is considered to be the Silicon Valley of India because it is the
leading IT exporter. Exports dominate the industry and constitute about 77% of the
total industry revenue. However, the domestic market is also significant with a robust
revenue growth.[1] The industrys share of total Indian exports (merchandise plus
services) increased from less than 4% in FY1998 to about 25% in FY2012. According
to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy
Services, Infosys, Cognizant, Wipro, and HCL Technologies.
Regulated VSAT links became visible in 1994. Desai (2006) describes the steps taken
to relax regulations on linking in 1991.
In 1991 the Department of Electronics broke this impasse, creating a
corporation called Software Technology Parks of India (STPI) that, being owned by
the government, could provide VSAT communications without breaching its
monopoly. STPI set up software technology parks in different cities, each of which
provided satellite links to be used by firms; the local link was a wireless radio link. In
1993 the government began to allow individual companies their own dedicated links,
which allowed work done in India to be transmitted abroad directly. Indian firms soon
convinced their American customers that a satellite link was as reliable as a team of
programmers working in the clients office.
Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail
Service in 1991, the 64 Kbits leased line service in 1992, and commercial Internet
access on a visible scale in 1992. Election results were displayed via National
Informatics Centre's NICNET.
"The New Telecommunications Policy, 1999" (NTP 1999) helped further
liberalize India's telecommunications sector. The Information Technology Act 2000
created legal procedures for electronic transactions and e-commerce.

Growth:
The growth of technology as a field of education started with the
establishment of the first Indian Institute of Technology (IIT) in Kharagpur in 1951,
by the then education minister Maulana Abdul Kalam Azad. The IgrITs remain, till
date, one of the best among the premier technological institutes in the world,
providing high quality training in both the theoretical and practical aspects of
engineering. The concept of IT as an industry began to take root in India in the late
1960s. Until then, India used to import the EVS EM computers from the Soviet
Union. But in 1968, Tata Corporation formed the Tata Consultancy Services, which
soon became the largest software providers of the 60s. The National Informatics
Centre was established in 1975 and was followed by a boom of indigenous IT
companies such as Tata InfoTech, Patna Computers and Wipro. Although the growth
of industries as such was slow in the pre-liberalization days, both Indira Gandhi and
Rajeev Gandhi were convinced that electronics and telecommunication industry were
the future of India. The Indian government created three wide-area computer
networking schemes: INDONET which was intended to serve IBM networks across
the country, NICNET- the network created for the NIC, and Education and Research
Network (ERNET) which was oriented towards educational research; in the years
1986-1987. With the birth of the 90s, India saw massive changes in the IT industry.
The Department of Electronics created Software Technology Parks of India (STPI) in
1991, which is basically an export oriented scheme for the development and export of
computer software, including export of professional services. The decade saw a
massive stride in Indias economic growth, partly due to the extensive internet
connectivity provided all over the country at that time. In the 21st century, India has
risen to the position of one of the largest IT capitals of the world. As of 2006,
technologically inclined services sector in India accounted for 40% of the countrys
GDP and 30% of export earnings.
Perhaps no other industrial sector has affected the middle and upper middle
class population of India as much as the IT sector. Since the establishment of the IIT,
technical education has grown like an ever expanding tree with new engineering
colleges opening every day. It is of course the fondest wish of all Indian parents that
their child becomes either an engineer or a doctor. Since the early 1950s technical
education has been the ticket out of poverty and to a comfortable life for the people of
India. The first great wave of Indians migrating to the US in search of high skilled
jobs was during the 1950s and the 60s. An estimated 10,000 Indians were settled in
the US by the year 1960. This phenomenon, known as brain drain triggered off the
mass emigration of a large number of Indians to various countries around the world in
search of jobs with better pay and comforts. This probably impacted India in a
negative way, because even though the population steadily increased, the number of
skilled workers in India went on reducing. The second wave of Indian migration to
the US occurred in the 90s. The number of Indian Americans reached 1.7 million in
the year 2000. The growth of the IT industry has also helped to forge positive political
ties with nations round the global for the mutual exchange of intellectual resources. A
joint EU-India group of scholars was formed on 23 November 2001 to further
promote joint research and development. On 25 June 2002 India and the European
Union agreed to bilateral cooperation in the field of science and technology.
The IT industry has helped the growth of modern India in many ways. Indian
engineers and technicians are sought world over for their competency and diligence
and strong fundamentals in their field of work and study. Indias technology boom has
also helped her shed her Hollywood image of being the land of mystics, snake
charmers and beggars and has put her on the world map for being a global
information hub. The IT industry refers to a broad, umbrella term encompassing
various other industries like software industries, hardware industry, computer
companies and outsourcing companies. Each of the above mentioned industries have
grown at massive rates, providing jobs and products to Indians. For example HCL
Enterprise is electronics, computing an IT company based in India, has become a
leading provider of IT service and technological solutions worldwide. In fact, the IT
boom of the 90s and the 2000s in India was also accompanied with the growth of
BPOs in the nation. India has come under fire from certain groups of people
worldwide for stealing their jobs, but the fact stands that foreign corporations love
India for its abundant availability of skilled labor that can master foreign languages
and are satisfied at comparatively low salaries. But with most recent graduates these
days being absorbed into IT companies and BPOs and then getting their ticket to
America and Europe, India is losing a large chunk of its brains which will perhaps be
detrimental to the growth of innovative, indigenous technology and inventions in
India.
The IT industry in India has seen massive change, growth and development
over the years. The future of this industry seems bright with more growth being
predicted. Financial analysts are optimistically predicting strides in software
technology development in India. Additionally, the growth of the IT sector is expected
to bring about a corresponding growth in other sectors like employment, exports and
Foreign Direct Investments. IT sector is also intimately linked to other relevant
sectors like biomedical technology, defense and infrastructure. Thus the future of the
IT sector will directly impact the growth of the nation.

Key Industry Players & market share:

MicrosoftCorporation:
Microsoft Corporation is engaged in developing, licensing and supporting a
range of software products and services. It also designs and sells hardware, and
delivers online advertising to the customers. It has five segments: Windows &
Windows Live Division (Windows Division), Server and Tools, Online Services
Division (OSD), Microsoft Business Division (MBD), and Entertainment and Devices
Division (EDD).

IBM:
International Business Machines Corporation (IBM) is an information
technology (IT) company. The Company operates under five segments: Global
Technology Services (GTS), Global Business Services (GBS), Software, Systems and
Technology, and Global Financing. GTS primarily provides IT infrastructure services
and business process services.

AppleInc.:
Apple Inc. along with its subsidiaries is engaged in designs, manufactures and
markets mobile communication and media devices, personal computers, and portable
digital music players, and sells a range of related software, services, peripherals,
networking solutions, and third-party digital content and applications. The Company's
products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of
consumer and professional software applications, the iOS and Mac OS X operating
systems, iCloud, and a range of accessory, service and support offerings.

Dell:
Dell Incis a technology company that offers a range of technology product
categories, including mobility products, desktop personal computers (PCs), software
and peripherals, servers and networking products, storage and services. Its services
include a range of configurable information technology and business services,
including infrastructure technology, consulting and applications, and product-related
support services.
 The Indian software sectors value proposition remains unmatched in the
world. Entry level wages remain 8x-10x lower than in developed nations. The number
of global delivery centers (GDC) have increased to about 640 in FY15 in about 78
countries. About 27% of incremental GDCs were set up in India. Indias global
market share grew to 55% by the end of FY15.
The global IT sourcing grew by 9%-10% in FY15. This was 2 xs faster than
the growth in total IT spends. Indian IT-BPM industry grew by 13% in FY15 as per
NASSCOM. The growth projection for FY16 is 12%-14%. The growth will be driven
by new digital technologies. The adoption of these technologies will bring disruption
to the industrys traditional business model.

SWOT ANALYSIS:
Strengths:
Highly skilled, English speaking manpower
Cheap workforce than their Western counterparts. According to NASSCOM,
the wages difference is as high as 70-80 percent when compared to other
Western counterparts.
Lower attrition rates than on the West
Dedicated workforce aiming at making a long term career in the area
 Round-the clock benefit for Western companies due to the huge time
difference
Lower response time with efficient and effective service.

Weaknesses:
Recent months have seen a rise in the level of attrition rates among IT workers
who are quitting their jobs to pursue higher studies. Of late workers have
shown a tendency not to pursue IT as a full-time career.
The cost of telecom and network infrastructure is much higher in India than in
the US.

Opportunities:
To capitalize and encash on the already established image of India being
portrayed as the most favored IT destination in the world.
Opportunities for Indian companies to work closely with western
Governments and assure their concerns and issues.
India can be branded as a quality IT destination rather than a low-cost
destination

Threats:
The anti-outsourcing legislation in the US state of New Jersey. Three more
states in the US are planning legislation against outsourcing.
Workers in British Telecom have protested against outsourcing of work to
Indian BPO companies.
Other IT destinations such as China, Philippines and South Africa could have
an edge on the cost factor.

FUTURE TRENDS OF IT INDUSTRY:

Platform Architecture:
One of the most significant trends identified in the report finds that the age of
viewing everything through an application lens is coming to an end. Instead,
platform architectures will be selected primarily to cope with soaring volumes of data
and the complexity of data management, not for their ability to support applications.
Platform Architecture
One of the most significant trends identified in the report finds that the age of
viewing everything through an application lens is coming to an end. Instead,
platform architectures will be selected primarily to cope with soaring volumes of data
and the complexity of data management, not for their ability to support applications.
The tried and true relational database will not go away, but it will soon start to make
way for other types of databases streaming databases, for instance that mark a
significant departure from what IT departments and business users have relied on for
decades

Data Security:
 The fortress mentality, in which all IT has to be architected to be foolproof, is
giving way to a security architecture that responds proportionately to threats when and
where they happen. As a result, the role of people in data security will decline,
replaced by automated capabilities that detect, assess, and respond immediately.

Data Privacy:
Individual privacy will take center stage as a result of increased government
regulation and policy enforcement. The report concludes: We expect that leading
players will develop superior levels of understanding, enterprise-wide, about the
distinctions between being a data processor broadly handling the personal data of
others versus being a data controller, thus lowering the risks of unwitting breaches
or privacy regulations and perceptions of privacy breakdowns.

Architecture:
Information technology is evolving from a world that is server-centric to one
that is service-centric. Companies are quickly moving away from monolithic systems
that were wedded to one or more servers toward finer-grained, reusable services
distributed inside and outside the enterprise. The goal: to decouple infrastructure,
systems, applications, and business processes from one another.

User Experience:
Today, business process design is driven by the need for optimization and cost
reduction. Tomorrow it will be driven by the need to create superior user experiences
that help to boost customer satisfaction. Great user experiences will require more
layered approaches than what is typical today. As such, application design will be a
multidisciplinary exercise: Typically handled today by IT architects and business
owners, tomorrow it will involve optimization from the perspective of the process
actor, with the emphasis on simplicity and on removing inefficiencies.