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Home > 50 Years of IT > Perspective

IT's There, but We Don't See it
Shyam Malhotra, editor-in-chief of CyberMedia, the publisher of Dataquest
Saturday, December 30, 2006

IT has catapulted India into the global arena, but back home it should make much more impact

An industry that is worth Rs 165,000 crore. An industry that has made India synonymous with IT, software, outsourcing. We applaud India's fine IT performance in these 50 years.

But take a look around you. We see computers everywhere in corporate India, but step outside this world and how many of them do you see? Do you think most people in India-in cities or villages-would really miss a PC were it not around?

Shyam Malhotra

The author is editor-in-chief of CyberMedia, the publisher of Dataquest. He can be reached at shyamm@cybermedia.co.in 

India has a PC penetration of 18 per 1000 people. With a projected five million PCs plus to be sold this fiscal, that will go up also. And that is an impressive increase from 6 PCs for 1000 people in 2000-01. But still far below the 100 per 1000 people worldwide. And that is because of a combination of oft repeated factors. The sub-10K PC is still a dream. Software costs are lower but not low enough. Packages for local applications have been neglected for long. And the killer app that will make people take to computers in a far bigger way is still elusive.

Email is great, but it hasn't yet become the choice mode of communication for a large majority. The Internet is great for getting information -but there is little interest for too many people. Computerized banking is great for tracking transactions but banking itself is not something that everyone uses. Portals like Agmarknet, APREGS, e-Suvidha, etc, are great services. We talk of e-Governance projects all the time-but there are too many pilots and too little of mass application. And sadly, this situation has not changed dramatically for the last many years.

IT is being seen globally as a tool to raise productivity and the standard of living, deliver greater educational opportunity, improve healthcare, and increase global participation. In 2001-2005, ICT represented 6.8% of global GDP, says Digital Planet 2006. The world is expected to spend almost
$3 tn on ICT in 2006, which is set to go up to $3.9 tn by 2009. India by contrast will spend $65.5 bn on ICT in 2007. And that includes a huge spend which is essentially catering to the international markets.

The tools are there. The intent is good. Yet, there are a lot of missing links. For instance, is there an inexpensive small enterprise package that can take care of the accounts, admin, HR, purchases, and other requirements of a small entrepreneur? Beyond a couple of accounting packages, we can't think of any software that can come to the aid of a small business. The vast segment of SMB has watched from the sidelines-as statements of being an IT superpower are bandied around.

The tools are there. The intent is good. Yet, there are a lot of missing links

As an example, health is another area which can benefit tremendously from IT infrastructure, especially in a billion-people country like ours. Maybe a lot is happening but do the masses see it? We have heard of telemedicine projects by Apollo, Narayana Hrudayalaya, ISRO. But we need such initiatives to become mass movements.

India, having established itself in the global software arena, needs to follow an inward looking approach now. The work is cut out: Lower the cost of the PC and software, create relevant applications that will help the farmer, the housewife, the goldsmith, the weaver, the small business to better their productivity as well as lives. The challenge is to take on this work.

And the IT industry has the power and clout to make that happen. The point is to make the efforts happening in pockets to be scaled up and replicated across the country so that IT can touch and change the life of even the commonest man for the better.

Till then we maybe able to call ourselves IT super-suppliers to the world, but not an IT superpower.

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