“Weaknesses” of India Software Inc

Lack of Package Orientation: Although, a few companies have started making shrink-wrapped software packages, the industry as a whole is still not oriented towards development of world class ‘shrink-wrapped’ software packages. Thus, the industry is not able to take advantage of a multiplier effect for growth in revenues.

Lack of Domestic Computerization: Lack of adequate computerization has led to a relatively weak domestic software market. Even, the PC penetration rate is very low.

Lack of Internet Penetration: With low penetration of PC’s, it is obvious that Internet penetration is also poor. At the end of the year 1999, India could only boast of 6,10,000 Internet connections with about 2.1 million users. The recently announced Internet Service Provider policy is expected to improve the situation.

Original Technology: The Indian software industry possesses the expertise to absorb and use the latest technology. However, barring a few exceptions, it has still not produced enough original technology breakthroughs. Succinctly put, the industry has not created original operating systems or new computer languages and technologies, which could be used globally.

Mission Critical Real Time Operations: Some of the leading companies in India have handled software development for mission critical real time operations. However, the industry as a whole does not have much experience in this field.

Project Management Skills: As the Indian software industry has been growing at a fast rate, most of the project managers are becoming entrepreneurs, thus creating a gap in demand and supply of project management skills.

Venture Capital: In building a robust venture creation process, India still faces few constraints. To build a prolific venture community, India needs to focus on boosting all stages of venture creation process and have simplified procedures so that the domestic Venture Capital movement can flourish and overseas Venture Capital funds can be attracted.

Localisation: With the exception of isolated cases, not much exists in providing software applications in innumerable local languages. Thus, computer penetration in India is restricted to merely the English speaking population.