Tuesday, 5 April 2016

Origin & Growth of Software Development Industry

custom application development company India

1. Introduction

The custom application development company India industry was started by Mumbai-based conglomerates which entered the business by supplying global IT companies located overseas with programmers. Their success owed to the innovative exploitation of a new global market opportunity and protection from transnational corporations (TNCs) and startups by policy. In India, government policy disfavoured all types but was not at all hostile to domestic and large firms. The environment was protected and it restricted the growth of project management and domain skills so that, despite access to a large pool of programmers, the industry was not able to grow in value-addition. A decade later, mainframe-based programming and manufacturer-specific operating systems and languages gave way to workstation-based programming and standard operating systems and high-level languages. These changes modularized the programming function, now programming could be done independently of the hardware platform and from the other functions of software creation, such as system design. This, along with policy reforms that reduced costs of imported hardware and software, caused the Indian industry to shift from supplying programmers to supplying software programs.

2. Origins of the IT industry

IBM created the independent software vendor (ISV) industry in 1969 to unbundle its mainframe operating system, hardware and applications software by creating open standards.
Software is usually classified by customization and by type of use.
Types of software by usage:
1. System-level software: programs that manage the internal operations of the computer, such as driver software, operating system software and virus scan software and utilities.
2. Tools software: Programs that help applications to work better, for example database management software.

3. Applications: Programs that deliver solutions to the end-user, such as financial accounting software and word processing software.
In the 1980s, the PC was invented. The Wintel standard became established by the mid-1980s, leading to a decline in hardware prices and rising demand for the applications. The PC was for retail users, who were reliant on product software. Those PCs lacked both the programming capacity and performance needed by enterprises. Therefore, it had no impact on the custom software business.

3. The growth of India’s IT industry

The implantation of a technically sophisticated industry like software into a less developed host country has typically been explained by the access of transnational corporations to local resources facilitated by policy reforms. Tier-2 cities like Bangalore, Pune, Ahmedabad, etc. began to grow in importance in consequence. It had several advantages: (1) Infrastructure was cheaper: Firms were attracted by cheaper real estate as compared to metros software technology parks was established in such cities. (2) Labor was cheaper. (3) Many MNCs came to India; these included the pioneers IBM, HP, Accenture, Oracle, GE and Dell. In today’s date many custom software development services India have come up in the Indian market which offers very unique and useful services.

4. Conclusion

The article explained the evolution of software development services India Industry from its origins in 1974 to the present time. Domestic entrepreneurship drove the industry’s origination, survival and innovation. The private sector, found an innovative solution, that of exporting programmers instead. The growth of the industry, which happened in the mid-1980s, was preceded by a paradigmatic shift in government policy from hostility to the private sector to support for it. This article’s contribution to the literature is to show that it is possible to develop sophisticated industries even when many of the conditions that have typically been required elsewhere are missing. But, the absence of certain initial conditions, notably the absence of supportive policies to induce TNCs, can cause certain weaknesses to be embedded in the industry. 

Author Signature: Shreyans Agrawal (ifour.shreyans.agrawal@gmail.com)

No comments:

Post a Comment