Swot Analysis It Industries in India

Topics: Software engineering, Software development, Software industry Pages: 10 (3221 words) Published: March 22, 2011
Study of Indian Software Industry based on SWOT Analysis
HUANG Feixue1, LI Zhijie 1 Department of Economics, Dalian University of Technology, Dalian, P.R..China, 116024 2 Research Institute of Nonlinear Information Technology, School of Computer Science and Engineering, Dalian Nationalities University, Dalian 116600, China huangfeixue@yahoo.cn Abstract This study’s objective is to probe of Indian Software Industry issue. The method is formulated as basedon SWOT(Strengths, Weaknesses, Opportunities, Threats) theory. This paper presented a strategical choice model of SWOT analysis. To study the effects of the proposed model, the case based on fact are discussed. The result shows that the models is feasible. This study’s conclusions could indicate the enlightenment that the software industry of China is energetically developed. Key words CMM, Software Industry, SWOT, India 2

1 Introduction
On the background of global economy depression, in 2002, the output value of Indian software industry is $10.1 billion, has a 22 percent increase than 2001; the volume of exports is $7.68 billion, has a 29 percent growth according to NASSCOM. It is predicted that the volume of exports of software will reach $10.0 billion, a 30 percent increase than this year. According to survey from Fortune, almost the biggest 100 companies in America treat India as their first choice of abroad software[1]. The technological innovation of the Internet and the worldwide web have expanded the debate of the nature of organizations and the way people work[2]. Both China and Indian are developing countries with large population and long and great history. These two countries develop their software industry at the same time with great potential by common consent. the approximate number of software corporation is about 6000 in China, and total income has reach 390 billion RMB. However, there are only 25 company whose incomes exceed a billion RMB and the most of them are small & medium business[3]. At present, the scale of Indian software industry exceeds us. Thus, this paper makes study of Indian software industry based on SWOT analysis, and find out the reasons of rapid grown-up and borrow ideas for Chinese software industry.

2 Swot analysis method
SWOT is abbreviation of the first letter of Strengths, Weaknesses, Opportunities and Threats. SWOT analysis aims at interior ability (Strengths and Weaknesses) and external environment (Opportunities and Threats) of subject investigated, and shows them with matrix form and uses the means of system analysis to research. Strengths are particular resource and competitive power of subject investigated, which competitors cannot match, and represent the assets of completive power. Weaknesses mean drawback and insufficiency of subject investigated relative to competitors, which represent Competitive Liability. Opportunities and Threats are positive and negative impact of subject investigated from the trend of external environment change. Table 1 Internal factors External factors Opportunities(O) S+O exerting advantages seizing opportunities S+T W+O avoiding disadvantages seizing opportunities W+T Model of SWOT Analysis Weakness(W) Strengths(S)



exerting advantages minimizing threats

avoiding disadvantages minimizing threats

In substance, there is a transformable dynamic relation between opportunities and threats, strengths and weaknesses, meanwhile the four factors can be bound to each other as a whole, it is competition that makes these factors together. Five Force Framework tells what might we do, and SWOT answer what can we do, namely, how to do better than competitors[4], thereby establishing a lasting competitive advantage.

3 Indian software SWOT Analysis
3.1 Strengths 3.1.1 Government attention Preferential policies Indian seems to have comprehensive understanding that software is treasure in knowledge economy Era. India government plays an important role during...

References: [1] http://www.people.com.cn/GB/other4583/5366/5368/20020805/792715.html,2002-08-05. [2] N. G. Beamish and C. G. Armistead Selected debate for the arena of knowledge management: new endorsements for established organizational practices. International Journal of Management Reviews, 2001, 3(2): 101 111. [3] Developing review of Chinese information industry in 2005 year. http://www.mii.gov.cn/art/2006/03/15/art_62_8308.html,2006-03-15/2006-06-22. [4] Michael E.Porter. What is Strategy. Harvard Business Review, 1996 ,November-December:61 78. [5] http://www.people.com.cn/GB/it/48/297/20030211/921384.html,2003-02-11.

[6] HUANG Feixue, SUN Xiaoli, SHEN Hongshu. Exploration of educational pattern for software talents in India. Journal of Dalian University of Technology(Social Sciences), 2002 23(4) 56 59. [7] HUANG Feixue, ZHOU Dongqing,SUN Xiaoli, LI ZHijie. Research of Capability Maturity Model for Software. MINI—MICRO SYSTEM, 2002 23(3):370 373. [8] http://www.wtcc.net.tw/wtcc1/invest/in_Default.asp, 2003-05-12. [9] http://www.chinabyte.com/busnews/216482844392816640/20030513/1700285.shtml, 2003-5-13.
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