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Is India Becoming the Next IT Giant?
One of the fastest growing industries in India, the country is now poised to become a global leader in technology. In 1984, Texas Instruments opened its facility in India, opening the doors for an expansive tech boom to take place. Since then, the country has seen a great deal of economic growth within the technological export market, causing other world business leaders to take notice.
Indian Technology Exports Are Growing
The list of technology exports has expanded quite a bit in India over the past several years, increasing from less than four percent in 1998 to over 25% in 2012. Almost 90% of India’s exports are from the Bangalore, Kolkata, Hyderabad, Trivandrum, Chennai, Noida, Prune, and Mumbai. While this unique export has spread across, the country, the three cities leading the way in technology are:
- Bangalore. While many Americans may not be regularly talking about Bangalore, they should be. Locals have come to know it as the Silicon Valley of India as it has become home to some of the biggest tech companies in the world. Although it used to be known for its farmlands, the city now produces 1/3 of India’s IT exports and has become one of the primary global information technology hubs of the country.
- Hyderabad. Hyderabad has become the major IT and support hub in India, and large multinational companies are setting up roots in this prime location. Microsoft has placed their first development center in the heart of this Cyber city, and many other large tech giants such as TCS, Wipro, and Infosys are following suit.
- Chennai. The third largest exporter of IT services is Chennai, and it has become one of the leaders in backup operations within the country. One of the large IT giants, Cognizant, also runs its Indian headquarters out of this tech- savvy city.
India’s Largest IT Business Models
India has taken over quite a bit of the technology universe, and they have mainly found their niche within IT and other support services. The main jobs that have been dominating in the country include:
- Software Support, Installation, and Customer Service. This includes some of the many call centers that Americans have been accustomed to speaking with when their systems are on the fritz. It also encompasses systems integration, training and education related to software, and many processing systems.
- Data Processing. When companies need to digitize a ton of files quickly, Indian businesses can be an excellent place to turn to. Many specialized companies are able to quickly transcribe medical records, perform remote maintenance, and complete other back of office operations that are time consuming for one person to complete.
- Visual Effects. While Bollywood is notorious for their booming film industry, the Indian market also has a large hand in the American film business. Rotoscoping, which is the process of “cutting out” background or foreground elements from footage, can be time consuming and expensive for highly paid American artists to complete. Many studios and smaller boutique visual effects facilities have begun sending this work to India for cost effective output and fast turnaround.
The Indian Advantage
Individuals who are not actively following the technology industry may be wondering, “why India?” When it comes to exporting technology, American and European based companies have found cities like Bangalore to be cost effective solutions to their problems. The Indian workforce is incredibly young, educated, and intelligent. Most of them also actively speak English in a relatable capacity. Furthermore, these smart, hard working employees are available at less than a quarter of the salaries paid to US workers. This has led Indian tech giants to bulk hire countless people over the past few decades.
Creating Jobs for Indian Employees
In addition to providing a low cost solution for many countries to outsource some of their IT systems, the technology sector has provided many new employment opportunities to its residents. According to the National Association of Software and Services Companies (NASSCOM), the Indian tech boom directly employed about 2.8 million people in 2012. Indirectly, the business was noted to employ even more, ultimately affecting the careers of an additional 8.9 million individuals.
Current Challenges for the Indian Tech Market
While the road to technological success has long been paved for India, there are a few factors standing in their way of becoming the largest global tech leader. As the Indian market continues to grow, they are also facing competition head on from other globalized countries that have started taking part in the worldwide technology surge, including China and the Philippines. Network speeds and coverage are also far slower in India than some of the other up and coming tech countries, which may cause them to unintentionally lag behind.
In addition, a few growing pains are to be expected with any new business plan, and many Indian companies are certainly experiencing them. While countless American companies are outsourcing their low level work to the country, many of them are not taking the time to set up an extensive and long-term infrastructure. While some Indian businesses are beginning to cultivate the high-level talent that is required to design and implement these systems, many are not yet up to the task.
Where Does India Need to Go From Here
One of the main ways that Indian companies can continue to grow as a tech giant is by altering their business plan. The country has begun to perfect their customer service and low level IT abilities, but Indians have not yet focused their energy on generating their own products. By focusing on training individuals for higher end work, they would be able to expand their workforce and talent pool exponentially.
Another way that India could edge their way into the innovative sector of technology is by offering additional services in the cloud sector of the computing universe. With mobile computing continuing to rise, many companies are seeking low cost solutions for cloud backup. With their extensive experience in completing offsite backups, Indian technology could be poised to further expand their services to this growing development.
With so much economic growth and job development taking place in India over the past few decades, the world will continue to watch them develop as a country and a technological leader in the not so distant future.
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What is the Growth Potential for IT Jobs and Data Center Specialists Over the Next 10 Years?
While unemployment rates have eased slightly as of late (falling under 6% for the first time since 2008), the effects of the recent recession are still felt in numerous industries. As a result, many workers are seeking recession-proof opportunities in job markets exhibiting continuous growth. The IT industry is one such market that has offered consistent employment opportunity in the face of economic downturns.
Thanks to the many new innovations in computing, as well as strides made within the realm of social media and mobile devices, companies all over the world are seeking bright and eager tech-professionals ready to take on the world. Accordingly, the future looks bright for those in the computing field, with numbers expected to rise through to 2020.
Statistics Illustrate Rapid Progress Throughout the Industry
Just one look at the relevant statistics shows that jobs related to the IT industry are on a steady uptick. Many facets of the computing industry are experiencing stable growth, from mobile app development to network administration. According to a report undertaken by the U.S. Bureau of Labor and Statistics, computer-related occupations are projected to see as much of a 22% increase by 2020.
In many cases, there are more jobs available than suitable employees. Additionally, salaries for IT professionals have held steady or even increased in some cases, despite the myriad of economic woes experienced in other job industries. Because of these figures, a number of incoming college students are choosing IT studies as a means of making a splash in the job force upon graduation.
Growth by Country
While the U.S. market is experiencing exponential job growth thanks to the IT industry, this success isn’t simply relegated to one country or region. For instance, India has experienced a recent boom in small and medium sized enterprises (also known as SMEs) related to internet technology. This is due to improved access to up-to-date technology, thereby allowing tech companies the ability to work with a vast number of burgeoning businesses.
Additionally, China is also experiencing tech-related growth thanks to increased demand. This expansion has much to do with the country’s recent boost in internet users, with as many as 800 million online subscribers projected for 2015. This has caused many Chinese tech companies to implement aggressive recruiting procedures to be better prepared for the increase in business.
IT growth has also been spied in some unlikely places. Tech start ups are enlivening economies all over Europe, as illustrated in cities like Dublin, Ireland and Eindhoven, Netherlands. Israel is another notable contender for future job growth, thank to the emergence of Tel Aviv’s very own Silicon Valley. This area has the designation of being home to the highest density of tech startups in the world, which will no doubt lead to many exciting innovations over the next few years.
Web-Hosting Companies Are Experiencing Monumental Growth
For a more localized perspective on IT growth, one need only look at the current state of web-hosting. One example of this growth is illustrated by web-hosting giant Go Daddy’s staffing surge, which included the addition of numerous high-profile IT professionals over the last year. The company is also hard at work on the construction of a brand new facility, which entailed the hiring of over 300 workers. These updates are being undertaken for future expansion of the company’s services, which will include platforms for social media and mobile devices.
Other firms also have an eye on future expansion. Burgeoning web-hosting firm Endurance has recently added a number of employees thanks to increases in both revenue, as well as customer base. These increases come hot on the heels of the firm’s recent acquisition of India’s largest domain registration business for an astounding fee of $ 110 million.
While the above encompass merely two examples, they make it quite clear that web-hosting companies are in high demand. These numbers are bound to rise as more businesses look to expanding their online presences, which necessitates reliable and affordable web-hosting solutions suited to many diverse needs.
Cloud-Computing Is Also on the Rise
In addition to the increases seen in web-hosting opportunities, cloud-computing enterprises are also on the upswing all over the world. In just the European market alone cloud computing-jobs are expected to reach 3.8 million by 2020, with an associated revenue of $ 197 billion. These numbers are mirrored in other markets, as more companies become privy to the convenience that cloud-computing can offer to the performance of daily business functions.
While the number of predicted opportunities is certainly impressive, the high-profile of such positions is equally so. Amazon continues to be a sought-after employer by IT professionals, and this mammoth company is in pursuit of those with the necessary cloud-computing knowledge. Other companies in search of cloud-computing technicians include Google, Microsoft, and many emerging businesses looking to capitalize on the cloud-computing trend.
A Different View
While many are inclined to take a positive view of IT job growth statistics, some analysts warn that these numbers could be deceptive. This is because the tech-field can be an unpredictable setting, as evidenced by past booms and busts. A variety of factors could affect this expansion, including civil unrest, natural disasters, and even changing governmental policies. Even the most robust industry may not be able to withstand such occurrences, which could leave a wide selection of job seekers out in the cold.
There is also the fear that too many prospective applicants may saturate the computer industry, which could prove disastrous to the numerous students currently immersed in IT studies. While a world-wide decline is highly unlikely, even a regional decreased in IT jobs can have ripple effects across the entire industry. However, these events are only speculation at this stage. If recent occurrences are any indication, the IT industry will continue to provide exceptional opportunities to those currently seeking computer-related educations.
Marketing Efforts Tailored to the IT Industry
While a sizable selection of dependable IT professionals is essential to keep a company thriving, marketing can also play a large role in continued success. Fortunately, Hanei Marketing has the experience necessary to help your company achieve unparalleled success using our many innovative strategies. Contact a knowledgeable representative today to learn all that we can do for your business.
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Where Is the Next Generation of IT and Data Geniuses?
The United States currently hosts the top institutions for higher education in technology and engineering. However, institutions such as the Michigan Institute of Technology (MIT), the University of California Berkley, and the California Institute of Technology (Caltech) do not exclusively teach an American student population. Trends in international student mobility and immigration laws have a substantial impact on which nation will have future technology leaders.
Student Visa Policies, Languages, and Impact on Global Higher Education
International students often find universities in the United States attractive due to immigration laws. It is substantially easier to acquire a student visa in the United States than the United Kingdom, Australia, or Canada. Additionally, English has arguably become the international language for technology and engineering. Industries with large amounts of jargon typically adopt a single language for practical purposes. For example, the technology and engineering industry in the 19th century adopted German as its common language. Prior to that, Latin was the chosen “global” language for the industries.
Failure and Success of Technology Education in Different Nations
Academic concerns regarding technology programs are almost always highly subjective. The field moves at an extraordinarily fast pace in comparison to other industries. Higher-level education needs to be built on a solid foundation. Students need to be able to master basic concepts before they can fully understand abstract theory.
Teaching Young Students Advanced Concepts in China
In one approach, students are taught how to follow complex sequential instructions and memorize new material quickly and early on. Long-term studies suggest students who learn by this model have extreme difficulty understanding abstract concepts, which is a hallmark of the current technology industry. Currently, almost any technology program over a few years in length will have most specific subjects taught become obsolete by the time students graduate. Abstract thinking skills demonstrate the difference between success and failure in future technology careers.
Recent research also raises concerns regarding the fast pace which Chinese students learn math and science. Students learn how to ace advanced math tests at young ages, but they are not given a chance to fully develop abstract thinking skills. Additionally, ample anecdotal evidence from Chinese students studying technology and engineering in the United States also suggests curriculum hallmarked by the development of abstract thinking skills compared to “plug and chug” teaching method is more challenging.
China is also notorious for strict regulations, and regulations make global commerce in China difficult, especially in the technology sector. Top institutions such as the Hong Kong University of Science and Technology might not have the global buy-in for sustainable advancement.
Abstract Thinking Skills in the United States
The future of global technology is greater than learning basic coding and mathematical principles, and teaching programs need to focus on abstract thinking and problem solving after students master basic principles. The technology industry changes quickly, and developing cognitive abilities such as memorization coupled and processing speed is not as important as developing nonverbal and verbal intelligence. One large misconception is that verbal reasoning skills are not important in technology. Strong verbal abilities give students the tools needed to participate in a dynamic industry, beyond completing basic production work.
Challenging Immigration Laws in the United States and Global Mobility
Graduation is often bittersweet for international students. Whereas acquiring a student visa in the United States is relatively easy, acquiring permanent residency and the legal ability to work in the country is extraordinarily difficult. Immigration laws further promote global mobility, and the laws contribute to a breakdown in the entire higher education system.
According to data published by NAFSA, international students contributed $ 24 billion to the United States economy and supported 313,000 jobs in the United States. However, the best and brightest international students are often forced to return to their countries of origin. Immigration policies for international students can be confusing at best for all stakeholders.
One important point to note is students that choose to study at top technology universities in the United States often do not work in the United States, which makes it difficult to determine which nation will have future technology leaders and an edge in overall innovation.
Nations Hallmarked by Technology and Technology Education
Numerous Asian countries have a strong cultural focus on technology education. However, nations such as Japan and Singapore do not have the ability to absorb a large international student body. Top schools including the National University of Singapore and the Korea Advanced Institute of Science and Technology (KAIST) have demonstrated success in teaching students. Additionally, South Korea is heavily invested in research used in the private sector as well as academia.
The strong cultural emphasis on technology provides an ideal atmosphere for domestic students who are able to act as future leaders in their respective countries. Additionally, the cultural emphasis on academics and research easily translates to high positions in the future global marketplace. Revenue from the private sector could be integral to the future of Asian countries that participate in global commerce, unlike China.
The Current Leader in Training the Next Generation of Digital Workers
The United States is the current leader in providing higher education for the next generation of workers in the technology industry. It has kept up with two integral aspects of higher education. First, the United States has the capacity to attract top-tier professors and house a diverse student body. Second, the United States has immigration policies that make it easy for students to acquire necessary student immigration visas. However, the United States does not follow up on immigration policy after top students graduate.
Key Takeaways
- The United States has an expansive network of top universities with excellent technology-based programs, which can easily accommodate a global student body.
- Numerous international students choose to study in the United States due to easy acquisition of student visas compared to other nations such as Australia, Canada, and the United Kingdom.
- Teaching programs in China fall short due to a lack of focus on abstract thinking skills and problem solving skills.
- Smaller Asian nations such as South Korea and Japan do not have the ability to accommodate a large student body.
- Although numerous international students choose to study in the United States, many are forced to return to their respective countries of origin due to immigration laws.
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