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India's Software Exports: Reply to Mr. Aggarwal

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> > Dr. Roy does not seem to understand the basic nature of the software

> industry.

Mr. Aggarwal may be right to the extent that I quite likely understand
than do many others, but I did give a talk on the economics of IT in
Bangalore a few months ago, and am likely to do similar things again
shortly, so perhaps my understanding is not so bad.    However, nothing
Aggarwal has said below seems to me to indicate that he or I or anyone
on IPI or anyone else anywhere, including Nasscom's Dewang Mehta and
everyone at Harvard and McKinsey, has the faintest idea at the moment of
to practically measure India's software exports in any meaningful
way.    My
original question stands and on this I would be extremely happy to be
enlightened:  what is the precise basis for the projection of $87 bn in
software exports by 2008 or whatever?   How far is it genuine and how
far is
it industry-hype or pie-in-the-sky?

Subroto Roy

> Indian software services firms win orders from international clients
> develop new applications or to modify the client's existing
> There is no software trade per say.  The only software that Indian
> would need to import are developer tools and off the shelf packages
> Windows, Oracle, etc., the value of which is almost insignificant
> to the value of the client order.   Once you have the basic software
> place, that serves as the IT infrastructure that is used to service
> clients.  Indian software companies do not need to import software for

> single client order.
> Dr. Roy is correct in stating that nonsense can be produced anywhere.
> However he should recognize that in the IT world, a company's market
> valuation can increase or decrease in minutes on the upgrade or
> an influential analyst.  My point was merely that there is typically a

> direct correlation between the track record of an institution (and the

> knowledge base of its key members) and the accuracy of its assessment.

> >From: "Dr. Subroto Roy" <sroy@vgsom.iitkgp.ernet.in>
> >Reply-To: debate@indiapolicy.org
> >To: <debate@indiapolicy.org>
> >Subject: Re: India's Software Exports: Mr Aggarwal's likely error
> >Date: Thu, 1 Feb 2001 11:21:14 -0800 (PST)
> >

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