A country is a complex system consisting of a set of elements connected by multiple and non-linear relationships. Technology foresight, commonly defined as a systematic process to identify critical technologies [1] [2] that will allow countries to develop consistently and reach their goals, has been growing in importance during the last two decades.

 Technology foresight (TF) has been used to identify critical technologies that may be considered as leverage points of countries as a whole system. In recent years, many countries have developed foresight exercises to identify scientific and technology opportunities for medium and long-term goals [2].

 Japan led the process in the ‘70s, undertaking the Japanese Technology Forecast Delphi as its first effort, which surveyed a more than 30-year time span, covering 644 topics and using nearly 2,500 participants [3]. The exercise has been repeated every five years, and in the last exercise (2003) it covered more than 1,000 topics with over 4,000 participants.

 Soon other countries like Korea, Thailand, Germany, Australia, Austria, France, Holland, Hungary, Ireland, Italy, Spain, New Zealand, Sweden, U.S. and the U.K. started similar activities.

 In the case of Latin America, an important initiative came from UNIDO, part of the United Nations (UN) since 1985, in cooperation with the International Centre for Science and High Technology (ICS).  In Trieste, Italy (1999) UNIDO came forward with a proposal known as the Technology Foresight Initiative for Latin America and the Caribbean (TFI LAC), the main purpose of which was to promote industrialization in the following group of Latin American and Caribbean countries:

 IT Quality Factors

 International standards are considered today as the essential requirement to compete in international markets. India has 42 companies satisfying the international software standards from the Software Engineering Institute - Capability Maturity Model (SEI CMM) Level 5 from the total of 62 in the world, representing 68 percent of the total number of companies. Also, 316 Indian software companies have acquired quality certifications. Indian IT companies serve more than 50% of the Fortune companies.

 Tax Incentives

 The Indian government is promoting activities that leverage social and economic development through tax incentives. For example, there is a ten-year tax holiday for ventures engaged in developing and/or operating an infrastructure facility, a ten-year tax holiday for companies that generate and/or distribute power, a five-year tax holiday for telecom activities including Internet services and broadband networks, and a five-year tax holiday for other new industries. Also, companies under the umbrella of software technology parks (STP) get additional benefits [3] as follows:

-          100% foreign equity permitted;

-          Duty free import;

-          Corporate income tax exempted up to 90%;

-          Dedicated data communication links; and

-          Export certification at a single point.

 Human Pool

 Human resources are considered India’s most important asset. Education is regarded as a leverage point, summarized in the following statements [4]:

-          India has around 250 universities and 11,549 colleges.

-          India has nearly 600,000 IT professionals.

-          India has the second largest English speaking population in the world. Indian engineers use English as a first language.

-          India is recognized for its strong education system, which emphasizes mathematical and logical reasoning.

 In summary, India is leading the world software industry because the country identified critical requirements and has invested necessary resources in terms of people, time and money along with a consistent government policy that fosters the foreign IT industry.

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 References

[1] CIA- The Word FactBook 2002. http://www.cia.gov/cia/publications/factbook/geos/in.html.

[2] Nasscom-McKinsey. Strategic Review 2002. 

[3] Nasscom. Please visit http//www.nasscom.com for detail information.

[4] http://www.infosys.com

 To contact author please send e-mail to grueda@pdx.edu

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