Indian software industry is of recent origin. It has been growing since signing of international treaty in1994 by Indian government. Since then, India has been emerging as one of the major giant in the field of Information Technology Enabled Services (ITES) and Business Process Outsourcing (BPO). According to National Association of Software and Services Companies (NASSCOM), IT Business Process Outsourcing (BPO) sector has been contributing 7.5 per cent of India’s GDP, 25 per cent of India’s total export and 10 per cent of total service sector revenue in 2010-11. IT services is the fastest growing segment among the others, it has been growing by 22.7 per cent, and generating export revenue (including hardware) of $69 billion. The share of software service exports from India was recorded around 58 per cent of the total global software service exports in 2011-12.
This study is conducted to explore the contribution of Indian software firms in the development of Indian economy since its inception along with it emergence as one of the new industry on the map of Indian corporate and the world. We identify the challenges faced by these industries in general and issues in financing of these firms particular. For this task, we organize the present study into eight chapters.
This study explores the drivers of Indian software industry growth, for that we run linear regression. We empirically test the impact of new economic reforms on the Indian software industry. Using the various econometric techniques, before and after the introduction of economic reforms period growth rate is compared to know whether there is any change in the growth story of the Indian software firms during the reforms period. Present study reviews the employment growth in Indian IT-BPO firms and also tests empirical relationship between export revenue of IT-BPO firms and employment growth in software industry. Main focus of the study is to find out the issues in financing of the new economy firms in India. In the broad perspective, this study is pursued for finding out which sources of finance are being tapped by these firms for financing themselves.
In order to test hypotheses relating to drivers of software industry growth in India, regression I and II have been run and results appeared thereof shows that the coefficient values of the variables, money supply (M3GDP), domestic capital formation ( DCGDP), opening of economy (OPGDP) and stock foreign exchange (FRGDP) are significant at 10%,
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Backgroud
- Rational behind the Study
- Objectives of the Study
- Hypotheses
- Study period and Data Sources
- Methodology
- Organization of the study
- Literature Review
- Introduction
- Studies on development of software firms across the world and India.
- Literature on Financing of Firms and Determinants of Capital Structure
- Conclusions
- An Analytical Review of Indian Software Industry
- Introduction
- Nature of New Economy Firms
- Origin and Development of Indian Software Industry
- Policies of Government for Promoting Software Industry
- Role of Industry Organization NASSCOM
- Distribution of Domestic IT Market
- Overview of the Talent Pool Available In India
- Conclusions
- An Empirical Study of the Drivers of Software Industry Growth in India
- Introduction
- Drivers of Software Industry
- Data Used for Analysis
- Methodology and Model Used
- Results and Discussion
- Conclusions
- Empirical Analysis of Growth of Software Industry during the Reforms Period
- Introduction
- Share of Software Services into Total Exports from India and Proportion of GDP
- World of Software into Total Software Export
- World Market for Computer Software and Services Export
- Exporter Computer Services (Top 10 Firms)
- Activity Wise Distribution of ITES/BPO Services
- Trends in Software Growth of Software Industry in India
- Indian Software Industry Growth Before and after Liberalization
- Result Analysis and Discussions
- Testing Parameter Stability: Chow Test
- Structural Changes in the Software Earning Regression
- Unit Root Test
- Phillip Perron Unit Root Test
- Cointegration
- Model Stability and Interpretation of the Results
- Conclusions
- Investigation of Employment and Export Earning Relationship in India
- Introduction
- Growth of IT-BPO Sector in India
- Trends In IT-BPO Revenue and Employment
- Indian Software Exports by Destination
- Literature Review
- Methodology and Data Analyisis
- Conclusions
- Trends and Issues in Financing of Software Firms in India
- Introduction
- Objectives, Data and Methodology
- Background of the Study
- International Studies
- Domestic Studies
- Trends in Financing of the Indian Software Firms
- Financial Position of Indian Software Firms
- Mean Comparison Test
- Conclusions
- Conclusions and Policy Suggestions
- Introduction
- Major Findings of the Study
- An Analytical Review of Indian Software Industry
- Role of Drivers of Software Industry
- Empirical Testing of Impact of New Economic Reforms
- Empirical Relationship Between Export and Employment in Software Industry
- Issues in Financing of Software Firms
- Policy Implications of the Study
- Limitations of the Study
- Scope for Further Study
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report analyzes the financing of new economy firms in India, focusing specifically on the software industry. The report aims to understand the drivers of growth in this sector, explore the relationship between export earnings and employment, and identify key issues related to the financing of software firms. Key themes covered in the report include: * **Growth Drivers of the Indian Software Industry:** The report examines factors that have contributed to the significant growth of the software industry in India, including government policies, the role of industry organizations, and the availability of talent. * **Impact of Economic Reforms:** The report analyzes the impact of economic reforms on the growth of the software industry and its export performance. * **Employment and Export Relationship:** The report investigates the relationship between employment levels in the IT-BPO sector and export earnings, highlighting the industry's contribution to economic growth. * **Financing of Software Firms:** The report examines trends in financing software firms in India, highlighting both international and domestic perspectives. * **Challenges in Financing:** The report identifies challenges and issues that software firms face in securing financing, providing insights into the specific needs of this sector.Zusammenfassung der Kapitel (Chapter Summaries)
- **Introduction:** This chapter provides a general overview of the research, defining the scope and objectives of the study, and outlining the methodology used. It establishes the context of the research and the importance of understanding the financing landscape for new economy firms in India.
- **Literature Review:** This chapter reviews existing literature on the software industry, specifically exploring studies on the development of software firms globally and in India. It also examines literature on the financing of firms and the determinants of capital structure, providing a theoretical framework for the research.
- **An Analytical Review of Indian Software Industry:** This chapter analyzes the Indian software industry, delving into the nature of new economy firms, the industry's origin and development, government policies aimed at promoting the sector, and the role of industry organizations like NASSCOM. The chapter also examines the distribution of the domestic IT market and the availability of talent in India.
- **An Empirical Study of the Drivers of Software Industry Growth in India:** This chapter focuses on the key drivers of software industry growth in India. It examines factors such as the role of government policies, technology advancements, and the availability of skilled labor. The chapter uses data analysis to identify and quantify the impact of these drivers on industry growth.
- **Empirical Analysis of Growth of Software Industry during the Reforms Period:** This chapter investigates the impact of economic reforms on the software industry in India. It analyzes the share of software services in total exports, the proportion of GDP attributed to the software sector, and the trends in software industry growth before and after liberalization.
- **Investigation of Employment and Export Earning Relationship in India:** This chapter explores the relationship between employment levels in the IT-BPO sector and export earnings in India. It analyzes trends in IT-BPO revenue and employment, examines Indian software exports by destination, and investigates the impact of the IT-BPO sector on overall economic growth.
- **Trends and Issues in Financing of Software Firms in India:** This chapter delves into the financing landscape of Indian software firms. It explores trends in financing, analyzes the financial position of software firms, and identifies challenges and issues related to obtaining financing. The chapter also includes a review of both international and domestic studies on the financing of software companies.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this report include new economy firms, software industry, India, financing, growth drivers, economic reforms, export earnings, employment, IT-BPO sector, challenges in financing, and financial position of firms. These terms encapsulate the core concepts and themes explored in the research, offering a comprehensive overview of the study's primary focus.- Quote paper
- Dr. Sanjay Tupe (Author), 2012, Issues in Financing of New Economy Firms in India, Munich, GRIN Verlag, https://www.grin.com/document/288171
