NASSCOM Prediction

This journey into the information age will be for improvement in the quality of every aspect of human life, emergence of a competitive society and a vibrant economy of new age
technologies through transparent governing systems, sound infrastructure and skilled human
resources.

With the above objectives in mind, the State Government had engaged NASSCOM (National
Association of Software and Service Companies) to suggest the IT Vision 2010 for the State for the new millennium. The present policy is largely based on NASSCOM study and the outcome.

STRENGTHS AND AREAS NEEDING ATTENTION

The NASSCOM conducted an extensive survey amongst 11 cities/towns to find out the
relative advantages/disadvantages of these cities/towns to attract IT investments. These
cities/towns are Bangalore, Bhubaneshwar, Calcutta, Chennai, Delhi, Ghandinagar,
Hyderabad, Mumbai, Pune, Trivandrum and Shimla.

The survey questionnaire consisted of the following questions:

• What is the availability of skilled manpower or knowledge worker?
• Availability/Performance of Data communication facility?
• Availability of power supply and its quality?
• Educational facility for dependents?
• Proximity to well developed airports? And also connection to the other parts of the
  country?
• Transportation facility within the State and neighboring States?
• Cost of living?
• Cost involved in setting up an IT unit in a particular State?
• What is the overall quality of life in the city?
• The size of Domestic Market around the location?
• Climatic condition of the location/state?
• Proximity to the Domestic and International market?
• Attitude of State Government towards the investors/new companies setting up in the
  State?
• Composite rating of the State?

• Power Supply
• Climate
• Attitude of the State Government

Further, the ratings in the following areas were also commendable:

1. Availability of good communication facilities
2. Educational facilities for dependents
3. Transportation facilities within the city/state
4. Cost involved in setting up an IT unit
5. Quality of life

The NASSCOM's survey makes it clear that Himachal Pradesh is uniquely positioned to
exploit its inherent as well as inculcated advantages bestowed upon it for furthering IT in the State.

The major advantages include:

• Very good climatic conditions,Pollution free locations.
• Excellent power situation.
• Good communications network.
• Relatively low cost of setting up of operations for a software unit.
• Good quality of life.
• Good hospitality industry.
• Capability to increase the pool of skilled manpower, engineering colleges and other
  educational institutions.
• Availability of educational facilities for dependents.
• Proactive attitude of the State Government.
• Presence of national banks/financial institutions .

However, as per the survey, efforts need to be made to improve the following:

• The current infrastructure would need to be upgraded to cater to the needs of software
  development centres.
• The quantum of available skilled manpower would need to be increased.
• Appropriate environment would need to be created to facilitate the growth of IT industry in the State.
• The facilities at the existing airports in the State would need to be upgraded.

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NASSCOM'S PROJECTIONS

With a coordinated action plan by the Government and Industry, NASSCOM has
projected that the IT software and services industry in the State of Himachal Pradesh can grow
at an accelerated pace to achieve an annual revenue of Rs.20,000 crore (US$ 4.7 billion) by
year 2009-10, which could be as much as 4-5% of the projected turnover of US$ 100 billion of the Indian software and services industry in that year.
Out of the Rs.20,000 crore of projected revenue from IT software and services industry
for Himachal Pradesh in 2009-10, it is expected that Rs. 14,000 crore will come from exports
and Rs.6,000 crore from the domestic market.

The break-up is projected as follows:

The break-up of Domestic market of I.T. software and services is estimated as:
Domestic Market Projections 2009-10