Indian Service Sector

Question 1

What % of GDP is the service sector?

Answer 1

50%

Question 2

Why is the service sector such a big contributer?

Answer 2

India has a high pop of skilled workers

Question 3

Why are IT + Software companies attracted to India?

Answer 3

2nd largest English speaking human resource in the world

Investments and tax incentives for exports in such sectors (electronics, telecom and software

Large market size

3rd largest world brain bank

Stable democratic with over 50 year independence

Much lower labour costs

Good infrastructure for transport, power and data communication

Question 4

Who fueled the service sector and how?

Answer 4

UK + USA fuelled the service sector in India because Indians migrated to gain skills to take back home

Question 5

What % of pop are still engaged in…. + other primary activities

Answer 5

70% of pop engaged in agriculture

Question 6

What has India become the world leader in?

Answer 6

Back office functions includes: call centres, dealing with accounts, data entry + knowledge services

Question 7

What did the outsourcing to India from developed countries begin + progress to?

Answer 7

Began with software development but progressed to call centres

Question 8

Where has become the centre for ICT?

Answer 8

Bangalore

Question 9

Why has Bangalore become the centre of ICT?

Answer 9

Grants + tax incentives for IT industry

1991: Software technology park built

Now over 6 technology parks built

Question 10

Problems

Answer 10

Unions in developed world are concerned about job losses + in some cases have pressurised firms to bring jobs back to USA + UK

Organisations in developed world have voiced concerns about standards of privacy + data protection in Indian IT comps