Weakness in IT Sector


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WEAKNESS IN IT SECTOR

 

  • For many organizations, measuring the outcomes of the technology investments is a frustrating exercise because of the confusion over what should be measured and how to define the value of IT. Business investments are judged to have value only if their contribution to the output of the business could be distinctly quantified. The ability to assign value to IT business outputs is far more difficult than a simple cost/benefit analysis. Most IT investment decisions based on standard ROI (return on investment) and NPV (net present value) assume a static business scenario.
  • Low telephone, PC and Internet penetration
  • Inadequate utilization of IT budgets by Government departments/PSUs leading to low domestic computerization. Due to such a hype in the tech boom the govt had planned to invest crores of rupees in its development. But later on it was seen that some pub companies had the comp but not the staff to work on it and in some places they had already sent their staff for learning but the comps were not ready or were very few. No proper implementation.
  • Lack of localization of software-low availability of regional language software
  • Inadequate IT skills base, worsened by the “brain drain”.

 


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