SWOT Analysis OF Indian IT Industry: Weaknesses

Previously we have seen strengths of Indian IT industry. But apart from its global infrastructure and esteemed reputation in international market, Indian IT sector also face some major challenges and issue which act as hindrance in the development of IT industry in Indian Arena around the globe. Now we examine “W” of SWOT and learn weaknesses that are needed to be take care for the smooth operation of software development in India  So, Here we enlisted all the points which are weakening the position of software development in the country.

ack of Package Orientation:

Although, some of the software companies have started making shrink-wrapped software packages, the Indian IT industry as a whole is still not oriented across development of world class 'shrink-wrapped' software applications and packages. Thus, the industry is not able to take benefits of a multiplier effect for growth in revenues.

Lack of Domestic Computerisation:

Due to Lack of adequate computerisation, this has led to a relatively weak domestic and local software market. Even, the PC penetration rate is very low these days.

Lack of Internet Penetration:

With very low penetration of PC’s, it is but obvious that Internet penetration is also poor. At the end of the year 2000, India could only boast of 7,15,000 Internet connections with about 2.8 million users. The recently announced Internet Service Provider policy is expected to improve the situation.

Original Technology:

The Indian software industry possesses the domain expertise to absorb and use the latest technology. However, barring a few exceptions, it has still not able to produce enough original technology breakthroughs. Succinctly put, the IT industry has not created original operating systems (OS) or any other new computer languages and technologies, which could be used globally.

Mission Critical Real Time Operations:

Many of the leading software companies in India have managed software development for mission critical real time operations. However, the industry as a whole still does not have much expertise and experience in this area.

Project Management Skills:

As the Indian software IT industry has been growing at a fast pace, majority of the project managers are becoming entrepreneurs, thus  as a result ,creating a  gap in demand and supply of project management skills.

Venture Capital:

In developing a robust venture creation procedure, India still faces lots of constraints. To create a prolific venture community, India requires focusing on boosting every stages of venture creation process and having simplified procedures so that the domestic and local Venture Capital movement can flourish and foreign Venture Capital funds can be attracted.


With a few exceptions of isolated cases, not much exists in providing software applications in innumerable local languages. Thus, computer software development penetration in India is restricted to merely the English speaking majority.

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