Impacts of App Economy on Indian IT sector
The rapid and overwhelming growth of apps can have a transformative impact on livelihoods and businesses are supported by empirical evidence that is being very carefully collected across the globe.
By creating and building smart phones more powerful and robust, apps, aided by high-speed networks and innovation can have very essential productivity enhancing impacts throughout the economy. This new evidence on the ‘app’ economy comes very close on the heels of identical evidence for mobiles and World Wide Web that is now firmly established as part of telecom folklore.
It is quite useful to analyse and understand the value of a very sound and competitive telecommunications system to completely appreciate the route through which app impacts are created and transmitted. It has been undoubtedly proven that access to telecommunications improves our productivity remarkably by; inter alia, reducing information asymmetries and containing transactions costs.
Since mobiles have replaced most of the fixed lines in developing economies, the overall growth impact of mobile device is higher than that for developed economies. Evidence of the impacts of apps could be expected to be along identical lines for developing economies. On contrary to simple mobile telephony, the app economy prospers only in the presence of a technological ecosystem rather than in isolation.
The app economy also shares complementarities with India’s well established and booming IT software services industry.
The economic crisis of year 2008 brought the IT industry and related sectors under pressure and software firms resorted to layoffs and/or a slowdown in fresh recruitment.
The major challenge from Chinese and Russian firms exacerbated the situation. The upcoming app economy can become a readily backed solution for graduating computer science engineers/ experienced IT professionals in India. With a correct guidance, adequate training and orientation, India’s talented software engineers and developers can be absorbed in this steadily expanding and exploding sector. For the United States of America, apps are credited to have created more than 6, 75,000 jobs as of December 2015. The cumulative effects of mobile economy estimate the direct, indirect and induced employment multipliers for India’s app sector and also help to identify constraints in the development, distribution and usage of apps. Further study has so far attempted to capture the economic and social impacts of apps in India. The app culture has developed an environment of steadiness and hope for the Indian youth IT aspirants with an assurance of a bright future in this field.