IT News:Democratising IT

A New Model For PC Penetration
INDIA has emerged as a global leader in the advance of information technology. Yet the country faces a fundamental challenge — building on its successes by enabling greater access to technology for its people. This will drive expanded economic growth and opportunity. Less than 3% of Indians own a personal computer — compared to nearly 8% of Chinese, almost 14% of Brazilians and more than 15% of Russians. Despite the very low penetration of computers in India, the impact has been profound. India is home to three of the world’s 10 biggest IT firms — Tata, Infosys, and Wipro, and already generates nearly $40 billion in revenues from its IT software and services sector. Nasscom forecasts this figure to grow by nearly 27% next year. It must be recognised that the benefits of broader IT use and deeper Internet access are substantial, and will be a catalyst for — not a result of — economic growth and modernisation. India is already benefiting from e-governance initiatives that deliver real-time tallying of results of the world’s largest elections and from technology-driven distance learning that brings the world’s educational resources to students without regard to location or economic background. But cost has been a major roadblock for broader technology adoption in India. Reducing taxes and tariffs is essential to facilitating broader access to technology and driving growth in the technology sectors. Global hardware exports are 43% of Chinese exports versus only 2.3% for India. India is clearly missing out on a big opportunity. If it doesn’t act soon, investments will go further into China and emerging countries such as Vietnam, instead of India.
Consider also that, in India, a typical desktop computer costs 44% of the average Indian’s annual wage. Brazil’s experience in supporting technology adoption is particularly instructive. Since reducing taxes on computer purchases two years ago, the PC market tripled, and more than two million families bought their first PC, making Brazil the world’s fourth-largest PC market. What was more important was the multiplier effect this had on the economy. Thousands of IT industry jobs were created and government revenue from the IT sector increased by 50%. But cost isn’t the only barrier. IT complexity will also threaten access to technology while increasing its cost and environmental impact. We are all members of what we at Dell call the ReGeneration — a new global movement concerned with the regeneration of not just our businesses but also our planet. Environmental protection efforts are improving, as reflected in the Nobel Prize jointly awarded to former US vice-president Al Gore and the Intergovernmental Panel on Climate Change headed by Rajendra Pachauri. And technology is an important part of these efforts. The future will bring even more benefits.
By 2020 microprocessors will run one thousand times as many computations per second as they do today. That will mean enormous gains in productivity and efficiency, giving people unimaginable power to access, organise, and transform information. Indian citizens will more fully benefit from this progress as government and industry leaders strengthen their cooperation. This will help create the conditions in which IT can flourish and reach all people, businesses, and institutions across the country. India plays a pivotal role in global IT. Technology users in the western world benefit every day from the work of bright, talented Indian employees and their constant innovation. But more than serving as the world’s software writer or back office, India is harnessing the productivity, efficiency, and innovation benefits of IT as a foundation for global economic competitiveness. I see industry working, with great commitment, with India’s government to build on this progress, and to help further democratize access to technology, so that more Indian citizens enjoy even more of technology’s benefits with an ever-decreasing impact on our environment. That is our shared responsibility. By harnessing these forces — the democratization and simplification of technology, we can make a positive impact not just on our economies, but also our planet.

(Michael Dell)