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E-Commerce in IndiaHuman Skills Required for ECCountry IssuesGovernment InitiativesConclusion Outline
E-Commerce in India INDIA - GROWTH OF E-COMMERCE Year Total E-Commerce Transactions (in Million $) 1998-99 31.138 1999-00 103.848 2000-01* 489.154 2001-02* 1595.066 2002-03* 4253.509 2003-04* 8507.018 * Projections (Ref: Nasscom-McKinsey study)
E-Commerce in India INDIA - GROWTH OF INTERNET Date Internet Connections Users (in million) (in Million) Aug 15,1995 0.002 0.01 Mar 31,1996 0.050 0.25 Mar 31,1997 0.090 0.45 Mar 31,1998 0.140 0.70 Mar 31,1999 0.280 1.40 Mar 31, 2000 0.900 2.80 Dec 31, 2000 1.800 5.50
E-Commerce in India • Population 1012 Million • As of December 2000, there was a PC base of 5 million PCs. • More than 120 private ISP's operational by March 31, 2001 • More than 86 percent of top 100 corporate (who responded to the survey conducted in January 2001) have endorsed the Internet and electronic commerce as being an integral part of their corporate strategic framework for next year
E-Commerce in India • The Internet and E-Commerce industry employs approximately 82000 people( ref: Industry association study 1999) which include Web Developer, Web Designers, System Analysts, ISP Infrastructure Providers, Marketing Staff, E-Software professionals etc., • It is projected that by March 2003, the Internet and E-Commerce industry would employ over 3,00,000 people.
E-Commerce in India As per NASSCOM’s HRD survey, there were 3,40,000 software professionals employed in the country as on 31st March 2000 By 2008 we would require 2.2 Million IT professionals – 1.1 Million in the hard core IT sector and another 1.1 Million for the IT enabled services.
E-Commerce in India Supply of manpower There are 1270 colleges (776 colleges awarding degrees in Engineering and Technology and 494 colleges awarding MCA as on 04.05.2000) in the country with a total intake of 2,05,153(1999-2000). 1032 (81.25%) of them offer IT courses with an intake of 66,214 (32.17%).
Country Issues • Telecommunication Infrastructure • Bandwidth • PC penetration/Internet penetration • Legal Framework • PKI • Electronic delivery of public services • Payment gateways • Education and awareness
Human skills required for EC • Developing Electronic Commerce solutions successfully across the Organisation means building reliable, scalable systems for • security, • E-Commerce payments, • supply-chain management, • sales force, data warehousing, customer relations • integrating all of this with existing back-end operations.
Human skills required for EC It's not just about E-commerce; It's about redefining business models, Reinventing business processes, Changing corporate cultures, and Raising relationships with customers and suppliers to unprecedented levels of intimacy
Human skills required for EC Internet-enabled Electronic Commerce: • Web site development • Web Server technologies • Security • Integration with existing applications and processes
Human skills required for EC Information Technology for Integrated Electronic Commerce: • LAN/WAN infrastructure planning implementation Internet/Intranet Electronic Commerce solutions
Human skills required for EC Security: • Security issues for buying and selling over the Internet and approaches for business
Education and Awareness on EC • Private Institutes • Online education through web • Government Institutes/Colleges • Conferences/Exhibitions
Government Initiatives • Indian Government constituted National Task Force on IT & SD • Institutional setup • EC Council of India • India EDIFACT Committee • Technical Assessment Group • HRD Group constituted
Government Initiatives • Message Development Groups for • Customs • Ports • Airports • Finance • Private sector • EDIFACT standards declared as national standards
Government Initiatives • On going awareness programs • Legal backup to EC/EDI documents • Process re-engineering committees • Sectoral implementation committees • Establishment of Article Numbering & Bar Coding Institution
Government Initiatives • Indian Institute of Foreign Trade(IIFT), Federation of Indian Export Organisation (FIEO), All India Management Association (AIMA), National Informatics Centre (NIC) nominated for creating education and awareness • Courses for various level of management were structured
Government Initiatives • Financial assistance given for setting up Electronic Commerce laboratories • AICTE recommended to include Electronic Commerce as an essential part of every technical and management program
Government Initiatives • Conference and Exhibition on EC is organized on regular basis • Session on EC for CEO’s of top Indian companies is organized during every conference
Government Initiatives • Launch of Auto EC Pilot project • Pilot EC projects for healthcare and other sectors
Government Initiatives • Internet based EC • Web based application • Internetworking of VANs
Government Initiatives Industry leaders in sectors like Pharmaceuticals, Chemicals, Gems & Jewelry, textiles, Trading etc., are encouraged to start pilot EC projects. Ministry of Commerce to provide support for all pilot EC projects.
Government Initiatives All Trade bodies like CII, ASSOCHAM, FICCI etc.., encouraged to start Awareness and Education programs on EC/EDI for their members for which services of AIMA, NIC, IIFT and FIEO could be availed.
Conclusions Education and information on EC has a very vital role to play specially in the developing countries where most of the players are in SME sector. Two main challenges before us are to provide the required numbers and improve quality to raise productivity and moving up the value chain.
Conclusions Governments jointly with private sector need to take adequate measures for the promotion and propagation of EC to make trade and industry competitive in the global trade.