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The Internet of Things: The Indian Case. Sean Peters & John Sablan. Introduction. China v. India: Economic Development. In order to better understand the economic development of India, it is worthwhile to compare it to its regional neighbor, China.
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The Internet of Things: The Indian Case Sean Peters & John Sablan
China v. India: Economic Development • In order to better understand the economic development of India, it is worthwhile to compare it to its regional neighbor, China. • Both nations have over 1 billion citizens making up 2/7 of the world population. • They boast two of the fastest growing economies in the world. • The Chinese economy is growing at an average rate of 10 % per year. • The Indian economy is expanding at an average of 7.5 % per year.
China v. India: Economic Development • China began its economic reforms in 1979 under Den Xia Peng. • The economic liberalization under the leadership of NarasihmaRao started in 1991. • As a result overall investment increased from $ 132 million in FY 1991 to $ 5.3 million in FY 1995. • I = C – 12
China v. India: Economic Development • China wasted no time in taking control of its financial development and has established a comparative advantage in manufacturing. • Manufacturing makes up 47% of the Chinese economy while India only devotes 28% of its business to this industry. • The reason behind this stark difference lies in: • The infrastructural investment by the Chinese government • The ease of policy implementation • Overall experience in delivering manufactured goods.
India’s IT Industry • The IT sector has played a crucial role in India’s economic development. • It is projected that by the year 2020, this sector will become a $225 billion dollar industry. • Due to their competency in the area, it has become the preferred destination for companies to outsource their IT and back-office functions. • As a result, firms like TCS, Infosys and Wipro are developing ways to capture a greater market share.
India’s IT Industry • The Information Technology segment has been one of the largest employers of the country. • An estimated 30 million professionals are employed by these SME’s in the various technological hubs.
Infrastructural Issues • Despite the potential for continued growth, India’s lack of a modern infrastructure to support its economy has hampered its growth. • Standard and Poor’s rating services estimate that, unhampered, the country will experience an economic growth rate of 9-9.5%.
Infrastructural Issues • India’s “Silicon Valley” has no mass transit available to transport its workforce. • Infosys shells out $5 million a year to bring its 18,000 employees to and from work. • “India has underinvested in infrastructure for over years, and we’re behind what we need by 10 to 12 years” – Mohandas Pai, Director of Human Resources.
Infrastructural Issues • The lack of power has presented itself as a roadblock in the IT sectors path. • In many cities, IT companies lose power once a week to relieve pressure on the grid. • Time and valuable funds have been redirected to combat these issues.
Infrastructural Issues • In order to combat the problems with the Indian infrastructure, the government has planned to develop over $1 trillion to bolster the transportation and power generation. • The government has also handed off many of its responsibilities to private firms for a more efficient development of the infrastructure. • Bangalore’s Bengaluru International Airport.
India and Innovation • The need for Change… • “700-800 million square feet of office space will be constructed…” • Potential for continued economic growth • Innovation in IT Infrastructure • Cisco Connected Real Estate Solutions
Cisco Connected Real Estate • Redefining the word “Smart” • Integration of information, building, and physical security • Cisco IP Network • “Network as the Foundation” • Services • Centralization of services lead to streamlining and cost reduction.
Indian Economical Impact • IT service industry plays a key role in India’s economic growth, accounting for 56% of GDP • Efficiently built infrastructure and work environment will lead to economic growth from cost reduction and greater productivity
Closing Thoughts • India’s unique political, and economical decisions have led it to adopt the role of the world’s leading IT-Service provider. • Cutting-edge technologies like Cisco’s Connected Real Estate, demonstrate the countries competency in providing IT services to the rest of the world. • The Prosperity of India’s economy is heavily dependent on its ability to address its pressing issues.
Closing Thoughts • India’s unique political, and economical decisions have led it to adopt the role of the world’s leading IT-Service provider. • It is clear that India has taken quite a unique route its economic advancement relative to its neighbors. • The Information Technologies industry has provided India with the catalyst to become a major player in the global market. • The Prosperity of India’s economy is heavily dependent on its ability to address its pressing issues.
Closing Thoughts • Cutting-edge technologies like Cisco’s Connected Real Estate, demonstrate the countries competency in providing IT services to the rest of the world.
Work Sited • Cisco Picture: http://www.google.com/imgres?num=10&um=1&hl=en&safe=off&biw=1821&bih=857&tbm=isch&tbnid=eA5OXUu3KalVTM:&imgrefurl=http://www.urenio.org/2009/03/13/cisco-intelligent-urbanisation/&docid=oyxpfi2y9TcT1M&imgurl=http://www.urenio.org/wp-content/uploads/2009/03/cisco-intel-urb.jpg&w=729&h=484&ei=leaQT-7vJ4Tg2QXTyKD4BA&zoom=1&iact=hc&vpx=1028&vpy=141&dur=5388&hovh=182&hovw=276&tx=124&ty=104&sig=104090996008112064563&sqi=2&page=1&tbnh=116&tbnw=162&start=0&ndsp=45&ved=1t:429,r:5,s:0,i:78