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Dot.compradors

Dot.compradors

Jyoti Saraswati

(2012)

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Abstract

'India Shining' has become the brand name for a new India presented in Bollywood films, adverts and books. A key part of this image is the software industry, held up as the symbol of prosperity and post-modernity.

Dot.compradors reveals the darker reality behind 'India Shining', providing a history of the industry from the 1970s to the present. Jyoti Saraswati punctures the myth of a free-market industry by revealing the role of state intervention and how vested interests and elite corruption have shaped, and continue to shape, one of the world’s most dynamic sectors.

Saraswati argues that the interests attached to the software industry and the policies they are pursuing are both an impediment to the growth of local software firms and to a broader-based, more egalitarian form of development in India.

'A very important intervention. Saraswati's book fills a very important gap in the existing literature'
Chirashree Das Gupta, Associate Professor, Ambedkar University Delhi
'Provides a more nuanced understanding of the IT sector in India while also placing the evolution of that sector in the broader context of the country's political economy. Original in its scope, well written, and engaging'
Alessandra Mezzadri, Department of Development Studies, School of Oriental and African Studies (SOAS), University of London.
'This important book blasts open the myths about what is seen as the Indian economy's most successful sector'
Jayati Ghosh, Professor of Economics, Jawaharlal Nehru University, New Delhi

Table of Contents

Section Title Page Action Price
Cover Cover
Contents vii
Preface xi
Acknowledgements xiv
A Note on the Terminology xvi
Glossary xviii
A Primer: The Seven Leading Myths about the Indian Software Industry xxiv
1. Introduction 1
1.1 BACKGROUND 1
1.2 AIMS 3
1.3 STRUCTURE 4
Part 1: The Context 7
2. The Global Software Services Industry: An Overview 9
2.1 INTRODUCTION 9
2.2 BENEATH THE TIP OF THE IT ICEBERG: THE SIZE AND STRUCTURE OF THE HIDDEN INDUSTRY 9
2.3 THE MAGNIFICENT SEVEN: INTRODUCING THE GLOBAL GIANTS AND THE INDIAN MAJORS 11
2.4 CREATIVE DESTRUCTION AND THE DEVELOPMENT OF THE INDUSTRY, 1950–85 13
2.5 CONVERGENCE AND CATCH-UP IN THE INDUSTRY, 1985–2010 15
2.6 CONCLUSIONS 17
3. The Development of the Software Industry in India: Existing Explanationsand their Shortcomings 18
3.1 INTRODUCTION 18
3.2 TECHNOLOGICAL ADVANCES 18
3.3 INTELLECTUAL APTITUDE 19
3.4 NEO-LIBERALISM 21
3.5 THE DEVELOPMENTAL DEPARTMENT 23
3.6 CONCLUSIONS 24
4. The Political Economy Approach to State Intervention and Industrial Transformation: An Analytical Framework 27
4.1 INTRODUCTION 27
4.2 THE WHO AND WHY OF POLICY: THE INTERESTS BEHIND STATE INTERVENTION 27
4.3 THE EFFECT OF POLICY: A STRUCTURAL ANALYSIS 30
4.4 CONCLUSIONS 32
Part 2: The Development of the Indian IT Industry 33
5. IT Started with a War: The Establishment of the Indian IT Industry, 1970–78 35
5.1 INTRODUCTION 35
5.2 THE WIDER CONTEXT: THE STATE OF INDEPENDENCE 35
5.3 INTERESTS AND INTERVENTIONS: THE BOMBAY IT PARTY 39
5.4 WHAT HAPPENED? INDIAN COMPUTERS AND SOFTWARE EXPORTS 43
5.5 CONCLUSIONS 47
6. Catalytic Corruption: The Domestic Software Services Boom, 1978–86 49
6.1 INTRODUCTION 49
6.2 THE WIDER CONTEXT: BACK TO BUSINESS – THE EMERGENCY AND THE RETURN OF THE OLD GUARD 49
6.3 INTERESTS AND INTERVENTIONS: ILLUSIONS OF GRANDEUR 51
6.4 WHAT HAPPENED? A POSITIVE CASE OF UNINTENDED CONSEQUENCES 55
6.5 CONCLUSIONS 57
7. Manna from Heaven: Satellites, Optic Fibres and the Export Thrust, 1986–2000 59
7.1 INTRODUCTION 59
7.2 THE WIDER CONTEXT: WHITE GOODS, BROWN SAHIBS –THE RISE OF INDIA’S CONSUMER SOCIETY 59
7.3 INTERESTS AND INTERVENTIONS: THE AMERICAN DREAM 61
7.4 WHAT HAPPENED? THE EMERGENCE OF THE MAJORS 63
7.5 CONCLUSIONS 65
8. Passage to India: The Giants in the Land of the Majors, 2000–10 67
8.1 INTRODUCTION 67
8.2 THE WIDER CONTEXT: AMONGST THE BELIEVERS – THE CAPITALIST CONVERSION OF INDIA 67
8.3 INTERESTS AND INTERVENTIONS: SOFTWARE AS SOFT POWER – THE RISE OF NASSCOM 70
8.4 WHAT HAPPENED? FROM BIG DREAM TO MAJOR NIGHTMARE 72
8.5 CONCLUSIONS 75
Part 3: The Analysis 77
9. The Indian Mutiny: From Potential IT Superpower to Back Office of the World 79
9.1 INTRODUCTION 79
9.2 IN INDIA BUT NOT OF INDIA: THE SOFTWARE INDUSTRY IN 2020 79
9.3 POACHER AS GAMEKEEPER: EXPLAINING THE STATE’S INACTION 82
9.4 NEVER MIND THE BUZZWORDS: A NEW AGENDA 83
9.5 CONCLUSIONS 86
10. Lessons and Warnings: What Does IT Mean? 87
10.1 INTRODUCTION 87
10.2 DON’T BELIEVE THE HYPE: THE ROLE OF IT IN DEVELOPMENT 87
10.3 BEYOND GOOD AND EVIL: THE ROLE OF THE STATE IN DEVELOPMENT 91
10.4 GOLDEN CALF OR TROJAN HORSE? THE ROLE OF THE SOFTWARE INDUSTRY IN THE INDIAN ECONOMY 93
11. Conclusion: Of Compradors and Useful Idiots 95
Notes 99
Appendices 131
Appendix A: The Software Industry in India, by Type of Firm 131
Appendix B: IT Policy Formulation According to the Developmental Department Literature 132
Appendix C: The Internal Power Structure of NASSCOM 133
Appendix D: NASSCOM Executive Council, 2011–13 134
Appendix E: NASSCOM and the Indian State Apparatus, 2010 135
Appendix F: Priority Issues for Firms, NASSCOM and the State 136
Appendix G 137
Index 137