India's position in the global software service sector is very strong with Israel and Ireland, the only two countries who can give India a run for its money, still struggling to gather a critical mass, says professional services firm PricewaterhouseCoopers.
"Israel and Ireland, the two countries which can threat India's position in the global software services market, are yet to gather a critical mass in this area," said Rajarshi Sengupta, partner (technology practice), PwC in New Delhi on Wednesday adding: "This is working in favor of India."
According to Sengupta, China, which is projected to cause a major threat to India's position in the global software services and IT enabled services area, are far behind due to its lack of capability in English.
"The biggest advantage that India has over China is the language. In areas like embedded software and hardware, where language is not an issue China will pose a threat to India," Sengupta said.
On markets like Philippines, he said, "These markets are yet to reach the level of sophistication that the Indian companies are at present."
He said that software is getting more importance in the schemes of companies and is becoming a major business driver for many companies.
"Our clients are finding that IT no longer is merely a set of back office support systems, it has become and important source of competitive advantage," Sengupta said.
PwC also feels that although the era of dot com is over, the key lessons from that era is helping companies to gain competitive edge.
"Traditional brick and mortar companies are using Internet to gain competitive advantage. They use Internet to increase efficiency," he said.
"Many corporations across the globe are deploying Internet technologies to gain advantage over its competition. Companies will have adopt Internet to survive. Dotcoms failed as they did not have strong business models, but the companies with strong business models can use net to become leaders," Sengupta said.According to PwC, "Many visions of the expanding role that computer technology will play in every aspect of life during the next decade assume there will be major breakthroughs in our ability to design, build and manage intelligent software agents."