Drop in piracy to nearly triple Indian IT sector

A 10-point reduction
in the current 74% software piracy rate in India would have a tremendous impact
on the domestic front, enabling the IT sector (excluding software and services
exports) to grow from $7.4 billion to $19.5 billion, according to a BSA-IDC
study.

“India, which is
projected to see the second fastest IT growth in the global survey — could
also nearly triple the size of its IT sector by 2009. A reduction in the
software piracy by 10-points over four years can have a significant impact on
India's economy. On top of an already impressive growth rate, it will add
115,000 jobs, contribute $5.9 billion to GDP, add $386 million in taxes and $8.2
billion in revenues to local vendors,” said Jeffrey Hardee, vice president and
regional director, Asia, BSA.

The study found that
the global IT sector, currently projected to grow by 33 percent between 2004 and
2009, could instead grow by 45 percent over the same period with a 10-point
reduction in software piracy.

The study also
concluded that four out of five countries would see greater than 30 percent IT
sector growth with a piracy reduction.

Countries with the
highest piracy rates stand to gain the most through piracy reductions. Vietnam,
China and Indonesia — countries with the highest piracy rates in Asia Pacific
— would be the largest beneficiaries of piracy reductions.

China could potentially
gain more than any other country in the world, tripling its already large IT
sector.

With a 10-point piracy reduction, China could create 2.6
million new IT jobs in four years — as many IT jobs as the United States has
created in 30 years.

DQC NEWS BUREAU