New Delhi, October 15 2011 — If you look compulsively for the good news, it is this: India has become more competitive in information technology compared to other countries , according to the Economist Intelligence Unit's IT Industry Competitiveness Index, 2011 released this week by the Business Software Alliance (BSA) . India  jumped up 10 places since the last such study.
The bad news is, India, a so called IT-enabling leader, is still way down the ranking of 66 countries – at no. 34. Since2007, the Index has been benchmarking countries on a series of indicators covering the critical foundation areas for IT innovation: overall business environment; IT infrastructure, human capital; research and development (R&D); legal environment and public support for industry development.

India climbed 10 spots to 34th in the worldwide rankings on the strength of a strong showing on indicators of human capital and research and development (R&D), among other criteria. .
Topping the overall rankings for 2011 are the United States, Finland, Singapore, Sweden, and the United Kingdom.
This year’s Index finds that economies traditionally strong in IT are maintaining their positions of leadership in part because “advantage begets advantage” — they have built up solid foundations for technology innovation through years of investment, and they are continuing to reap the benefits. But the global field of competition is becoming more crowded as new challengers, especially in developing Asia, raise their game to meet the standards leaders have set.

“This study demonstrates clearly that India’s IT competitiveness will continue to improve through focused steps which foster creativity and innovation within the IT industry,” said Keshav Dhakad, Chair, BSA India Committee.“India’s competitive momentum is hugely encouraging, since unlocking the next phase of industry growth will require a continued focus on creating a favourable business and legal environment, and improved IT infrastructure. To continue its trajectory as a rising IT power, India will increasingly need a safe and secure digital economy that inspires the trust and confidence of government, business and citizens -- especially as markets across Asia become more competitive,” he added.
The biggest movers in this year’s Index compared to the previous edition in 2009 include Malaysia, which vaulted 11 spots in the overall rankings because of a surge in research and development activity, and India, which leapt 10 spots on the strength of its robust research and development and dynamic human capital environment. A number of other countries — including Singapore, Mexico, Austria, Germany and Poland — posted strong overall gains this year by showing new levels of strength across the board in all IT foundation areas.
The Business Software Alliance (www.bsa.org) is the leading global advocate for the software industry. It is an association of nearly 100 world-class companies.
Link to full report: www.bsa.org/globalindex  
Link to country ranking: http://globalindex11.bsa.org/country-table/