China and Ireland that are emerging as important software development destinations may pose threat to India’s dominance of the sector, according to a report by rating agency ICRA. Emergence of China and Ireland as software development destinations, slow pace of growth in the domestic market and protectionism by export destinations like visa restrictions and minimum wage stipulations, which could render on site opportunities unattractive, are the major threats to India’s software reign, the report said. Low presence in global packaged software market, low telephone and PC penetration levels with inferior telecom and physical infrastructure standards are the weaknesses of the India’s growing IT industry. India is a key player in global customised application development segment with 20 per cent market share but this segment represent just five per cent of the IT services market.
