ORGANIZATIONAL CLIMATE IN RELATION TO LEADER BEHAVIOUR OF MANAGERS AND BUSINESS STRATEGY IN I.T. INDUSTRY

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Technological revolutions have paved the way for great economic development and growth of some countries over others. This has been the history from industrial revolution to information technology evolution. India has found an unexpected opportunity in the new revolution caused by information technology, especially in customized software development. India, with its large pool of qualified technical professionals has been recognized as an important base for software development. With a compounded annual growth rate of 28% between 2000 and 2006 the Indian IT software and services sector has expanded almost twice as fast as the US software sector. The world has recognized India's competitive advantage in software services and today India is a magnet for software clients owing to the quality of its skilled software manpower. India has gained a lot of interest as a source of software despite the fact that its software revenue was a tiny fraction of the world software market. The IT industry's contribution to the national GDP has risen from 1.2 per cent during the year 1999-2000 to 4.8 per cent during 2005-06. The Indian software industry consists of a large and growing number of firms. NASSCOM states that although there are 3000 domestic software firms in the country, the top 25 companies account for 60% of the total software exports. Bangalore, Mumbai, Chennai, Hyderabad and Delhi are important locations for firms in the software industry. Entry barriers were low because firms could start with a fairly small initial investment, little more than office space and communication facilities. Software development can be broadly classified as custom developed software and packages or generic software products. Customized software development involves closer interaction between the development team and the end-user. Hence software companies that provide customized software concentrate on particular vertical market segments such as retail, banking and manufacturing. The customized software addresses the specific needs of the clients. The value added is typically greater in the earlier stages of development, namely, requirement analysis and high-level design. For the success of any organization there should be a good organizational climate. A good organizational climate can be developed only through proper leadership and good business strategy. This book details a study on organizational climate in relation to leader behaviour of managers and business strategy in Information Technology industry in Bangalore. It describes marketing strategies, SWOT analysis of Indian software industry and organization climate. Various types of leadership, information and technology driven strategies are covered.The first chapter deals with introduction followed by second chapter on literature review. The third chapter describes the research design. The fourth chapter is on analysis of data and the fifth chapter deals with summary and conclusions. Finally the bibliography and appendices are included.