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Software Procurement Policy



Software Procurement Policy
The Digital India foot print is expanding day by day. It has been the consistent focus of Shri Narendra Modi Government, to improve Digital Governance as it is critical for faster delivery and effective monitoring of services.

The transformation happening under the overall Digital India initiative is creating huge opportunities for involvement of industry/private sector, mainly providers of IT/IT enabled systems and services. However, various concerns have been raised from time to time by the industry relating to their engagements (and contracts) with government funded projects. These issues include terms of payments, acceptance criteria, service level agreement and change management etc.

It is the consistent representation of NASSCOM, as also the major System Integrators like TCS, Wipro, Tech Mahindra, IBM etc, for the need of a model RFP to guide all the organizations across governments, so that all variations, vagaries and uncertainties may be avoided. Based on intensive deliberations with the industry and other stakeholders, this model RFP has been formulated.

The major features of Model RFP provides for,
1.      Level playing field, to all stakeholders by defining appropriate pre-qualification and technical evaluation criterion.
2.      Aligning legal terms and conditions with the requirements of the IT Industry
·         Template for scope of work and service level agreements
·         Change request mechanisms
·         Dispute resolution
·         Standard contractual terms & conditions
·         Standardization of Intellectual property rights
·         Capping the liability, penalty and liquidated damages
3.      Making payment terms, objective and easier, for industry and Government Department
·         Guidance on simplifying payment related conditions
·         Incorporating the Exchange rate variations
4.      Converging Government schemes like Make in India / Preference for Domestically Manufactured Electronic Goods (PMA), provisions for Start-ups and MSMEs
5.      Leveraging latest technologies like cloud, mobiles, etc.
6.      Aligned with the General Financial Rule 2017
7.      Adherence to the latest standards\

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Digital India Corporation
Digital India Corporation (DIC) will lead and guide in realizing the vision, objectives and goals of the Digital India program. It will provide the strategic support to Ministries/Departments of Centre/States for carrying forward the mission of Digital India by way of Capacity Building for e-Governance projects, promoting best practises, encouraging Public-Private Partnerships (PPP), nurturing innovation and technology in various domains. To ensure autonomy and viability of the organisation in the long run, the DIC, will also collaborate and mobilise partnerships with the industry, to evolve revenue based models for service delivery.      

To undertake these functions, Digital India Corporation will attract talent and resources both from government and market. The judicious mix of talent will ensure that government is equipped with a broad spectrum of resources for successful design of Digital India related projects.

Digital India Corporation shall have the following broad responsibilities:

1.      To provide leadership and support to Government of India through MeitY, to steer and anchor Digital India and all related policy and implementation initiatives. To promote digital transactions including digital payments through various medium. 

2.      To support MeitY in all its initiatives with policy and implementation related issues concerning various ongoing programmes & schemes in ICT domain and new initiatives necessitated as part of the Digital India vision.

3.      To support Ministries/Departments, both at Centre as well as at States and other stakeholders in crafting progressive e-Governance strategies, to promote Accountability, Efficiency, Efficacy and Transparency.

4.      To source and make available from both the market as well as within government, pool of specialized technically skilled manpower for hardware, software, networks, cyber security and laws, standards, quality and testing etc. in ICT domain to Ministries/Deptts. on charge basis under the Central and State Government. 

5.      To promote innovation and evolve models for empowerment of citizens through Digital initiatives and to promote participatory governance and citizen engagement across the government through various platforms including social media.

6.      To establish the National e-Governance Academy and to put in place an institutional mechanism for capacity building of government and its agencies, including assessment and evolution of suitable training packages/modules for capacity building for the Centre and States for Human Capital formation to enhance competitiveness for successful implementation of various projects/schemes in ICT domain to cut on cost and time over run.

The Board of Media Lab Asia under the chairmanship of Sh. Ravi Shankar Prasad, Hon’ble Minister of Electronics & IT and Law & Justice, has approved on 16th May 2017 the proposal for fully realigning the purpose and objectives in line with Digital India vision. The approval of the Board ensures that the Digital India Corporation with a complete restructuring of its administrative components, will play the role of a leader in e-Governance space and take forward the projects and activities of Digital India and facilitate all stakeholders to realise its goals.

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Employment prospects in India’s IT Sector: Robust Outlook
It is asserted that the employment potential and prospects in the IT and related sectors are robust and promising. Some of the reports to the contrary in the media space are highly exaggerated and unfounded.

Indian IT sector employment prospects, both in the near and long-term are expected to be broadly positive and encouraging for the future. India IT companies currently serve two thirds of the fortune 500 companies and have created 40 lakhs direct jobs in India

To present an objective and realistic potential of the employment scenario, the Ministry apart from its own feedback, has taken note of projections by NASSCOM, the principal Industry body, as well as of other well-known independent organizations and consultants working in this field.

NASSCOM has confirmed that the industry continues to be a net hirer and reports that:
•    2.5-3 million new jobs will be created by 2025.
•    In FY 2017, the industry added 1,70,000 new jobs. NASSCOM has already publicly contradicted reports of large scale layoff
•    IT industry added 600,000 in last three years and today, boasts of a total employee base of 3.9 million.

TeamLease analysis for 2017-18 reports that IT sector hiring sentiments is positive and is up by 4% in October 2016 to March 2017, compared to the previous six-month period.

The TeamLease analyses also indicates that e-commerce and technology startup sector hiring sentiments has increased by 2%, with projected 14.94% job growth. (This is despite recent challenges in these sectors.)

Recruitment and staffing firm Randstad projects (in December 2016), a cumulative growth rate of 9% in the IT / ITeS job market.

The Indian technology startup sector will offer strong and growing employment prospects to Indian IT professionals. According to NASSCOM, in 2016, Indian technology startups employed 95,000 to 100,000 IT professionals, across more than 4,750 startups (including ecommerce and hyperlocals).

India’s domestic IT market offers strong prospects for industry growth (consequently employment), even if global markets were to face challenges.

•    India’s total software product market grew at 9.5% in FY2017 to reach USD 7 billion. (Exports grew 7.8% to reach USD 2.3 billion.) In comparison, the domestic market grew much faster, at 10.4%, reaching USD 4.8 billion.
•    India’s overall domestic IT/BPM sector is expected to grow at 8.5% from USD 35 billion in 2016 to an anticipated USD 37 billion in 2017.

Other shining sectors of employment in the overall of IT Industry under Digital India, include, the following:
•    CSC has generated 10lakhs local level employment by way of village level entrepreneurs.
•    Total employment in IT/ITES Industry employees is 4 millions as direct employment and 1.3 Crores as indirect employment.
•    State-owned Software Technology Park of India (STPI) has generated 50% of the employment generated by the Indian IT/ITES industry. It is to be noted that out of 56 STPI centres, 48 are located in tier-ii and tier-iii location, benefitting the qualified youth of such locations.
•    To further promote the job creation, MeitY has come up with India BPO promotion scheme with an aim to provide employment to 1.45 lakh persons, mostly in the small towns. More than 48 thousand BPO seats in 2017-18 year. It is a matter of assurance that BPO through tendering has been finalized and is in its process of being set up in towns like Imphal, Guwahati, Siliguri, Patna, Muzaffarpur, Samastipur, Gazipur, Unnao, Amravati etc
•    To encourage Northeastern part of India, MeitY has a separate Northeast BPO promotion scheme with 5000 seats and having employment potential of 15000 persons. This would go a long way to help the employment scene in northeast region of India.
•    In Mobile phone manufacturing, 72 new mobile manufacturing units started only in last 30 months. It has created 1 lakh direct and 3 lakh indirect jobs in India. All major brands like Apple, Samsung etc. in the ICT sector are manufacturing or ready to manufacture in India.

The emerging and promising digital economy in the country is going create a very powerful potential for job creations.

The Govt is encouraging greater stress on cyber security and this will lead to greater focus on innovation, research and thus significant potential for job creation.

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