Against the backdrop of the Law Against Unfair Competition in the United States, International Data Corporation (IDC) has unveiled a white paper on the possible risk for India's manufacturing sector due to non-compliance with clean IT practices. According to IDC, use of pirated software by a mid-sized company in India can expose the company to an export loss of $35 million, while the savings expected from using pirated software is less than a fraction of the expected loss, at $0.84 million.
The Law Against Unfair Competition in the United States promotes fair competition and encourages manufacturers to respect property rights in their IT systems. All manufacturers whose products are sold in the United States must achieve full legal compliance of their IT, failing which they risk liability and lost sales opportunities. The law provides a strong incentive for manufacturers to take responsibility for their IT systems and ensure that businesses are able to compete fairly.
IDC's report predicts that a reduction in usage of pirated software in the manufacturing sector by a mere 10% over the next four years will deliver compelling positive outcomes, not just on the manufacturing segment, but also on the IT industry ($700 million in new revenue) and other related industries ($900 million in new revenue). Further, over 15,000 jobs will also be created.
"Software piracy is expected to have a negative impact on the India’s growing manufacturing sector. Both large and small enterprises in this sector will have to ensure IT compliance for continued sectoral growth and positive impact on the economy. The insidious challenge of software piracy in India is drawing global attention and might affect India’s competitive edge," says Jaideep Mehta, Vice-President & General Manager - South Asia, IDC.
IDC's report titled The Dramatic Impact "Unfair Competition" Initiatives in the United States Could Have on Emerging Markets investigates the impact of software piracy in six emerging markets, including India, China, Brazil, Mexico, Thailand and Turkey. The report further notes that up to $790 billion in exports will be jeopardized across the six markets in 2014. Meanwhile, consumers and businesses in these markets are expected to spend nearly $150 billion for network security processing malicious programs caused by software piracy.
