Market Overview

Textile and Apparel industry has a great contribution to the Turkish economy. The industry has been denominated as the locomotive of the Turkish Economy for years. Turkey’s textile and apparel exports continued rising recently after began falling in January, with elimination of EU and US quotas.

The industrialisation efforts of the 60’s and 70’s gave birth to the modern textile industry in Turkey. At the beginning, this sector was operating as small workshops. But the sector showed rapid development and during the 1970’s began exporting. Today, Turkey is one of the important textile and clothing producers and exporters in the world.

Turkey’s textile and clothing manufacturers began relocating production in Eastern Europe and Central Asia. In the last three years, Turkish textile and apparel companies faced raising difficulties, after having substantially succeeded in the eighties and the first part of the nineties.

Chinese textile exports after a decades-old quota system limits ends on January 1, 2005 and the World Trade Organization believes that within three years the Asian giant could be producing over half of the world s textiles, up from 17% in 2003.

The end of the quota regime has spawned fears of widespread job losses around the world, including in Turkey, whose own textiles and apparel exports stand at around $20 billion a year.

Thus, it is necessary to understand the Turkish textile and apparel sector, the weakness and the strength it has in the World market.

Current scenario of Textiles and Apparels in Turkey

The textile and apparel sector has been the backbone of the Turkish economy with a vital role to play in the industrialisation process and market orientation of the economy in the last two decades. In the 1980s, it was the leading sector related to the global economy and the export revenues of this hard currency earning sector contributed substantially to the overall economy. The textile sector continued to be one of the major contributors to the Turkish economy, being one of the fastest growing sectors in the 1990s with an average 12.2% annual growth, while the Turkish economy had an average growth of 5.2% per year. Total investment in the sector exceeded US$ 150 billion, of which more than US$ 50 billion was invested in the last 5-10 years.

Textile industry started out in the 1960s in small workshops, have rapidly developed and transformed Turkey into a global competitor.

The total number of firms in the sector, dominated (95%) by the private sector, number around 44,000 and 25% of them are active exporters. The apparel industry is constituted mainly (80%) of small and medium sized firms whereas the technology-intensive textile production has been undertaken by large-scale companies. Today, around 20% of Turkey’s 500 largest companies are involved in the textiles and apparel sector.

Low labor costs, a qualified workforce, relatively cheap raw materials have played an important role in the significant growth of the sector; as well as a liberalized economic environment and export-led policies in the last two decades.

The production value of the sector is over US$ 20 billion. Employment in the sector is estimated to be about 4 million people (2.5 million employed directly and a further 1.5 million indirectly through the sub-sectors). Official statistics also reveals that around 500,000 employees in the sector due to unregistered labor force.

The apparel sector exports approximately 60% of its production. Capacity utilization rates are approximately 75% especially among exporting manufacturers.

Turkey ranks also among the top ten global producers of wool cloth, carpets, synthetic filament and fiber, polyester and polyamide filament. While Europe’s 3rd largest polyester producer is a Turkish-US joint venture, Turkey’s synthetics production mounts to 15% of Western Europe’s capacity.

Economic Contribution

Textile and clothing industry has a great contribution to the Turkish economy. For example, textile and clothing industry accounts for:

. 10% in GNP

. 40 % in industrial production

. 30% manufacturing labor force

. 35% of exports earning

The textile and apparel sector contributes over 20 billion USD to the Gross National Product. The sector is mostly important for its export earnings; its share in the country’s total exports has been between 33-39% since 1990.

The major export market for Turkish textile and apparel goods is the EU countries, which account for about 65% of total textile and apparel exports. Turkey ranks 2nd in apparel and textile imports to the EU having an 8.2% and 4.8% share in the EU’s total textile and apparel imports respectively as of 2003.

Export scenario

Textile and apparel exports increased by 14.6% on average per year during 1980-2003. Especially until the second half of 1990s, the sector’s exports increased at a rate above the increase in total exports of Turkey as well as the increase in global textile and apparel exports. In 2003, the sector’s exports totaled US$ 15.1 billion, having a share of 32.6% of the total exports. Exports rose to 23% in 2003, terms of value to 2002. The increasing share of apparels in exports since 1986 signifies the efforts to produce more value added products.

After the EU, the USA is a big and impending market. Turkey is the 19th apparel supplier and ninth textile supplier of USA with a 1.9% and 2.9% share respectively. Beside the EU and the US market, new markets are North African countries namely, Tunisia, Egypt and Algeria; Middle East countries namely Syria, Israel and Saudi Arabia; Eastern European countries namely Romania, Bulgaria, Poland and Hungary; and CIS countries. The sector faces quotas only in the USA and Canada. The Russian Federation was also a big market for the Turkish textile and apparel sector till the financial crisis of August 1998. It was the 3rd biggest market for apparel and 9th for textile products in 1997. Russia is still a promising market for textile and apparel sectors with its high consumption potential that will come out in the following years especially after developments towards better integration to the world economy and WTO membership prospects.

Cotton market

Turkey is a very important cotton country, which is an advantage in raw materials, for the clothing industry. Turkey is a traditional cotton producer and uses this advantage in the textile and apparel sector. Turkey ranks 1st in Europe and 6th in the world cotton production with an average production of 800,000-900,000 tons per

year. Moreover, with the completion of irrigation projects within Southeastern Anatolian Project (GAP), Turkey’s most comprehensive development program, current cotton production is expected to double by the year 2005.

During 2003-04 season Turkey produced 893,000 tons of cotton. About 30% of the cotton production is high quality long staple cotton and the rest is of medium quality. The cotton industry provides a competitive edge to the textiles industry, which utilizes cotton as its essential raw material.

Cotton Market Trends

Main destinations for cotton yarn exports are Italy, Portugal, Greece and Belgium and for cotton fabric the UK, Italy, USA and Belgium. Whilst Turkey used to be a net exporter of cotton, the trade balance reversed in 1992 and since then Turkey has been a net importer of cotton since domestic demand has persistently exceeded available stocks. Beside cotton, Turkey has a strong standing in synthetic fiber, wool and mohair productions. Turkey ranks ninth in synthetic fiber, eighth in wool and third in mohair production in the world.

Home Textile Industry

Besides the Turkish textile industry Turkish home textile industry has also shown a growth in terms of production and exports. In recent years the production of home textiles has shown a stable increase due to the rise in domestic and external demand for home textiles. Turkish home textile industry has recorded growth in terms of production and exports in recent years. Almost all kinds of home textiles are produced in Turkey. These may be listed as follows in order of their export values: bed linens, bedspreads, table linens, towels, bathrobes, voiles, curtains, lace, interior blinds, curtain or bed valances, blankets, cushions, pillows, quilts, eiderdowns.

In home textile sector, besides large scale firms there are many small and medium sized firms scattered all around the country. As a division of the textile industry, the home textiles sector accounts for 3.2% share in Turkey’s total exports and have been an important sub-sector for the Turkish economy. European countries are the most important markets for Turkey s home textile exports. At present Germany, the UK, France, the USA, Netherlands and Russian Federation are the major markets for Turkey s home textile exports. New markets such as Poland, Hungary, Romania and CIS countries are gaining more and more importance.

Foreign Investments in the Sector

The products of the Turkish textile and apparel sector have a good reputation in foreign markets as a result of the availability of high quality cotton in Turkey, wide usage of CAD (Computer Aided Design) and CAM (Computer Aided Manufacturing) and the increase in the number of qualified personnel.

Conclusion

The sector is aware of the trend in international markets towards increasing demand for healthier and more environmentally friendly products and tries to adapt itself to these developments by legal and technical regulations.

Nevertheless, it is hard to keep its competitive position in the world market full of emerging players. Thus, manufacturers have shifted their operations to value-added products and creation of brand names. Currently, 30% of Turkish manufacturers have their own designs and brands in international markets.

As current studies reveal, developed countries will have a decreasing share in global textile production while the developing countries will increase their manufacturing capacity to meet the increasing demands. It is also estimated that by 2005, the developing countries will increase their self-sufficiency in textile production. The US with an estimate of 200% increase in textile consumption is also estimated to have a 32% decrease in self-sufficiency by the year 2005.

Turkey, with its adaptability to European standards and regulations related to environment, health, quality, and safety is aiming to move into the production of more and more value added products, into an era in which the Turkish textile industry will be known for its quality trademarks and will be pricing a product for the Made in Turkey sign.

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New Apple iPhone 5 features and pricing will surprise all of us. Although it is yet to be released and there is no official information about any specific release date yet, but there is definitely a lot of speculation around it. As per the information, iPhone 5 is scheduled to be released in the summer of 2011, coinciding with Apple’s traditional June-July and would release of new iPhone models. As far as I’m concerned, January 2011 also seems to be a nice release date. This can also help Apple correct the antenna problem evident in the current iPhone 4. They can also introduce another version 4 with the rectification rather than waiting for fifth installment.

There are reports that iPhone 5 will definitely have an improved operating system, (iOS 5), which will have the ability to access 4G networks. It will also boast of extremely fast processor (1.5 GHz), improved battery life which will have up to 14 hours of talk time on 3G and 7 hours on AG. The fifth-generation model will also have additional carriers apart from AT&T. Verizon is most likely to be another career. Video chat on 3G and 4G networks will also be a reality, which is currently usable only on WiFi. The groundbreaking face recognition technology and high video resolution ability will also be packed with newer features. And to top it all, a powerful 8 megapixel camera is supposed integrated with iPhone 5. The new phone may also have radiofrequency identification as well. Imagine this, with the feature, you can use the iPhone just like use your credit card. If this happens, you can forget about waiting in the queue at the checkout forever. You can simply pay for your items wirelessly by waving your iPhone over the panel. This is the new patented technology that is going to be introduced by Apple. The patent depicts how a powerful RFID loop can be built into the circuitry of the iPhone or iPod touch screen.

And that’s not all, the next iPhone memory is going to be a gigantic 64 GB. It would also include more storage as against the current capacity of a iPhone 4 which only has 16 GB and set it to GB of memory.

If you thought iPhone for is really sleek and thinner than 3gs, iPhone 5 will surprise you more. It is going to be even thinner than the current one and will have a shiny glass back piece. The screen will be completely scratch and shatterproof. The mobile phone users will be able to assign different tones to different e-mail accounts. True GPS will be built-in too.

Don’t fret, here’s the good news. The price for the iPhone 5 will be very similar to the current price of iPhone 4.

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Abstract

India has the world’s second largest population and one of the fastest growing economies in the world. India has a promising future, given the unprecedented growth in economy and its clout in the global issues. India is now riding on the wave of a gigantic boom in computer driven new economy. Many developed countries of the world are seeking the huge pool of English speaking talented software professionals in India. As the world is transforming towards knowledge society, India too is moving proportionately competing with the world. With the increase of Internet users and the advancement of information and communication technology in India had boasted the development towards e-commerce in global economic society. In IT sector India is booming as a super power. In the last few years India has made rapid strides in the IT sector especially in the software services and IT enabled services. In this paper we analyses the picture of IT industry in a very near future in India & contribution of India in world’s Information Technology Sector.

Introduction

From the 1950s, IBM had a virtual monopoly of computers in India. The 360 series release in 1960s was the major workhouse of the large organizations. They even maintained a chain of programmers who could write down software’s for their machines. However in 1978, when George Fernandes, ministry of industries at that time, commanded IBM to take local shareholders into its subsidiary, the company refused strictly and went back after winding up its all operations in India. Its ex-employees then set up Computer Maintenance Corporation, with the primary object of maintaining IBM computers.

During the period of 1995-2000, the Indian IT Industry has recorded a C.A.G.R. (Compounded Annual Growth Rate) of more than 42.4 percent, which is almost double the growth rate of IT industries in many of the developed countries. For Details contact AMCHAM National Secretariat, New Delhi Foreign companies particularly American companies have played a vital role in making India an emerging IT super power in the world. These MNCs account for nearly 22 per cent of Indian software exports. According to the latest NASSCOM estimates, in 2001-02, multinational infotech companies exported software worth Rs. 6500 crore from India. Country’s total software export was pegged at Rs. 29400 crore. In terms of investment and growth, U.S. companies like Cognizant Technologies (largest export revenue earning MNC) IBM, Oracle, GE, Cisco, Compaq, Intel amongst others lead the MNCs in the Information Technology sector. Nine out of top 20 Indian IT firms are from United States. These account for over 37% of the turnover of the top 20 firms operating in India. Despite their significant contribution to the IT sector, these companies have to face a number of procedural and operational problems in India.

However, the volume of e-commerce, in India, is far below the levels achieved in USA, which was about 1 percent of the total GDP in 1999. Further, the expected volume of e-commerce in India in 2001 (US$ 255.3 million) is also below the levels expected to be achieved, which in comparison to Australia (US$ 3 billion), China (US$ 586 million), South Korea (US$ 876 million) and Hong Kong (US$685 million) is quite less.

Time has changed the way businesses are carried out. What was supposed to be known to few and limited to the home towns, appears to be an ancient methodology of carrying out the work. The present day brands work on world wide scale, that is they are successful in not just one particular region but have deepened their roots to all the corners in the globe that you can think of.

Information Technology is what constitutes the most important sector in the present day trend of carrying out business. It is because you can not be present everywhere to monitor the work, but with networking and communications, you can always stay in contact with the other business sites of yours.

ICT Approaches of India

A spate of reforms-post-1991 economic crisis-have given impetus to the Indian economy, particularly to the ICT sector. As part of the reform agenda, the Indian Government has taken major steps to promote ICT including the creation in 1988 of a World Market Policy, with a focus on software development for export; telecommunications policy reform; privatization of the national long-distance and mobile phone markets; and development of a more comprehensive approach to ICT. Although India’s success is commanding increasing attention and investment, it has yet to result in the distribution of social and economic benefits across a broader base of the population. Challenges-including the perception of an unfavorable regulatory climate, an overloaded judicial system, poor infrastructure and costly access, and limited use of ICT-remain. The emerging shift in government strategy, toward knowledge-intensive services, has created a climate more conducive to addressing enterprise, domestic infrastructure, education and the use of ICT to meet development needs.

Policy: India’s focus on self-reliant industrialization in the 1970s and 1980s has been replaced with reforms aimed at positioning India in the world economy: the foreign direct investment process has been streamlined, new sectors have been opened up to foreign direct investment and ownership, and the government has exempted the ICT industry from corporate income tax for five years. These reforms have helped India to become increasingly integrated into the global economy through growth in the export of software and skill-intensive software services, such as call-centers.

In 1986, the Indian government announced a new software policy designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. As a result, the Indian software industry grew from a mere US$150 million in 1991-1992 to a staggering US$5.7 billion (including over US$4 billion worth of software exports) in 1999-2000-representing an annual growth rate of over 50 percent.

The establishment of the Telecommunications Regulatory Authority of India (TRAI) was a key step towards effective implementation of telecommunications reforms. In 1992, the mobile phone market was opened up to private operators, in 1994 the fixed services market followed, and finally in 1999, national long distance operations were opened to private competition. Prior to these reforms, the Department of Telecommunications had been the sole provider of telecommunications services.

In addition, to attract foreign direct investment, the government permitted foreign equity of up to 100 percent and duty free import on all inputs. Government-created technology parks also offered professional labor services to clients, a cost-effective program for India since ICT labour is so inexpensive by global standards.

Infrastructure: Teledensity in India has reached 3.5 percent of the population. Approximately 1 percent of households have fixed line connections, compared to 10 percent in China. The mobile sector has approximately 3 million users, growing at 100 percent per annum, and is expected to outstrip the fixed line market in the near future. The number of Internet accounts is around 1.5 million, growing at 50 percent per annum. India also has very high penetration rates of terrestrial TV, cable and radio. Voice and data wireless solutions, for both domestic and export markets, are increasingly produced and used locally.

Access to telephones in Indian villages has improved in the last five to six years through the introduction of the Public Call Office (PCO) run by local shopkeepers. More than 60 percent of the villages in India have at least one phone. This also includes over 800,000 Village Public Telephones (VPTs). Worldtel is undertaking a pilot in four states to secure financing to upgrade the Village Public Telephones so they will soon be Internet-accessible.

In some urban locations, India’s Software Technology Parks (STPs) provide infrastructure, buildings, electricity, telecommunications facilities and high-speed satellite links to facilitate export processing of software.

India also has a number of progressive computerized networks in place, including a stock exchange, the Indian Railways Passenger Reservation System, and the National Informatics Centre Network (NICNET), which connects government agencies at the central, state and district levels.

Enterprise: India’s well-established framework for protecting intellectual property rights has been an important inducement to business investment: well-known international trademarks have been protected by Indian laws, even when they were not registered in India. In 1999, major legislation was passed to protect intellectual property rights in harmony with international practices and in compliance with India’s obligations under TRIPS.

Much of the initial domestic demand stimulus for ICT and ICT services industries in India has come from government: 28 percent of total IT spending to date can be attributed to government and public sector expenditure. Major areas of government expenditure include: financial services, taxation, customs, telecommunications, education, defense and public infrastructure. As a result of the growth in ICT use in India, the ICT industry itself has also increased its domestic economic activity, for example, a number of ICT companies have developed accounting and word processing packages in Indian languages. The potential impact of this growth on the domestic economy is much broader than developing software for export only.

Human Capacity: In spite of relatively low literacy rates among the general population, India has several key advantages in human capital: a large English-speaking population and world-class education, research and management institutions-a direct result of investment in self-reliance in science and technology. In addition to establishing Indian Institutes of Technology in various cities around India to create a large pool of technical skills, the government has a computer policy to encourage R&D in personal computers. The IT training sector continues to grow at a rapid rate: total training revenues in 1998 were estimated at US$225 million, 30 percent up on the previous year. However, one of the biggest challenges to the Indian software industry remains the difficulty in attracting and retaining talented professionals.

Content and Applications: India has a large population with great linguistic diversity. Creating and maintaining locally relevant content for a country with 418 languages is a challenge. Nevertheless, local language content is slowly making ICT more relevant and accessible to a broader cross-section of the population. For example, India’s Center for Development of Advanced Computing has recently launched a scheme called iLEAP-ISP to create a free multilingual word processor to be made available to all Internet subscribers. On other fronts, some states such as Tamil Nadu have launched their own initiatives to support the standardization of local language software through interface programs that can be adapted to word processors, dictionaries, and commercial keyboards for use in schools, colleges, government offices and homes.

An emphasis has also been placed on the development of relevant e-government applications in India. Some states such as Madhya Pradesh and Andhra Pradesh have started to introduce applications which allow citizens to have faster and more transparent access to government services-for example, the provision of information on laws and regulations, and the procuring of licenses and official documents online.

Strategic Compact: Public-private partnerships, catalyzed by the IT Ministry, have played a key role in India’s ICT-related development. One of the positive results of this effort has been the IT Act of 2000, which was based on the recommendation of the National IT Task Force, and aims to set the overall strategy for the IT sector. In addition, the government and the private sector are starting to come together to foster ICT development. For example, a joint effort by the Computer Science Automation Department at the Indian Institute of Science and a Bangalore-based private company have developed Simputer-a cheap micro-computer that enables illiterate users to browse the Internet.

India’s development and contribution in world’s information technology sector is of highest reputation. Cities like Bangalore have become the favorite(most preferred) destinations of all the big banners like HSBC, Dell, Microsoft, GE, Hewlett Packard, and several Indian multi national firms like Infosys Technologies, Wipro, and Microland who have set up their offices in the city. It is because the city offers good infrastructure, with large floor space and great telecom facilities. This can be judged on the basis of the high growth statistics of India and the changing outlook of the companies towards India .

It is because of this growth many popular brands that have not yet build up there rigid offices in the country are making it fast to have a destination in India too. For example, Sun Microsystems, a global IT major, announced in Bangalore to double the present workforce of the company’s Sun India Engineering Center (IEC) from the present 1000 to 2000 in the next two years time. IEC, which is the largest R&D center for Sun outside the US , would also focus on developing products in India to suit the needs of the Indian market, which would be benchmarked globally.

This speedy growth of IT Sector is undoubtedly due to the efforts of Indian government and the other developments that took in the other parts of the globe.

The country has seen an era when after the IBM shutted its shop in India in 1950, the mainframes that were imported into the country were all from Russia . Western computer could not be imported because of an American embargo on export of high-technology equipment to India , which was considered an ally of the Soviet Union .

Slowly, with the time the country could develop its first powerful parallel computer in 1991 known as CDAC, by connecting together a string of less powerful computers.

With time and the continuous growth across the world, the country continued struggling and came up as the world leader in Information Technology Sector.

The industry has grown up to US $ 5.7 billion (including over $4 billion worth of software exports) in 1999-2000, with the annual growth rate not sliding below 50 percent since 1991.

It exports software and services to nearly 95 countries around the world. The share of North America ( U.S. & Canada ) in India ’s software exports is about 61 per cent.

The Indian labor is not only cheap but is technically skilled too to the world class level. It is due to the Indian Education System that includes in its course curriculum the practical knowledge of the latest technology that is developed in world along with the fluency in English Language that imparts compatibility in an Indian technician to communicate and work through out the world.

Further the geographical location of India serves it the advantage of being exactly halfway round the world from the US west coast, which is another reason why India is preferred destination of many big brands.

Also, The presence of a large number of Indians, especially engineers, in the US gave India an easy entry into the US software market.

What adds more to the dominance of India in Information Technology Sector is the government policies like the enactment of cyber laws to protect and safeguard the interest of software companies in India .

Setting up of the Software Technology Parks of India (STPI), by the Ministry of Information Technology, Government of India and the International Technology Park in a joint project by the State Government, the TATA Group and the Singapore Consortium to promote and facilitate the software exports is another major step towards the growth of Indian Information Technology Sector.

Similarly an industrial park, known as Electronic City , was set up in 1991 takes more than a hundred electronic industries including Motorola, Infosys, Siemens, ITI, and Wipro, in an area of around 330 acres.

The Export Promotion Industrial Park , built near International Technology Park , gives an exclusive 288 acres of area for export oriented business. GE has its India Technology Center located at this park and employs hundreds of multi disciplinary technology development activities.

The other promotional activities that brought up India to this position include the IT Corridor project. Conceptualized by Singapore ’s Jurong Town Corporation Private Ltd, the IT corridor Project was initiated by the Department of IT and the Bangalore Development Authority in order to develop state of the art facilities for the development of knowledge based industries.

Thought’s of some World’s IT leaders about India

“Economic growth will force better governance, and better governance will feed more economic growth”

SV, NYC, USA

The people and communities at large feel that they don’t have the ability to make a difference

Juzar Singh Sangha, Bedford

India has to take more care of the village population who are still struggling to live properly

John Karondukadavil, India, Living in Poland, Jaslo

India can become a superpower if she concentrates on the technology market niche

Devyani Prabhat, Jersey City, USA

India must counter its skills and wage crisis

Pallavi, Sydney, Australia

Hopefully India will lead the world towards a more humane and tolerant future

Nilesh, Antwerp, Belgium

India needs to take strong and clear cut decisions to emerge as a global player

Nivedita Nadkarni, Madison, USA

India is a country gaining economic ground in the world

Justin, Bristol, UK

Indians now have to develop a sense of national pride

Leila, USA

India will never be a superpower, much less a global power

Jonathan, Boston, USA

India has had a sharp increase in the estimated number of HIV infections

Sezai, Eskisehir, Turkey

India’s economic success is built on the sacrifices of previous generations

Shekhar Scindia, Edison, NJ, USA

While India’s economic growth is encouraging, its sustainability is doubtful

Sigismond Wilson, Sierra Leonean in Michigan, USA

Conclusion

India is a perfect solution for all those companies, which seek for cheap, yet technically skilled labor who have innovative minds and state of art to work over a project. The ample of facilities provide in a perfect working conditions. For rest, cyber laws are there to monitor and safeguard everyone’s interest related to IT sector.

All these reasons contribute for India to be as the most adored destination to many companies. . So we can conclude:

•India poised for an explosive growth in ICT

•India emerging as a global R&D Hub

•From brain drain to brain gain

•Millions of jobs will be created in ICT & other emerging technology areas

•Quality issues will have to be addressed

•Private Sector world class institutions will emerge with global collaborations

•India will reclaim its ancient heritage of the world’s most advanced knowledge-based civilization called “Bharat”.

India will become Warehouse of IT in the world

.

References

1. Goodman, Seymour E.; Burkhart, Grey E.; Foster, William A.; Mittal, Arun; Press, Laurence I.; and Tan, Zixiang (Alex), The Global Diffusion of the Internet Project, Asian Giants On-Line, Chapter 3 (India) and Chapter 4 (China), The Global Information Technology Assessment Group, Fairfax, VA, November 1998.

2. Press, L., Developing Networks in Less Industrialized Nations, IEEE Computer, vol. 28, no. 6, June 1995, PP 66-71.

3. [http://www.stpn.soft.net]

4. An Indian Perspective on IT & Engineering Programs ,Vijay Bhatkar, International Institute of Information Technology, Pune, India

5. Nasscom

6. Anuranjan Misra ” Software outsourcing from India” National Seminar on Strategies in Business Process Outsourcing”, IIMS, Bareilly, INDIA, Dec. 08-09 2004.

7. Anuranjan Misra” India – An Emerging IT Super Power” International Seminar on India 25 Years and Hence, IIMS, Bareilly, INDIA, Fev. 08,2006.

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An HIC steel plate is a carbon steel plate which is tested specifically to assess the susceptibility of the material to hydrogen induced cracking, a problem which is commonly found in the oil, gas and chemical industries in what are known as wet h2s and sour service environments.

The build up of hydrogen sulfide in pressure vessel tanks found in these industries is a major concern as it leads to a condition known as hydrogen induced cracking or HIC, where the inner wall of the pressure vessel suffers from the effects of hydrogen corrosion. As pressure vessels and steel boilers operate at a different internal pressure/temperature to the ambient pressure/temperature, such cracking can cause a reduction in load bearing capacity which could cause a potentially catastrophic failure. It is therefore vitally important that procurers in the oil and gas industry have confidence in the longevity of the steel supplied for this purpose.

HIC corrosion in a steel pressure vessel should be considered a risk at hydrogen sulphide levels in excess of 3.5mbar. Where this scenario exists, the steel should therefore be tested for its resistance to the onset of hydrogen induced cracking – the performance of the steel is directly related to the quality of the material and for this reason, greater emphasis is being placed on the quality of the steel at the processing stage. Controlling the amount of hydrogen that is picked up in the processing cycle of the material will increase the longevity of the plate in situ. Ultimately, engineers in the oil and gas industry need to have a realistic view of how long the material will last.

HIC resistant steel can undergo a variety of tests which are normally specified by the customer. Commonly, an unstressed sample is exposed to a solution at ambient temperature and pressure. After a predefined period the sample is withdrawn and assessed. Such a test can provide a clear indication of the materials suitability for purpose. Tests can be carried out at the mill itself or by an independent testing house. Certification is issued with the plate to confirm the result of any test, offering full traceability.

Another variant of the HIC problem is SOHIC or stress orientated hydrogen induced cracking. This is where exposure to hydrogen sulphide can effect the stress load around the heat affected zone of welds since this is the weak point in the tank. Whether HIC or SOHIC, the need for steel to be tested for resistance to hydrogen induced cracking is critical.

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