India lags way behind China in domestic use of software as the country uses only 23 per cent of total production, according to a UN report.
"The domestic use of software in India is only 23 per cent of total productions compared to almost 90 per cent in China. Moreover, Chinese production is almost three times to that of India," according to a report by United Nations Conference on Trade and Development (UNCTAD).
UN Secretary General Ban Ki-moon said in the report said, "The growing emphasis on ICTs (information and communications technologies) in the delivery of government, healthcare, education and other goods and services demands customised applications. Countries therefore need the capacity to adopt, adapt and develop relevant software".
"Such capacity is also important to facilitate successful technology transfer," he added.
The report further said India's computer software and services spending for 2011 stood at USD 8.4 billion which is 8.7 per cent share of total information and communication technology spending in India.
"Computer software and services spending is only one segment of ICT," Joseph said.
Citing estimates of World Information Technology and Services Alliance and IHS Global Insight, the report said the global spending on computer software and services (excluding software embedded in devices) amounted to an estimated USD 1.2 trillion in 2011.
Developed countries accounted for around four-fifth of this spent, said the report Information Economy Report, 2012.
The report further said despite being the developing world's leading computer software service exporters no Indian firm featured among the top 100 computer software companies.
"This is because Indian companies are focusing primarily on custom software development for multiple clients rather than on developing their own branded software products," it said.
The report added that in listings of IT services companies, however, India is well represented, with Tata Consultancy, Wipro and Infosys among the top 15 in the world.
The reports shows that around 541 greenfield IT projects involving foreign investments are being developed in India.
The UNCTAD reports has recognised the emphasis given by Indian government on increasing usage of IT within India under the recently announced National IT Policy 2012.