Global CEOs back our stand against protectionism: Keshav Murugesh

Keshav Murugesh, the new chairman of Nasscom, takes over at a time when the information technology (IT) industry is going through a transformation. FY20 is the first year when the IT industry body has discontinued the long-followed practice of giving the annual growth guidance for the sector. At the same time, the angel tax has created concerns in the start-up ecosystem. Amid this, Murugesh, who is also chief executive officer (CEO) of business process management (BPM) firm WNS Global Services, tells Debasis Mohapatra Nasscom’s focus areas will be on skilling and reskilling of Indian engineers, apart from expanding the market opportunity. Edited excerpts:

 
 
Nasscom has discontinued the practice of giving annual growth guidance for the IT and ITeS sector from this year. Does it indicate the losing relevance of the industry body, or is it just the new business reality?

Of course, I am coming at a crucial juncture. But, there is no negativity (with issues such as no guidance on growth from this year). There are many opportunities in the market, and I am excited to hold this responsibility. The disruption in client geographies opens up opportunities for Indian firms in the areas of deep technology to drive transformation agendas.

 

So, you are saying it is more of a business reality now?

With all the disruptive changes, and the available opportunities, it is important to appreciate that the old way of giving guidance is no longer relevant.
 
What will be your top priority areas as the chairman?

Skilling and reskilling is an important area to manage new business. With all the disruption, we need high quality talent. I believe the ability to go after deep tech areas will not only affect international client markets but also the domestic one. Also, the ability to adopt technology models to drive inclusive growth through creation of jobs in tier-II locations in India is a key aspect for us. Apart from these, exploration of new markets will be another priority.

 
Protectionism is on the rise globally with increasing difficulties in moving Indian engineers to onshore locations. Do you feel Nasscom will be able to address this pain point under your leadership?

We have to understand the business model has transformed a lot. We should not expect the clients to look for solutions only driven from offshore locations. It is exciting that the companies in the sector are focussed on creating innovative solutions to expand the market for our services. It is the reason most IT firms are setting up newer centres in onsite geographies in new technology areas. On the other hand, we have seen the protectionist theme across the globe.

 
Therefore, from an organisation point of view, we have to appropriately explain why global companies are able to perform (well). To a large extent, it is because of the availability of strong talent from India. But, we have to take the right steps. There is a lot of support from the CEO community in client geographies to our stand.
 
An advance ruling of the tax department recently said the back office support services qualify as 'intermediary' services, and not exports. If this interpretation stays, most IT services will be liable to pay tax. What are your thoughts on this?

The governments, whether state or Centre, are extremely supportive of the role Nasscom plays, its impact, and its member companies. Therefore, as new policies are formulated, they are continuously engaged with the industry body for right policies to be created. So, the confusions would be ironed out in the future.
 
Will Nasscom’s engagements with e-commerce players and start-ups get a boost under your leadership?

Absolutely. When we talk about fintech firms or e-commerce companies, they are a very important part of Nasscom. They are already represented in the industry body, and this relationship will only strengthen (further).
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