Extension of STPI scheme a priority: Raja

NASSCOM 2008: INDIA LEADERSHIP FORUM

Union Minister for Communications and IT A Raja assured that the Indian IT sector that the ministry was doing its best to convince the government that the Software Technology Parks of India (STPI) scheme should be extended beyond 2009.

Addressing a 1,600-strong audience on the first day of the three-day Nasscom India Leadership Forum 2008 Summit in Mumbai, he said,"Based on the feedback of the IT industry, we are looking into the issue of extending the STPI scheme on a priority basis. We feel there are many start-ups and small and medium enterprises for whom special economic zones may not be a viable option."

"We will be strengthening the IT Act 2000 based on the feedback we've got from the industy. Besides, we also feel that there is a need to launch many more schemes along with the human resources ministry to create a better employable talent pool," he added.

This year, the delegates from the US, the UK, Canada, China, Costa Rica, Egypt, and others have come to the summit.

President Nasscom Som Mittal said: "While we appreciate the efforts of the government to set up SEZs and larger firms can take advantage of the tax benefit. IT firms are also going to tier II and II cities where having the STPI scheme will help to set up the business."

He said going ahead, Nasscom was committing to going green and launch initiatives accordingly.

While admitting to the pressures from the supply side, the rupee getting stronger, besides talent shortage and uncertainty about the global environment, Lakshmi Narayanan, chairman Nasscom and vice-chairman Cognizant, felt there is still enough opportunity to grow.

"These pressures will continue. This is not something which is temporary. For those who cannot keep pace with this will be driven out," he added.

Sudhakar Ram, CMD, Mastek, said,"If we want to be $100 billion industry, we need to move away a from geography-led business model to a business-led model. While India's share in the US market is just 2.8 per cent, in the UK, it is 5.9 per cent. The US might account for 67 per cent of Indian IT/ITeS revenues. India's share is very small."

Former President A P J Abdul Kalam, who addressed a special session, said, "Don't be a software power-house but a knowledge services power-house. While the outlook looks positive, I find the industry is yet to create an environment essential for targeting 20 per cent of global IT spending from 4 per cent at present."

Mark Mayo, partner and managing director (global advisory services), TPI, said, "The year 2007 was soft for us. For 2008, we see a growth of 7 per cent in revenues from across the globe. While the growth momentum is there, it does not keep pace with that in the last five years."