'SMEs' contribution crucial in achieving software export target'

The contribution of small and medium enterprises (SMEs) in the IT sector will be crucial in achieving the software exports target of $60 billion by 2010, according to Kiran Karnik, president of Nasscom.

After unveiling the plaque of Thinksoft's Testing Center for Excellence, he said the country had achieved software exports of $24 billion for 2005-06 and the target $60 billion software exports by 2010 could be achieved only when companies in small and medium sector became giants of tomorrow.

"We cannot reach the target only with the existing big IT companies," he added.

He said the IT industry should focus on executing high value, sophisticated and complex jobs. "We are looking at India as a powerhouse of intellectual property creation. In this context SMEs have a crucial role to play," he added

Urging the small and medium companies to focus on niche areas, he said Nasscom was planning to take specialist SMEs delegation to other parts of the globe to market their business and create linkages between domestic and foreign SMEs. It will initially start the exercise with Europe.

He called for an eco-system where there would be a relationship between big and small companies like in automobile and other sectors.

Karnik said Nasscom had taken up the issues with regard to the creation of special economic zones for IT industry with the government and stressed that the government should re-look at the issue and take corrective measures to remove the anomaly.

Nasscom has pointed out that the creation of special economic zones for the IT industry without extending any benefits serves no purpose.

Nasscom has suggested that all the companies registered as STPI units should be extended the concessions offered to SEZ units.

Unless this is done, large companies with inherent advantages, would be better placed to locate their new centres or even move to these SEZs, while small and medium companies would find it very difficult to keep apace.

Karnik also urged the government to promote integrated townships and pay attention to developing Tier II and III towns to decongest major cities.

"We have not seen any such township programmes. We need holistic townships with work space, living space, schools, shopping malls which are connected to good international airport.