Detailing the preparations being made to overcome the Y2K problem, IT audit manager Ajoy Basu said at an interactive session in the Indian Chamber of Commerce that ITC is committed to protect critical data related to manufacture and sales in various divisions. The company started work on Y2K in 1996.

A contingency plan is being worked out to ensure that business continues unaffected beyond the year 2000. The company is relying on the universally-accepted model of awareness, assessment, renovation, validation and implementation to tackle the problem.

Basu admitted that a lot of work, including cost estimation of the Y2K project, is yet to be taken up. But the company enjoys the natural advantage of possessing a proper inventory of its IT assets and their owners.

Thelegal issues associated with Y2K and vendor compliance also need to be sorted out, he said. The company's IT structure is well-defined with each division having autonomous status and a steering committee which is ultimately responsible for the successful implementation of the Y2K project.

The project's crucial phase would be testing and validation of the new systems which would account for nearly 50 per cent of the project cost, Basu said. Care would be taken to preserve critical data related to production, excise and sales which are vital for the company, he added.

ANZ Grindlays general manager-operations (India) Girish Vaidya said his bank will have its Y2K solution ready in a couple of months. A gain from the project is that the bank now has a full picture of its IT systems and a complete inventory of its IT assets, he said.

However, he admitted that there is no competitive advantage of being an early bird in Y2K compliance. It is more important to "resolve problems with customers, suppliers andpartners", he said.

Phoenix Software chairman AN Datta highlighted the business opportunities for Indian companies working on Y2K solutions. Out of the total business volumes of around $800 billion estimated by an international agency, India has targeted revenues of $5 billion, he said.

Interestingly, a project of this magnitude will not result in any value addition. It will only ensure that systems remain intact and businesses run unaffected. This is a potential area of conflict between the chief executive officer and the chief of information technology of a company, Datta said.

In his welcome address, ICC president AV Lodha said: "Today nearly 20 per cent of India's software professionals are devoting their time to Y2K. By 1999, over 60,000 software professionals are expected to work to mitigate this global problem."