When we talk of convergence, it is essential to have a regulatory body such as the FCC in United States. We might have such a body in India in the next few months. Earlier, when the information technology industry was in its nascent stages, hardware and software were considered to be two sides of a coin. Now, while the hardware segment is the coin, software and telecom industries are its two sides.

What changes need to be made in policies and regulations pertaining to the telecom sector?
The list of changes needed is quite long. Let me specify a few changes which call for immediate action. We need an open policy immediately which is not monopolistic or duopolistic. It should be a free market-driven policy where multiple companies are enabled to work together towards fostering healthy growth of the industry. And, there should be a revenue-sharing model with the government. There should be no any entry barrier to this sector.

What about policies pertaining to investments and procedures in the Indian software industry?
As far as investment policies are concerned, we are on the right track. However, the government should be more open when it comes to mergers and acquisitions. Indian companies should be allowed to acquire companies overseas without any prior permission. Domestic acquisition norms should be made simpler. Consider, it takes almost a year to acquire a company in India and make it operational.

The Exim Policy deals mainly with removing the physical bonding of software units with software technology parks, export-oriented units and export processing zones. The commerce minister has announced that this would be done away with. But, so far there has been no formal notification to this effect.

Are you proposing any changes in labour and taxation laws pertaining to the Indian software industry?
As regards labour laws, women should be allowed to work in night shifts in information technology units. Clear-cut exit policies are needed here. As for taxation, we are on the right track. No more increases in corporate taxation is desired. Software exports should continue to get the benefits of exemption from income-tax. There are some anomalies in the new s.10A and s.10B of the Indian Income Tax Act which need to be sorted out at the earliest.

How can Indian software companies benefit by working with regional hubs such as Ireland, Singapore and Australia?
Most of these developed countries are competing with us. But, they need our knowledge-workers and expertise in software, IT-enabled services and dot-coms. For example, Singapore has a well-established telecom infrastructure but requires content development. This is where we can synergise operations -- we can take care of content, while Singapore can provide the telecom infrastructure. Consider Australia. This continent has a shortage of skilled manpower. India can help here. As for Ireland, it is getting too expensive for software and information technology-enabled companies. Joint-ventures with Irish companies can be struck here to help reduce their internal costs. Ireland can also help India to enter the European market.

What needs to be done to stem the workforce turnover and migration in the Indian software industry?
It is already a downward trend in workforce turnover in the Indian software industry. The government has eased the tax laws to make employee share ownership plans, Esops, attractive. Earlier, an individual paid tax twice while availing Esops. First, Esops were taxed as perks when the option was exercised and later as capital gains when a sale was made. But now, tax is required to be paid only once. Only capital gains at the time of sale. As a result, tax on Esops has come down from a high of 38 per cent to just 10.1 per cent. This has had a significant effect in reducing workforce turnover.

Are the restrictive labour regimes of some states hampering growth of the Indian software industry?
Yes. For instance, the policy of not allowing women to work in night shifts is hampering the growth of IT-enabled services such as medical transcription, call centres and back-office automation. Then there is this question of forming trade unions. The Indian information technology industry has been alien to this concept of unions. We do not want trade unionism to get into this industry, especially into IT-enabled services.

Is the Information Technology Bill comprehensive?
It is very difficult to create cyberlaws. For, the information technology industry is evolving very fast and one would require amendments every six months. However, for the time being, the Information Technology Bill is quite comprehensive. But, very soon we may require changes in it.

Where do you see the Indian software industry five years down the line?
I think it is more appropriate to talk of the nation, rather than the software industry. In the next five to eight years, this industry would have taken the nation to a higher altitude in terms of economic growth, employment opportunities, cent per cent literacy and well-established healthcare programmes.

By 2008, the Indian software industry would have contributed as much as 7.5 per cent to our GDP growth rate and would have registered annual exports to the tune of US $50 billion. That is, approximately 35 per cent of India's total exports. More importantly, the Indian software industry would have created an additional 2.2 million jobs and distance education would have helped us to achieve a 100 per cent literacy level.

How does Nasscom propose to weed out software piracy in the next five years?
Nasscom has always adopted a carrot-and-stick approach to tackle software piracy. The carrot refers to education programs, seminars, addressing schools and colleges on the significance of using original software and rewarding those who have made an effort to inform us on piracy through our anti-piracy hotline. The stick refers to police raids on die-hards.

With the launch of our anti-piracy toll-free hotline 1-600-334455, our efforts are gathering momentum. At Nasscom, we plan to give further boost to our `Zero Tolerance Towards Piracy' program through training of police and judiciary on piracy-tackling issues. We plan to work closely with the government in reducing piracy in the State sector.

Raids targeting large end-user organisations are also essential to instill fear among corporates. In the case of individual users, surprise raids should be of some help.

As for software training institutes are concerned, Nasscom plans to sending a warning letter first and follow it up with police raids. We are also launching an advertisement campaign soon to educate people against software piracy.