Indian Information technology companies can brush aside their worries about the impact of a slowdown in IT spending by US firms, according to Nasscom president Dewang Mehta. He believes that any decrease in IT spending in the US would, in fact, be beneficial to Indian IT companies. ``Outsourcing of software from India is due to the quality and cost efficiency of the services they provide,'' he says.The IT enabling of Indian companies would also provide a big business opportunity. He expects this segment to chip in $2.7 billion of the total revenue target of $6.7 billion of IT companies in the year 2000-01.
On the hardware front, Mr Mehta feels that more emphasis should be placed on micro-electronics. Research and development must be carried out in this niche. ``Of course, mega fabrication plants have to come up some time in the future,''he adds.
Mr Metha, who is very optimistic about the future of the software sector, feels that the ambitious target of $50 billion of software exports by 2008 would be achieved before the target year.
In order to strengthen the presence of Nasscom, an office has been opened in Bangalore. Through its presence in the garden city, Nasscom hopes to be of better service to its 130 city members. It would also help in liaisoning between the members and the Karnataka state government. Among other things, it plans to press the need for direct connectivity between Bangalore and major international destinations.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.