SOFTWARE INDUSTRY: BUMPY ROAD AHEAD
Article Abstract:
The software industry is the only sector in India to register a 50 percent growth despite general recession. India's expected exports of $2 billion in 1998-99 constitute only 0.5 percent of the total global software market of $375 billion. The Government of India has set up an information technology (IT) task force to recommend measures to increase IT industry exports. This task force has, among others measures, suggested grant of the infrastructure facility status to electronics and IT industries, providing working capital finance to software companies and creating specialised training institutions for imparting IT education. The Finance Minister of the Government of India has announced several incentives for the sector while moving the Finance Bill and these include a 100 percent customs duty exemption on all software used in the sector. It has been projected that by 2000 AD, India would register the highest growth rate in the Asia-Pacific region while attaining the third position in the market. The IT sector in India is hampered by non-availability of quality professionals. India has not made any major efforts to export value-added and branded products. India's software export revenue is expected to fall once the Y2K projects, which account for nearly 20 percent of total software exports, are completed. Consequently, small and medium IT units would be hit most. (tsm)
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1999
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SOFTWARE INDUSTRY: "WE ARE NUCLEATING A RATING AGENCY"
Article Abstract:
Mr Dewang Mehta, the President of the National Association of Software and Service Companies (Nasscom) has stated that Nasscom is in the process of setting up a nucleated rating agency to provide ratings to various software companies. Certain companies in India which are not involved in the software business are altering their names by adding words like software or infotech to take advantage of the positive sentiments favouring software scrips on the bourses. Nasscom, the apex body of the computer software companies in India is taking various steps to arrest this malpractice. It has initiated a dialogue with SEBI to curb such activities. It has tightened the procedure for becoming a member of Nasscom. A company seeking membership of Nasscom has to get referrals from at least two companies which have been members of Nasscom for the last three years. Nasscom also plans to bring out an advertisement campaign warning investors. (tsm)(vr)
Comment:
Mr Dewang Mehta, the President of the National Association of Software and Service Companies (Nasscom) has stated that Nasscom is in the process of setting up a nucleated rating agency to provide ratings to various software companies.
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1999
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