IT firms look to Gulf as business in US slows

Friday, 18 October 2002, 19:30 IST
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DUBAI: Indian IT companies are increasingly focusing on the Middle East region to offset a demand slowdown in the U.S., India's prime software export destination. Close on the heels of Indian software makers Wipro and Infosys Technologies opening offices to cater to the vast Middle East markets, other players like Zenith Computers and some other hardware vendors are also eyeing the region. According to India's Electronics and Computer Software Export Promotion Council (ESC), IT exports to the Middle East currently at $170 million accounts for just two percent of the country's global exports. It, however, is poised for a significant upswing as a result of a new momentum given to diversifying the country's software export markets. ESC, which sponsored an Indian IT pavilion at the IT conference Gitex 2002, is looking at expanding its presence in the Gulf with strategic tie-ups with leading players in the region. Gitex 2002, the five-day IT show that ended Thursday, had a large international presence, with over 600 exhibitors from 37 countries representing some 1,500 companies, including top IT vendors. An ESC official said that three Indian companies, who were part of the ESC delegation to Gitex, have already confirmed their plan to set up offices in Dubai Internet City (DIC). "After the success in software sector we are now also focusing on hardware. In 2001-02, electronics hardware export from India touched $1.02 billion only and we expect it to cross $10 billion by 2008," said the official. "There is no denying the fact that IT sector has given a formidable brand equity to India in the global markets." Kamal Vachani, regional representative of ESC in the Middle East, said the council is making a strong presence at Gitex as part of its aim to foster closer ties with the region's leading technology players. "We are looking forward to take part in Gitex every year to showcase the capabilities of Indian software and tap the Middle East market," he said. According to Vachani, ESC has stepped up promotional activities in certain identified regions and will continue to step up the momentum to explore newer markets, including some countries in the Middle East. He said the UAE representation of ESC has been instrumental in promoting export to the Gulf and Middle East region since its inception three years back. "ESC has built a strong membership base of over 2,200 manufacturers and exporters covering the entire gamut of electronics and software industry who together contribute over 14 percent of national export earnings." The ESC delegation has also held talks with the Dubai Internet City (DIC) officials to set up an IT incubator in DIC to enable small players operate efficiently. Wipro Infotech, one of India's leading IT service provider, recently said it has bagged a major contract from the Dubai Municipality for providing high-end IT operations management services. The company has also tied up with Riyadh Pharma, the leading pharmaceutical company of Saudi Arabia, to implement Enterprise Resource Planning (ERP) system. Suresh Vaswani, president of Wipro Infotech, said his company is committed to growing business in the Middle East. Wipro Infotech has managed to built a strong customer base across the region in just two years of starting operation. "When we decided to expand into the Middle East, Dubai was the first destination for us. We are happy with our performance in the region and have received an encouraging response from our valued customers. "Having said that, we have won customer confidence in the region through a combination of our proposition of value added IT services, backed by global experience and robust quality processes. We are aiming to consolidate our business across the Middle East."
Source: IANS
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