India, ASEAN should hold hands in IT: study

Monday, 21 October 2002, 19:30 IST
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HYDERABAD: India and ASEAN have multiple opportunities to work together in IT and enabled services, a report released Friday said. McKinsey and the Federation of Indian Chambers of Commerce and Industry (FICCI) pointed out that IT companies in India and ASEAN can work together in the embedded software development, development and marketing of industry-specific solutions. It also pointed out possibilities of setting up new software development centers in Vietnam, Malaysia and other ASEAN countries. The fiscal 2002 revenues from research and development (R&D) services in India are estimated to be $600 million the McKinsey-FICCI report said, adding that embedded software, which has a global market of $16 billion can be tapped by India and ASEAN nations. The report said Indian companies are already building a sizeable presence in R&D services and embedded software. In a presentation on "Opportunities for Business Synergies," Alkesh Wadhwani of McKinsey said that Indian software and IT-enabled services (ITES) has the ability to earn revenue worth $70 billion to $80 billion by 2008. Echoing the projections of an earlier McKinsey-Nasscom study, the new report pointed out that achieving its long-term potential would dramatically change the face of the Indian economy. The contribution of the Indian software and IT-enabled services to the country's GDP (gross domestic product) would grow from the existing two percent to 10 percent by 2008, it said. "IT software and ITES exports would constitute 30 to 35 percent of all exports in 2008 and these industries would generate three to four million employments." It also pointed out that significant under-penetrated segments exist at both country and industry levels. "India will continue to be a preferred destination for IT sector as off shoring is rapidly becoming mainstream and there is widespread recognition of India's value proposition."
Source: IANS
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