Infrastructure hurdles can slow India's IT sector growth

Wednesday, 25 September 2002, 07:00 Hrs
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CHENNAI: Lack of proper technology infrastructure in India can put a brake on the growth of the country's booming information technology (IT) sector, according to a study released here.

While lauding India for taking rapid strides on manpower and quality front, the study released by the Confederation of Indian Industry (CII) says the country needs to improve infrastructure for technology services.

The report, which focuses on major hurdles in the way of the Indian IT sector's growth, has been prepared by KPMG India. It was released at the ongoing four-day IT industry conference here, Connect 2002.

The conference, which was inaugurated Wednesday, is being organised by CII and has brought together experts from India, the U.S., Britain, Malaysia and Singapore to discuss what India needs to do "to become the world's first processing centre."

More than 1,000 delegates have come to attend the conference and 100 IT companies, service providers and government participants are showcasing Tamil Nadu's strength in the sector.

Participants like Videsh Sanchar Nigam Ltd., Bharti Telenet and RPG Enterprises are exhibiting mobile, Web-based products and telecom services.

The governments of Tamil Nadu, Andhra Pradesh and Maharashtra are all showcasing their states at the Chennai Trade Fair Complex on the outskirts of the city.

Tamil Nadu Chief Minister J. Jayalalitha inaugurated the conference and took the opportunity to announce an ambitious IT policy for the state.

As part of the policy, IT companies, giving employment to the physically challenged and developing software for the physically challenged, will get tax concessions and special privileges, the chief minister said.

On Friday, Jayalalitha inaugurated the Mahindra City IT Park in Chengalpattu district, 65 km from the state capital. The industrial facility is expected to draw investment of 750 billion in the next five years.

Raj Mashruwala, chief operating officer of TIBCO Software Inc, said India had a great future in the IT sector.

Indian IT companies have to figure out and focus on "how to get your assets together in a unique way," he said, adding finding unique ways to put processes together is a must if India were to beat Israel and Ireland.

The coming days will be for small and medium IT companies, Mashruwala said, noting the state of Tamil Nadu has nearly 700 such players. In India, IT companies also need to associate closely with educational institutions to support research.

Source: IANS
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