India keeps a blinkered view on profits?

It's not just a coincidence that Egidio Zarrella, Global Partner, IT Advisory Practice, KPMG, is fondly called 'Edge'; because that's exactly what he prefers to see in Indian IT industry, as he excludes and emphatically plays down the looming clouds of US slowdown, margin pressures, etc.

But there's one thing he kept on reminding in this conversation with Pratima Harigunani of CyberMedia News: "Forget the quarters and don't go the US way."

You have talked vehemently on how Asian economies can come together and dig deeper on the markets lying untapped in the APAC. How much of this re-direction is being spurred by the US slowdown?

The US, no doubt, has been in a predominant position in this marketing landscape. Portfolios keep facing such re-adjustments. It could be the US now, Japan next.

It could be up now, down next. Remember the Asian crisis and how we bounced back. From the current interest rate reshuffle, the possibility of recession, however, could be wiped off.

But adaptability is a big asset. Market changes, scenarios change, but people have to adapt to business dynamism.

Nevertheless, for India, the question that is important now is does India keeps a blinkered view on super profits that it has been earning or does it look at long-term sustainability.

There's so much that has happened. Margins have come under lenses, corporate results have lost the fizz, the rupee ascent continues unabated and so on. You still maintain that we should not talk about negatives when we discuss Indian IT industry and its future?

Yes. Stop focusing on the quarters. We need to stop doing that.

After years of serving the US and Europe, India could naturally pick up the tendency to depend too much on the quarterly results. What if one quarter goes bad?

Do you want to follow the US model and the consequent write-offs and stock-market obsession? It's time India re-looked and played the long-term game because it can do that very well.

Forget the super-profits for now. There's so much more to be done, let's not dwell on the negatives. It's been six years since the actual IT revolution in India took place. We need to be patient and think beyond the super-profits if we are thinking of markets like Japan.

What makes India fit and also, unfit if so, in this intra-Asian ICT opportunity?

India has one advantage that is inimitable: young demographics.

Australia, Japan, etc. with a major senescent population can never compete with India here. With about 32 per cent of population in the age 15 bracket compared to around 20 to 35 per cent in the 65 bracket for Australia, India clearly has an edge.

India needs to look at the issue of movement of people in a bigger way. I have a single $150 Visa card that makes my access swift in any Asian country, barring India.

Why is that? Think about other executives who need to travel through the long and fatiguing windows for business. Making the immigration procedures smoother will help in a big way.

But haven't Indian companies looked at Asian neighbours already?

Yes, in fact, it's the Indian companies, (as they themselves choose to address as, rather than global ones), who taught the West to set foot in countries like Vietnam and Philippines.

India has created jobs and industry in other Asian quarters.

India should now deal with China and learn their long-term mindset. Patience, especially in markets like Japan would be the new game now.

With metros and mini-metros all across India, there's domestic market waiting as well. Just keep a long-run focus, fix the bureaucracy and the game is yours in the long term. Just concentrate on your own edge and you don't have to do anything. The game is yours. India, could be its own enemy, no one else.

As you interestingly suggest, is Indichina or Chindia possible? Especially for the IT industry, are we nearing the India 'and' China scenario and moving away from the 'or'?

Yes, that's quite possible. There's so much that can be done if these two powers work together with each other's strengths. But China plays the 20 to 30 years game. Patience would be critical for India.

And how about India 'and' Australia?

Oh, there's so much we could do together. Thankfully, lots of efforts have been made at the top diplomatic levels already. I want Indian companies there. We don't have the population and skills of India and that combined with wisdom in Australia could be quite a combination.