Newer markets beckon Indian IT professionals

It is clear now that the numero uno position held by the US

in attracting the crème de la crème of Indian IT is being challenged by other

countries, especially the European and the Asia-Pacific regions. Giving them

stiff competition are the oil-rich Middle-east countries. Many Indian software

companies, such as Aptech, Logix Micro Systems and Planetasia, have reportedly

seen an upward trend in tie-ups and offshore/onsite development projects in the

Gulf regions of Dubai and the UAE.

Though it all started with the US announcing an increase in

the H1B visa or the work permit visa from a mere 65,000 to 2 lakh, the rumblings

started with Germany announcing a raise in its visa numbers to 20,000, which are

specifically for IT related jobs. This move, in fact followed the German

Chancellor’s call to Indian IT professionals to take up opportunities in his

country. Not to be left behind, Japan and Australia also followed suit. Though

the UK was already in the reckoning, it was only in recent times that it is

pitching for IT in a big way. The Japanese proposal, which too came in during

its Prime Minister’s visit to Bangalore, includes issue of multiple-entry

visas valid for three years to Indian IT specialists.

A National Association of Software and Services Companies (Nasscom)

report says that in 1991, when our exports were close to $100 million, almost 95

per cent of our exports was to the USA with Europe accounting for the rest. Now,

at the end of the decade, when software and services worth $2.65 billion dollars

were exported, almost 23 per cent went to Europe and 60 per cent to the US. The

figure is expected to rise by another 10-15% in the next five years in favor of

Europe. Still, many were cryptic when questioned about a shift in exports from

the US to newly opened European and other traditionally closed markets such as

the Middle East. But Indian professionals, who have always worked to stretch

their horizons towards newer and better opportunities, seem to welcome the

opening up of new opportunities with its associated challenges. This is evident

from the fact that software companies are beginning to see a steady increase in

their software exports to Europe and other countries. The US no longer has a

monopoly hold over our software exports.

Though IT in a larger sense consists of many related fields

like e-commerce, telecom and wireless, when it comes to software exports, the

perceived notion is that e-commerce related exports form a large chunk of the US

market and wireless application software dominate the European market. Says

Sameer Kumar, CMO, Planetasia, "By and large, e-commerce solutions dominate

the US market whereas wireless holds the sway in the European market."

Agrees, Suresh, Manager, HR, Mphasis, "Embedded technology solutions form a

core area of the European segment and we have had excellent track record in this

area." Concurring with this perception, another software specialist says

that Euro solutions and interactive architecture are also major revenue earners.

A marketing professional from a leading software company says

that his company ventured into the German market in the area of Y2K and e-biz

solutions even before the now hyped up visa boom. He admits that though his

company faced many an initial glitch, it is now being acknowledged for the

quality project carried out and is now one of the sought after solution

providers. The company’s software exports to Europe, mainly to the UK and

Germany, account for 30-40 per cent of its revenues. And, this figure is

expected to improve in the coming years.

Continued...

Vivek Shiroor, GM, L&T IT Ltd., which has focused mainly

on offshore projects in the US along with a considerable presence in Europe and

Japan, says that though nearly 60 per cent of his company’s software exports

and services go to the US market and the rest to Europe. The company has plans

to capture the Australian market and also enter the largely untapped southern

European market.

Sheen Thomas from Aptech’s e-commerce division says that

nearly 30 per cent of the company’s exports is from the Asia-Pacific region

and the Middle East. According to him, it is not only the wireless and telecom

solutions that account for a major share of the exports but also e-biz and

e-commerce solutions. Concedes, Rekha, HR executive, Logix Microsystems,

"Though the US holds the sway as of now, with the other markets booming,

there will definitely be new opportunities on par, if not better than the

US." She says that her company has major plans for the next couple of

months and is open to exploring new avenues.

Much as one sees a gradual growth in the market potential,

apprehensions still dog IT professionals in the new fields. Analysts point out

that there are not many takers for offers from the other markets and the US

continues to be the hottest destination. This is attributed to a variety of

hindrances, ranging from cultural issues and work environment to unfriendly

immigration laws and disparity in pay and perks compared to the US.

Says Vivek Shiroor, "Germany and other non-English

speaking European countries are more conservative than the US or the UK. For any

high-end work, local help is very necessary. The local presence of Indians is

miniscule in comparison and hence the feeling of alienation is more profound

here." He says, "We have people who prefer to work on short-term

stints. The maximum period is for a year and a half or two. On an average, we

have sent about 90-100 IT professionals a year." He adds that the scenario

will change in due course as Europe offers much scope in terms of high-end

technologies which are both challenging and innovative for the IT specialists.

Agrees Sameer Kumar, "We see a huge demand and good market potential in the

area of cutting edge wireless technologies, digital management and CRM

technologies."

The other interesting feature is that companies deputing

their employees also offer exclusive training programs designed to familiarize

them with the culture, language and the general awareness about their

destination country. Companies like Aptech, Planetasia, Mphasis, L&T IT and

many others have designed and implemented such programs with remarkable success.

All these companies also agree on one aspect–that there

will be this perennial fear of talent squeeze and shortage of skill as long as

we don’t have trained and qualified professionals. The need of the hour they

feel is to curb the mushrooming of second rate institutes and to give impetus to

quality and standard training institutes.

According to a report, the Indian IT sector can clinch a

major share of the $2-3 trillion market for e-commerce and other IT enabled

services such as medical transcription and call centers including many

outsourcing works. Another report, in fact says that IT is now heading to be the

major revenue earner and could contribute significantly to the country’s GDP

in the coming years. Though, many of them attribute this to the cheap labor

available, it’s an established fact now that recognition has come at last

albeit late for all the hard work and quality inputs. From the land of snake

charmers, India has sure come a long way. It remains to be seen which way the

balance tilts in this largely uni-polar market.