BANGALORE: India is expected to emerge as a major e-commerce services provider
during the next 2-3 years with exports from this sector touching $1 billion by 2002. This
was pointed out by National Association for Software and Services Companies
(Nasscom)
president Dewang Mehta recently in Bangalore while addressing Directions 2000, IDC
India’s 12th Annual Computer Industry Briefing Session.
Arguing that software industry would not be effected in the
post-Y2K period, Mr Mehta said that revenue from Y2K services had not been more than 19
per cent of the total Indian software export market. ``E-commerce and IT enabled services
will offset the shortfall due to the absence of Y2K market during 2000. There could be a
slowdown during October-December 1999, as many companies may prefer to defer their IT
projects till 2000. But, the top 25 companies may go for taking orders to work offline
during the last three months of this year. Therefore, no slowdown is expected in the
software industry in the post-Y2K scenario,’’ said Mr Mehta.
The key to India’s success in software exports during
the post-Y2K world would be new concepts such as Interactive Integration, which combines
any new system with e-commerce. ``The top Indian companies who are experts in legacy
systems and client-server architecture will either have to create a separate e-commerce
division or acquire existing e-commerce companies as making legacy systems web-enabled
would be one of the most potential business areas,’’ Mr Mehta pointed out.
The Nasscom president said that the real boost in domestic
software will come from government spending. ``Software cannot grow in isolation. It has
to permeate in all sections of the society…Somewhere in 2004 the growth rate in
domestic market will catch up with the export market, even though it may take a few more
years the revenues matching in absolute terms.’’
Nasscom is also lobbying with the government for granting
trade visas instead of H1-B visas for software professionals seeking jobs outside the
country. Mr Mehta said that Nasscom would submit a report to the external affairs ministry
and the ministry of commerce soon in this regard
In his address, Cyber Media (India) Ltd. managing director
Pradeep Gupta said that information appliances would be the focus in the future world of
virtual communities. ``Applications will drive technologies in the future,’’ he
said, adding that the new Internet user needed to be understood. ``He could be from a
well-to-do family or a low income group or even a child. You should also know who you are
selling to….Also, the companies should have the image of an Internet
player,’’ said Mr Gupta.
Pointing out to IDC reports, IDC Asia Pacific, computing
systems research, vice president Dane Anderson said India would become the third largest
market in the Asia Pacific region by 2003, after China and Australia, with a compounded
annual growth rate of 28 per cent.
On the growth of Internet commerce, Bharti BT Internet Pvt.
Ltd. chief executive officer N. Arjun said that relevant local content will be one of key
drivers. He also called for the simplification of complex tax laws and reduction of high
duties on PCs and PC components. ``The present level of Internet penetration is very low
and the industry has to play active role in this field,’’ Mr Arjun added.