Nasscom, ITAA sign MoU for greater co-operation

NEW DELHI: Nasscom and Information Technology Association of America ( ITAA)
have signed an MoU to facilitate and increase trade and co-operation in IT
software and services sector between India and USA. Although the two industry
associations have been working closely there has not been any formal
understanding until now. The MoU is expected to act as a primary channel of
co-operation between the companies in the two countries; co-operate in public
policy efforts; organize exchange of information and facilitate contacts between
member companies; promote each other's surveys and facilitate the flow of
investment between the two countries.

The significance of the MoU is in view of the fact that 60 per cent of
India's software exports are to US and therefore a lot of issue regarding
non-tariff trade barrier and manpower migration issue need to be sorted out. In
fact, the ITTA played a crucial role in increasing the cap of granting H1B visa
from 90,000 per year to 1,9000 per year for a period of five years. The agenda
before ITTA now is to extend the period for the increase in cap for H1B visas.

Speaking about the change in the ITTA's attitude over the years, particularly
with reference to India, ITTA president, Harris Miller said, "With the
globalization of IT products and services, ITTA is increasingly looking towards
alliances with industry organizations in other countries particularly
India." The Indian software industry has also matured over the past decade
from performing low-end services to high-end quality research and development
programs. Besides many Indian companies like TCS, NIIT, Infosys, etc have
themselves become members with ITTA and therefore the association now looks
towards India for much closer cooperation. Nasscom president, Dewang Mehta said,
"In the backdrop of the slowdown of the US economy, the Nasscom-ITTA
assumes significance as it would try to bring new business to IT industries of
both countries."

Later addressing a gathering of eminent industry gathering, Miller urged
members to lobby towards ensuring a free Internet environment without government
regulations. Internet issues that relate to taxation, security and privacy must
be left to be regulated by the "best practices" within the industry.
He also urged member to take up the cause of software piracy with the
government, which is causing huge loss to the sector. In terms of connectivity,
he urged the industry to ensure broadband connectivity in the last mile without
which broadband becomes meaningless.