Nasscom to seek central help for small IT firms

CIOL Bureau
New Update

HYDERABAD: Nasscom, the apex industry body of software and services

companies, is planning to approach the Union government for help for small and

medium IT companies.


"Many small and medium sized IT companies are struggling to tide over

the prevailing slump in the market. The problems are extrinsic to the companies’

competencies and performance. They need support at this juncture as some of

these companies are going to be real leaders once the market situation

improves," said Kiran Karnik, president of Nasscom.

Less than 100 of the 890 software companies registered with Nasscom are IT

majors with the rest being small and medium sized players. Karnik said that some

of the small players had great potential to be leaders in their respective


"Hyderabad based Pramati Technologies and iLabs, and Bangalore based i-flex

Solutions are primarily focussed on cutting edge technologies and have got all

that it takes to be a leader in their segments," he explained.


Karnik also said that the IT industry will witness a come-back in the

March-June quarter of 2002.

"We expect the current depressed condition will improve by end of March

next year. We are still confident that India will achieve the target of $50

billion export by the end of 2008," he added.

The country is emerging as a major player in the IT enabled segment, which

has witnessed a growth of more than 60 per cent in the first half of the current

financial year. He also said that there are plans to decentralize the apex body

and by 2002 Nasscom will be having its offices all across the country including