‘Software exports could touch $50b ahead of 2008’

BANGALORE, September 6: India’s exports of computer software and

related services could reach $50 billion ahead of the target year 2008, if

value-added products get priority attention, according to an Indian

official.

The exports of computer software and related services is expected to be

around $3 billion in 1998-99, up from $1.8 billion in 1997-98, said

Electronics and Computer Software Export Promotion Council chief

(coordination) D. P. Gupta. He said that, in the new millennium off-shore

development, information-technology (IT) related services, e-commerce, in

addition to value-added products could enhance India’s exports. The

manpower available in India was mostly suited for IT-related services

because software development had the limitation of professional manpower

available, he added.

Mr. Gupta added that, efforts were being made to increase the Indian

computer software’s presence in the European market with off-shore data

processing facilities being among the key elements in this strategy. The

European market, which mainly consists of west-European countries, is

India’s second biggest market for computer software and services after

the US. The US accounts for nearly 57 per cent of Indian computer-software

exports. The share of the European market was 26 per cent in 1997-98 with

imports from India valued at around half a billion dollars. Lufthansa, the

German airline, has already set the trend in having a centralized

world-wide, reservation-data processing system in India. It is being

increasingly felt by Indian computer software exporters that they should

reduce their dependence on the US marketfor their growth and give equal

emphasis to markets in Europe and Japan.

During the recent visit of a 22-member Indian delegation to Germany,

the "number of deals" to export computer software to Germany

were finalized amid indications that German companies were scouting for

Indian partners for JV projects in the computer software sector.

Calcom Eexecutive Director Vivek Narang said that, there was a big

scope for India to tap the OEM market in Europe, which produces one

million colour TV sets through sub-contracting work each year."The

OEM market in Europe is worth an annual $40 million and we can capture at

least 50 per cent, if we are able to overcome the price barriers,"

Mr. Narang said, adding Chinese OEM products were generally priced 10-15

per cent less than the Indian.