CALCUTTA, May 16: Europe is facing a huge shortage of skilled information technologists needed to tackle the twin problems of year 2000 and euro conversion, according to a paper on IT prepared for the forthcoming EU-India Partenariat scheduled for 1999.The paper, prepared by the Bangalore-based Software Services Support & Education Centre Ltd (3SE) jointly promoted by the European Commission and the government of India, is being presented in cities all over India to promote the partenariat.The paper states that Indian firms can grab a major chunk of the $106-billion European software and services business if they can work out strategic alliances with European firms. Around 36 per cent of the $106-billion market is for software products and the rest is for services.The business is expected to grow by 13.6 per cent in 1999 against eight per cent achieved during the last few years as the deadline for the conversion gradually draws near. Eleven European countries are expected to convert to the euro in1999. Citing an example, the paper states: ".in the UK alone, as against 30,000 recruits needed, just 10,000 graduates are added each year."Regarding the potential of the year 2000 and euro conversion-related business, it states ".the Y2K problem looming large further constrains development already hamstrung from inadequate manpower. The coup de grace is the equally formidable exercise that implementing euro will demand of the software industry.""Although general awareness of the magnitude is widespread, there appears to be a curious lack of urgency even now. This is bound to change as the immutable deadlines approach and practical stories of failures grow fast and furious," it adds.As of date, only three per cent of the companies are euro-compliant. More than 36 per cent of the corporates are yet to draw up a plan for the conversion project while 36 per cent have completed evaluating their problems in 1997. Nearly 23 per cent of the European companies are expected to change over to the euro bythe end of 1999. Euro conversion is much more complicated than the Y2K problem, which is essentially technical in nature. The former will involve concepts of business and finance besides handling a dual currency system as the original currency will remain in circulation till the member countries feel confident of the euro. The conversion will also involve outside firms which conduct business with European companies."The software sector is not dominated by a handful of players. While large competitors do exist and operate on a global scale, they co-exist with a large number of small- and medium-sized rivals. This is even more the pattern for the three largest software markets in Europe: Germany, UK and France, where the top 10 IT vendors control less than 40 per cent of the market," the paper states."European vendors are facing competition in their own countries from their neighbours as well as from, principally, US vendors. They will face even more intense pressures in the months ahead," the paper states.
