Germans scout for software JVs

The promotional events at Frankfurt, Bremen, Stuttgart and Dusseldorf for the 22-member team to expand business tie-ups with German firms, met with a particularly enthusiastic turn-out in the port city of Bremen, sources said. Although specific numbers are not available, industry captains said a quot;number of dealsquot; had been finalised and several Indian and German firms had agreed to explore in depththe possibilities of strengthening cooperation.

The trip was organised by the Indo-German Chamber of Commerce IGCC jointly with regional chambers of commerce in Germany, the Central Association of Electrical and Electronic Manufacturers and The Information Technology Association.

Speaking at the inaugural event in Frankfurt, India8217;s ambassador here Ronen Sen said Indian and German firms should explore possibility of setting up joint ventures and strategic alliances in addition to sourcing software from India. Noting that there was vast untapped potential in software cooperation between the two countries, Sen said Indian software was suitable not only for large companies but also for small and medium enterprises, which constitute one of the most rapidly growing sectors of the German economy.

Sen pointed out that while Indian software exports have been growing exponentially, only 21 per cent of these are destined for Europe as against 58 per cent for the US. Hence, there was much scope for furthercooperation in this area.

Embassy officials here said that the Indian delegation8217;s visit was a positive development and needs to be followed up. Indian companies have already executed orders for German firms and have been averaging a growth rate of 160 per cent in the last few years, the sources pointed out. Though the stated goal of the delegation was to establish new contacts and explore new markets, Indian firms are, also keen to reduce dependence on the US market, sources said.

Wipro and the software arms of Larsen and Toubro and Mahindras were among the delegation which also included representatives of ten Bangalore-based companies. German industry representatives admitted that software imports from India were low despite India8217;s ability to churn out world-class software at low costs.