Software exports rise 65% in third quarter

"We have been speaking to our member companies, analysts and major clients and based on our discussion we expect no slowdown whatsoever and are confident of meeting our export target of $6.24 billion during 2000/01 and $9.5 billion in 2001/02," Mehta said. The industry has been growing at an annual clip of well over 50 per cent, and the current year’s exports would come on top of the previous year’s $4 billion. Talk of a slowdown dampened sentiments on software stocks somewhat, but most industry leaders’ Q3 results were in line with, or surpassed, expectations.

Nasscom Chairman Feroze Vandrevala said a survey of chief information officers in the United States showed that spending on informationtechnology was expected to slow this year. The survey, by brokerage Merrill Lynch, revealed that companies’ projected spending increases for 2001 were expected to drop to 56 per cent from 78. The increase in information technology budgets would be 5 per cent instead of 11 per cent. Tighter budgets meant offshore contracts could benefit Indian companies, he said. The survey showed that 14 per cent of those polled aggressively use offshore ventures.

"As the economy slows, there is more pressure on companies to get more bang for the buck," Vandrevala said. Elaborating, Mehta said a cut in the IT expenditure could even increase the quantum of outsourcing to India as that will help US companies improve their productivity. Keeping in mind the rapidly changing international IT landscape, Nasscom 2001, the annual IT event organised by Nasscom, will provide the perfect platform to evolve strategies that will help ensure that the Indian software exports continue to grow by more than 50 per cent even beyond 2002.

Mehta said Nasscom 2001 will have five components — international business conference, international exhibition, technology summit, e-summit cyber exhibition and VC forum. The premier IT show will facilitate business networking.

A major draw at Nasscom 2001 this year is the line up of reputed speakers from across the globe. The exhibition cum conference will be inaugurated by the Minister of Information Technology Pramod Mahajan with Maharashtra Chief Minister Vilasrao Deshmukh presiding over the function.

Highlighting the Nasscom 2001 advantage, Mehta said "Nasscom 2001 is not just about the international conference and exhibition, in its current avatar it is a lot bigger and bolder than any of our earlier events. The year’s event is an exciting blend of the latest technologies and cutting edge business and marketing strategies that will help Indian IT software industry gain a sustainable competitive advantage in their area of expertise. Nasscom expects business worth over Rs 2,500 crore to be generated through this event".

"We have large participation from Indian and MNCs at both the Nasscom 2001 business conference and exhibition. This includes 200 companies which are participating as exhibitors and the 60 companies which are sponsoring the event," he said.

Drawing attention to the special emphasis being made at Nasscom 2001 for doing business with target countries, Mehta said: "At Nasscom 2001, we are conducting business workshops targetting UK, Belgium, Australia, UAE, Canada and the USA. At these workshops we will discuss issues relating to issuing of visas, work-permits and the procedure for opening branches and subsidiary offices for Indian companies in these countries".