Opinion The whole is larger than the bits

One industry that will certainly play a critical role will be the IT-BPO sector and NASSCOM,the industry association guiding the sector,has been a role model for effective partnerships and collaboration,both internally and externally. Having worked with industry associations,I am passionate about NASSCOM,because of its ability to continuously reinvent itself,stay ahead of the curve and provide leadership.

Critics may question whether NASSCOM can continue to reinvent to be as effective in the future; whether it can dovetail its agenda to the country’s focus on inclusive growth or whether the diversity of views could dilute NASSCOM’s agenda in a growing environment of global protectionism. (‘The civil war of Bangalore’ by Saritha Rai,IE,September 7.) Their concerns are well taken,but here is why they have no reasons to worry.

Unlike most other sectors,NASSCOM is not a recent convert to this philosophy but has known it from the time of its inception given the nature and the business models its members follow.

Representing a truly global industry,it has dealt with global problems and issues for a long time and will continue to do so. Two decades ago,when it was unheard of and unfashionable in India,NASSCOM was pushing for liberalisation at home. With the same zeal,it has become the face of those fighting global protectionism. In this movement,it has successfully built international collaboration,partnered with global think-tanks,researched facts,represented cogently to policymakers and successfully built thought leadership. Senator Schumer’s visa bill today has as many critics in the US as overseas,people who support global trade associations in the need for open borders.

A $60-billion industry that has the ability to work cohesively with disparate groups clearly reflects that diversity does not necessarily mean conflict. I really believe NASSCOM is outstanding because it drives a common agenda with a truly global and diverse outlook — it’s the only way industries can prosper and adapt to changing environments. Consequently,vague generalisations about splits within NASSCOM are basically terribly naive. We expect divergent views from our members. That’s how we make our debates richer and our views balanced! And this is what makes us stronger: that despite this,we tend to speak together for NASSCOM.

And this diversity is leveraged not only in India,but globally. Interestingly what many may view as competing country associations — Philippines,Israel,Egypt,etc — are viewed as partners for NASSCOM. We have never shied away from sharing best practices and expanding the market.

One would remember our critics crying themselves hoarse on the issue of NASSCOM being the big boys club. Today,start-ups and SMEs are our ambassadors — building programmes,suggesting initiatives and taking leadership. New activities always jostle for space initially but end up redefining and reconfiguring NASSCOM. Multinationals and captives leverage the association’s activities as much as do indigenous companies — and often say that they need associations like NASSCOM in other countries. All of this plays to NASSCOM’s ultimate agenda ,of creating an environment where Indian companies become global multinationals and India becomes the largest location for global MNCs outside of their home country.

The most critical role for an industry association is to shape policy without representing individual company agendas. I cannot think of any other association that gets as much respect from governments in India and around the world for the objective and unbiased nature of the facts and views that it presents. Its policy agenda spans a myriad issues including taxation,transfer pricing,government procurement,IP,broadband,copyright,etc. Some of these may not be relevant for some companies in the short term — but we all recognise their importance for the industry,and focus on sharing information and facts to make a strong case collectively.

At the same time,there is a focus on building leadership in areas that will influence the future. The Data Security Council of India,National Institute of Smart Governance (NISG),Cyber Labs,and the NASSCOM Foundation are institutions created by NASSCOM to build policy and best practices in data security,e-governance,cyber security and inclusive growth.

Most people would recall the 1998 vision set by NASSCOM — a $50 billion industry contributing to 4 per cent of India’s GDP,providing employment to 2.2 million people — a vision almost everyone considered unachievable. However,despite two global downturns,the industry has delivered on that promise,unleashing a multiplier impact on India’s economy and society. The 2020 vision is even more ambitious: creating a transformational agenda for India.

Just as companies are focused on addressing opportunities through new business models,it is interesting to be part of a core group that is reshaping the agenda for NASSCOM,one that will further the cause of R&D,innovation and inclusive growth and,in the process,enhance India’s leadership.

Questioning NASSCOM’s diversity is as naive as questioning the spirit of Indian diversity.

There writer,president & CEO,Genpact,is former chairman of NASSCOM