The Hindu Business Line : India eyeing more space for IT in EU

THERE is some urgency about boosting Indian information technology exports to the European Union, which currently accounts for some $ 3 billion Indian IT exports, out of global total of $12 billion.

The recently appointed Indian Ambassador to the European Union, Mr Rajendra Abhyankar, hosted a seminar of Indian IT personnel based in Belgium to discuss ways and means of promoting more IT exports. The participants also exchanged ideas on what the Indian Government could do to facilitate promotion of Indian software exports, based on parameters of current EU-India dialogue, under which the European Union has authorised funds to promote partnerships and collaborations between Indian and European companies, essentially based on exchange of technology.

India appears to have a "technological clout" in this sector and it is now estimated that the European companies are currently outsourcing 31 per cent of their total IT collaboration contracts with overseas firms. It is not known what percentage of this volume goes India's way but, according to various participants at the seminar, Indian companies have an edge over other Asian competitions - "especially because of Indian versatility and intimacy with the use of the English language". It was also interesting to note that major European banking, insurance and trading companies — trading on global parameters — prefer to operate their systems in English language, although use of German and French on domestic parameters cannot be ruled out.

The presence of Indian IT community in major European capitals is expanding despite hordes of problems faced by Indian passport holders in acquiring visa and residential work permits. The problem exists in major European commercial capitals but it varies according to local regulations and "racial hostilities" as one participant put it.

Mr Abhyankar stated that when he went to San Francisco as India's Consul General in 2001, he witnessed the process of IT's `boom and bust' syndrome and would now endeavour to ensure that Indian communities in the European Union, like their counterparts in the US particularly in the Silicon Valley, would establish Indian silicon centres in various European capitals. Brussels could be a starting point as it is a headquarter of not only major pan-European companies but also many global multi-national North American companies which are trying to consolidate and expand their "pan-European presence".

The Indian companies first preference is obviously London but a number of technological firms are looking at various European options. The favourites are Brussels and Berlin.

Mr E.R. Rashmi of the Indian embassy acquainted seminar participants about various technical and financial options offered by the European Commission to encourage technological exchanges and possible collaborations between European and Indian companies.

Mr R.P. Agarwal, Deputy head of the Indian mission, responding to a question by Business Line, about how small and middle ranking firms could avail of the opportunities offered by Indian institutions, stated that Nasscom, export promotion councils and various financial institutions have been structured to encourage IT exports at all levels and wished there was "more awareness" about their activities.

Apart from major Indian IT companies operating at global level, the vast majority of small and middle size firms, owned and run by young entrepreneurs in their 30s and 40s, are also trying to break into export markets.

The Indian IT exports could reach $20-billion mark within a decade and the European Union can account for nearly half of its volume if the Indian companies put in more dedicated export efforts.