The Hindu Business Line : Nasscom opens Chennai office

CHENNAI is emerging as a major information technology destination in the country and it requires a mass transportation system to carry thousands of IT employees, said Mr Kiran Karnik, President, Nasscom (National Association of Software and Service Companies).

For instance, the IT corridor on the Old Mahabalipuram Road, along which a number of major IT companies have their development centres, requires a mass transportation system. It has to be done quickly before demand outstrips supply, he said.

"It is not enough to run hundreds of vans and buses to transport people. You need to have a train that carries a couple of thousands of people at a time. If infrastructure is not developed, people would look at alternative locations," he told newspersons.

Nasscom today announced the opening of its Chennai office. This is part of its expansion plans to establish local presence in major cities across the country. Ms Sheila Gandhi would spearhead Nasscom's activities in the region, Mr Karnik said. Nasscom has regional offices in Mumbai, Bangalore and Hyderabad.

"We are happy with the State Government's initiative in IT and its IT policy," he said. The Chennai office will facilitate interaction among the Government and the industry, he said.

In a press release, Mr Karnik said Nasscom has around 100 members in Tamil Nadu. Software exports from the State crossed Rs 8,000 crore in 2003-04, making it the second biggest software exporting State in the country after Karnataka.

A major feature of the State's IT growth was the emergency of tier-II cities such as Coimbatore and Madurai as exporters of IT-enabled services and business process outsourcing services, he said.

Nasscom plans to establish an office in the US, the biggest market for Indian software, next year. "This is a priority for us," Mr Karnik said. Currently, Nasscom is represented in the US through its agent Hill and Knowlton, which acts a media and public relations agency, he said.

Referring to the recent hike in sales tax on personal computers, from 5.75 per cent to 13.8 per cent, by the Karnataka Government, Mr Karnik said this would inhibit the growth of IT in the State, when the domestic market for software application is picking up. This move has affected revenue from IT for the State Government in the first quarter of the current fiscal.

On the one side, the Karnataka Government is investing about Rs 400 crore on infrastructure development to help the IT sector; on the other side it has increased sales tax for hardware. This sends contradicting signal to the IT industry, he said.

Concern over H1B visa cap

CHANGES for raising H1B visa (temporary employment in the US) cap from the present 65,000 may come up in January or February next year, when the new administration there takes charge, said Mr Kiran Karnik, President, Nasscom. There is an urgent need to raise H1B visa cap, he said.

The present cap will not affect the large players at the macro level (revenues). However, new and start-up firms looking at US for projects will be affected. "This is a major concern for us," he said.

On top of Nasscom's agenda is cyber security, including data piracy, network security and piracy itself, according to Mr Karnik.

"It is like a safe vault. If data is in India, it is safer than with you (clients abroad). We have established a name in software quality. We want to now convey the same message (to clients abroad) regarding IT security and data security, and say that India is the best place," he told presspersons.

More Stories on : Industry Associations | Software | Tamil Nadu

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