The Hindu Business Line : IT growth sustainable, says Premji

INDIA is marching ahead in the global race, thanks to the success of information technology, which is being replicated by many other industries in India, according to Mr Azim H. Premji, Chairman and Managing Director of Wipro.

Delivering the opening address here as a part of the Nasscom 2005, he said that investment in industries as diverse as pharmaceutical research, biotechnology, auto ancillaries, hospitality and textiles are happening at a brisk pace, almost suggesting that it was a "dream come true".

Highlighting the potential of the Indian IT and IT-enabled services industry, Mr Premji said that Indian IT exports can grow to 7 per cent of India's GDP by 2008, up from 3.3 per cent in 2004.

In his view, cultural enablers will hold the key to India's sustained growth. Offering some interesting `cultural' insights, which have aided Indian companies in competing with the rest of the world, he said that Indian society had recognised the importance of knowledge since ancient times.

Given the educational rigour that is ingrained in the system, India is adept at filtering talent. "Tolerance for ambiguity" in the Indian joint family system was another cultural trait working in India's favour.

"Tolerance for diverse opinions has been in the Indian social fabric, helping build the spirit of accommodation in organisations," he said.

Also, India's educational set-up with its unique three-language formula make for a natural adaptation from school to work life. Stressing on the importance of quality processes, Mr Premji said that the IT industry had shown that it can pursue rigorous quality standards such as SEI-CMM certification.

"An important cause of success of these initiatives has been the commitment from top management in process initiatives," he said.

He also emphasised the need for business leadership to be transformational, as opposed to transactional. "Transformational leaders identify themselves as change agents."

Companies must look at the bigger picture on prioritising investments for customers. "Many companies may be missing one final piece of technology. If IT companies can help the customer find the missing the link, it could unleash enormous benefits for both," he said.

In his keynote address on "Mastering the Challenges to Global Business", Dr Heinrich V. Pierer, Chairman of the Supervisory Board, Siemens AG, said that "India is on the move" and needs to learn from the challenges posed by globalisation. Outlining their century-old lineage and operating in more than 190 countries, he said that their sustainability has been powered by five elements: globality, innovation, financial solidity, people and corporate social responsibility.

Mr Stephen Green, Chief Executive, HSBC Holdings Plc, in his keynote address, comparing India and China, highlighted that India attracted over $ 3 billion in foreign direct investment last year, though it is often compared unfavourably to China. He pointed out that in the latest AT Kearney FDI ConfidenceIndex, India is ranked as the third most attractive FDI destination in the world, behind China and the US, but two years ago, India was ranked 15th.

Getting the infrastructure up and running and finding employment for new generation of workers will be its biggest challenge, he added.

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