The Hindu Business Line : Software exports seen at $45 b this fiscal

Hyderabad, March 19 Computer software exports for the year 2007-2008 will be lower by about 6 per cent at $45 billion (about Rs 1,80,000 crore) as against initial projections of $48 billion, according to Electronics and Computer Software Export Promotion Council (ESC).

It is now estimated that the overall growth would be about 33 per cent in dollar terms and 23 per cent in rupee terms for the year as per latest data. Last fiscal ended March 31, 2007, computer software exports were at $37.25 billion.

The Chairman of ESC, Mr Sanjiv Narayan, said that the steady appreciation of rupee in terms of dollar and other major currencies for the last 15-16 months had adversely affected the rupee realisation from exports.

“Our data compiled from various IT exports indicate that the fall in rupee realisation from exports was to the extent of 12 to 15 per cent. This has taken place at a time when the real estate prices - rentals and property -are skyrocketing and human resource costs going up due to wage inflation,” he said.

Indiasoft 2008

ESC officials were in Hyderabad to announce Indiasoft 2008, a mega IT networking event that coincides with three-day IT Summit being hosted in Hyderabad. A detailed report on the sector is to be released during the Summit.

Mr Narayan said what was significant was that the rise of infrastructure and wages was being felt in tier two and three cities too. Higher interest rates ruling now are making cost of finances dearer, increasing the transaction cost.

Incubation centre

The Executive Director of ESC, Mr. D.K. Sareen, said that the focus of Indiasoft is to help IT industry players address emerging markets and serve as a platform for networking.

Last year, the event generated business of about Rs 2,000 crore and this year, it is likely to be more. As part of ESC initiatives to boost the small and medium sized IT companies, the first incubation centre in being established in Maryland in April 2008 with an investment of $ 2 million. It is proposed to provide facility for about 20 Indian companies, who would get direct access to the US market.

“Based on the success of this centre, we may consider two more-- one each in France and Germany. Alongside, we are also impressing upon members of ESC (now at 2,300 companies), to look at markets in Latin America, France, Spain, Asian countries and Japan,” Mr Sareen said.

For Japan, ESC is launching a portal that would provide a single point interface along with people with Japanese language skills.

Minimal difference

Asked about slightly different numbers coming from Nasscom, Mr Sareen said “overall the difference will be very minimal.”

At least 10 companies have chosen Indiasoft as a platform to launch their products. Significantly, they also get to interact with representatives from over 40 countries who are set to take part in the event.

Datawind, a Canadian company, is set to launch what it claimed to be world’s fastest and a versatile personal digital assistant.

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