The Hindu Business Line : Five more cos to set up shop in Finland soon

FIVE more Indian software companies will be setting up operations in Finland soon, adding to an equal number - including Wipro and TCS - that have been there in the last two years.

Offering its strategic location to tap the North European market and the potential of its software market worth $5.1 billion, Finland is looking to forge partnership with Indian companies to enhance its strength in hardware in different fields, including telecom, medical electronics and meteorological sectors, said Ms Sirkka Aura, CEO of Invest in Finland (InF).

InF is a catalyst organisation funded by the Ministry of Trade and Industry for attracting foreign direct investment in Finland.

Of the total software market, less than one per cent has been tapped so far, she added.

"The partnership with Indian companies could open up vistas for business to third countries. Finland is a gateway to Russia, Baltic and Scandinavian countries, besides the EU countries."

According to her, Finland offers investment aid to firms, especially SMEs. The companies are also eligible for transport aid and energy subsidies.

The country, which accords priority to the R&D sector, also provides grants and risk loans to the sector, which helps develop international competitive products or services.

Corporate tax is 26 per cent. All formalities for setting up operations take an average 21 days.

Mr Taneli Saari, Director (Location Services), InF, said: "Finland is looking at partnerships with Indian firms, more than outsourcing. Outsourcing is sub-contracting and that has many problems, including that of not being permanent."

Finland has analysed 200 Indian companies and identified about 50 that could do business with it, he added.

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