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Since 1st March, 1999
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Nasscom lists areas of growth

Mumbai, Feb. 12: The National Association for Software and Service Companies (Nasscom) today said that new service lines would be the key drivers of growth in IT services (ITS), IT-enabled services (ITES) and business process outsourcing (BPO) sectors in 2003.

Nasscom has identified new service lines, including engineering, research and development (R&D), logistics and sales as catalysts of growth, Nasscom president Kiran Karnik said here.

The Indian industry was only able to tap about 2 per cent of the global IT services industry, and tapping the new service lines would improve the sectors growth to 4.8 per cent by 2008, he said at the Nasscom 2003 seminar.

Meanwhile, Phaneesh Murthy, the man who left Infosys to promote Primentor, today asked companies jumping on to the IT-enabled services—BPO bandwagon to desist from relying entirely on labour arbitrage and instead concentrate on efficiencies of scale, global delivery and process automation.

Murthy pointed out that Indian companies should also look into social issues relating to outsourcing. The ‘social cost’ of outsourcing to an Indian company in a developed nation often involves layoffs, leading to negative publicity and questions raised as to the necessity of such a move.

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