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Cut Out Middle Players While Buying Software For Olympics, Requests PM
Prime Minister Atal Bihari Vajpayee has requested China to source its software
requirements for the 2008 Olympics in Beijing directly from India without the
involvement of any third party multinational company. The total estimated requirement could go up to $300 million (Rs 1,420
crore).
The PM was delivering a keynote address at a business meet in Shanghai on Thursday. National Association of Software and Services Companies (Nasscom) president Kiran Karnik told FE, “The Olympics are a highly technology driven event. The total information technology (IT) spend could be anywhere between $500 million (Rs 2,400 crore) to $1 billion (Rs 4,800 crore). Of this the software component could be 30 per cent.”
“The PM suggested that such software could be sourced from Indian companies. He said that while contracts for the same are expected to be given to multinational companies, lot of it is sub-contracted to Indian firms. The PM said China could save a lot of money if the middleman is cut out and contracts given directly to Indian companies,” added Mr Karnik.
Confederation of Indian Industry director general Tarun Das told FE, “The address was attended by an audience of 300-400 people representing IT companies from all over China. What came out were the opportunities arising out of bringing together Chinese expertise in hardware and ours in software. Chinese companies expressed a strong desire to work with Indian companies.” Elaborating on the possible areas of cooperation, Mr Karnik added, “There are opportunities in embedded software for chips in consumer durables. While China has excellent chip manufacturing capabilities, Indian design skills can be used by them.”
“As the banking and financial services sector opens up further in China, India’s software expertise in this area can be used by them. Companies like Aptech and NIIT, already in China, can also expand their IT education activities in China,” he added.
Meanwhile, minister of telecommunications, information technology and disinvestment Arun Shourie inaugurated CII’s east Asia office in Shanghai on Thursday. Coinciding with the opening of the office, CII has also set up the “India Club” to boost small and medium enterprises cooperation.
It aims to provide a platform for enhancing trade and investment, and accentuating strategic partnerships between Indian and Chinese businesses.
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