We will overcome: Dewang Mehta

CHENNAI, MARCH 17. Security comes in different forms. For the Indian software exports industry, its very small size is a blessing at a time when the U.S. economy is going through a slowdown.

``We are still very small'', says Mr. Dewang Mehta, President, National Association of Software and Services Companies, who is optimistic that India stands to gain from the turnabout in the performance of the U.S. economy. Quelling fears of a major slide, Mr. Mehta feels, to the contrary, that the projections for software exports are on target.

Mr. Mehta's confidence rings clear in his telephone conversation with The Hindu from his office in New Delhi. ``There has been no slowdown'' he said, backing up his statement with the performance figures for January and February. Confidently he adds, ``We might even marginally exceed our target.'' The country's apex industry body has also initiated steps - a weekly watch report and a Special Cell of Exports - to re-assure software exporters and help them in tiding over the present difficulties.

India had 185 Fortune 500 clients last year. The Nasscom had already swung into action and of the 90 of these companies contacted, 75 had indicated continued increase in outsourcing, while 10 had indicated decrease and the remaining were unable to commit their decisions.

That challenges are ahead is a fact well recognised. For the industry as a whole as well as for individual firms, during the months ahead. ``Some companies will be hit,'' he concedes, but adds convincingly the growth potential is there. New clients such as DuPont hiring Indian houses, he points out, is the kind of opportunities that lie in the months ahead.

The soundest cause for Mr. Mehta's confidence is that nearly 56 per cent of the country's software exports are for either maintenance (20 per cent) or for financial services (36 per cent), which cannot be discontinued. Moreover, there is also the substantial diversification of export markets that has taken place since 1991. From a paltry three per cent of exports to Europe a decade ago, India now exports 23 per cent, he points out. And, there are new markets such as Japan as well.

At the end of the day, however, there is the reality that the U.S. economic slowdown will put to test the ability of Indian software exporters. It is, as Mr. Mehta aptly sums up, a situation in which the mature and strong players will win.

VSS

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