Nasscom sees turnaround for IT cos.

By Our Staff Reporter

BANGALORE, NOV. 24. The Indian information technology industry that has reeled under the impact of the U.S. economic slowdown can breathe easy, with the National Association of Software and Services Companies forecasting a turnaround for the sector by May-June next, and a 30 per cent growth rate.

The cause of the upturn has partly been attributed to the resurgence in the U.S. economy. Likelihood of increased consumer spending during the holiday season from December onwards, ``will spur the U.S. economy and have a spillover effect on the Indian IT industry," the Nasscom President, Mr. Kiran Karnik, said.

Mr. Karnik was addressing the Tech Summit organised by the Convergence Institute of Media, Management and Information Technology Studies, a division of the Technology Media Group in Bangalore today.

Eventhough the bottomlines of many Indian IT companies took a beating, strategies such as cost-cut and market diversification have helped firms weather the slowdown storm.

However, the crucial issue now involves the brand building of India Inc in new markets such as Europe and the Asia-Pacific while strengthening its domestic base. ``We have positioned ourselves as a low cost quantified provider of software services. India needs to reposition itself with three USPs of high productivity, low costs and large quantities, besides a renewed focus on development of software products with intellectual property," Mr. Karnik said.

Indian companies also need to hardsell the concept of `outsourcing' to the new markets while building the India Inc brand, he added.

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