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IT sector may face tough challenge

Special Correspondent

NASSCOM president cautions about likely competition from emerging players outside

JAIPUR: NASSCOM president Kiran Karnik has cautioned the IT industry in the country about likely competition from emerging players outside. "At present even the nearest competitor is far behind but that does not mean that they cannot outrun us in future,'' he said.

India is leading the pack with a projected growth rate -- which has been steady for the past one decade at 30-32 per cent -- in the sector but there is no place for complacency, Mr.Karnik observed.

"The cities and States in India are now competing among themselves to host business process outsourcing (BPO) centres. However, it is not necessary that they need to come here only. There are others like China, the countries in East Europe, Vietnam, South Africa and the Philippines who can offer such services,'' Mr.Karnik said, talking to a group of media persons on Thursday.

Mr.Karnik, who was here in connection with a seminar on "Rajasthan: An IT destination'', organised by NASSCOM (National Association of Software & Service Companies), said it was time the agencies in the IT sector explored new avenues offering higher, more advanced and more sophisticated services in the category of KPO (Knowledge Process Outsourcing).

"IT is not BPO alone. There is a growing need for these services at global level which, studies indicate, would grow from USD 1.2 billion in 2003 to USD 15.5 billion in 2010,'' he informed.

The emerging areas in KPO services are basic data search, integration and management, market research and competitive intelligence. They also include equity research, actuarial analytics and data modeling, engineering design, animation and stimulation, medical content, remote education and publishing, R&D, biotech and pharmaceuticals, Mr.Karnik noted.

"Even BPO service is not so simple as many make it out to be. Even call centres need high skills of communication, especially if they are dealing with technical aspects,'' Mr.Karnik said.

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