Monday,
April 21, 2003 |
|
Feature |
|
Diversify, suggests
UN report
TERMING
the Indian IT sector a success story, a UN survey released recently said
local software companies should diversify export markets to ensure a
sustainable growth in the long-term. "The performance of the Indian
IT industry depends largely on global economic conditions, particularly
the US market," said the report by the Economic and Social Survey
of Asia and the Pacific (ESCAP). "This became evident in 2001 when
a slowdown in the US economy had an adverse impact on the Indian IT
industry. Diversification of the market for Indian IT exports could
reduce the industry’s external vulnerabilities," it said.
The survey noted some
moves have already been made to increase exports to Germany, France and
Italy in Europe, Singapore, South Korea and Malaysia in Asia, and Chile,
Mexico, Uruguay and Brazil in South America. "The variety of IT
services would also be expanded," it said, adding increased
attention is being given to business process outsourcing sector with
overseas clients engaging Indian firms to manage their critical
operations and accounts.
According to the survey,
IT is of increasing importance to the Indian economy, in terms of both
export revenue and employment generation. "The highly dynamic IT
industry grew at an average annual rate exceeding 50 per cent from 1991
until 2001," it said, adding the industry created 92,000 new jobs
and provided 2,50,000 persons with indirect employment during the
period.
The survey said the Indian
government had played an important role in providing "critical
inputs and removing major bottlenecks" from the path of software
industry to help it achieve the export target of $50 billion. —
IANS
|