Nasscom To Open Office In Silicon Valley

Nasscom projects US $ 3.9 billion software exports during 1999-2000   Nasscom forecasts strong post-Y2K software exports For the post Y2K economy, Nasscom (India's National Association of Software and Service Companies) has evolved a strategy for increasing India's software exports, around the globe. Nasscom announced on september 30 that its post-Y2K software exports plans for giving further thrust to globalization efforts of India's software companies. These efforts are being initially focussed in USA and the European markets. During 1998-99, out of India's total software exports of Rs. 10,940 crore (US $ 2.6 billion), software exports to US were Rs. 6,260 crore (US $ 1.5 billion) and exports to Europe were Rs. 2,570 crore (US $ 590 million). These two markets constituted almost 81% of India's software exports.

According to Nasscom's study, post-Y2K scenario may bring even more software exports opportunities than the revenues generated by Indian software industry by providing Y2K (Year 2000 date problem) solutions.

Mr. Dewang Mehta, President, NASSCOM said, "According to Nasscom's estimates, India's software exports during 1999-2000 are expected to gross Rs. 17,200 crore or US $ 3.9 billion. Out of this, software exports to USA may even cross Rs. 10,000 crore or US $ 2.3 billion."

"It is very evident that US will remain the largest market for Indian software exports for many years to come." said Mr. Mehta. Nasscom has identified a number of opportunities areas and initiatives that are expected to provide further thrust to Indian software industry's efforts exports to USA, establish resources for stronger client support and move up the value chain. 115,000 H1-B VISAS FROM 1st OCTOBER 1999 Mr. Dewang Mehta said, "Beginning 1 October 1999, a new global annual quota of 1,15,000 H1-B visas for USA would commence. This will ease the visa shortage felt in last few months, by Indian software professionals." Nasscom has welcomed the increase in H1-B visa cap.

However, as per US regulations, this quota is expected to revert back to 65,000 H1-B from 1 October 2001. This may have adverse impact on movement of software professionals travelling to clients site in USA during that year onwards." Mr. Mehta said, "We have already started our lobby work at Capitol Hill to permanently increase annual H1-B visa quota to 150,000." Increasing the visa cap has also been demand of US companies and even associations like ITAA (Information Technology Association of America). Mr. Mehta said, "We are also lobbying for removal of non-tariff trade barriers like double payment of social security and imposition of wage parity."

Mr. Dewang Mehta in a major announcement today revealed Nasscoms plan to globalize its presence. Mr. Mehta said, "Nasscom has decided to establish its offices in various parts of the world. To start with, we plan to open our office in the Silicon Valley of USA." He further added, "This is in keeping with our plans to rapidly expand our geographical reach and facilitate our member companies efforts to have ready access to market intelligence, prospective partners and also assisting them in establishing customer base."

According to Mr. Mehta, "Nasscom's U.S. office would offer incubation, marketing, business contacts, networking, lobbying and venture capital information services."

Mr. Mehta added, "We realize that not all companies can afford to station their personnel in USA. However, with our US presence, we also plan to provide incubation facilities to young companies in India by facilitating their access to suitable investors and business partners."

The Nasscom office in USA is expected to become a nerve centre and meeting point between Indian software, internet, E-Commerce companies with US clients, venture capitalists, academicians, angel investors and others. Mr. Dewang Mehta said, "Our decision to open office in USA is part of our strategy to bring Indian software companies closer to US investors, clients, venture capitalists etc." He added, "This is also part of our strategy to at least put 30 more Indian companies on overseas stock exchanges in next 5 years."

Mr. Dewang Mehta said, "One of the important function of Nasscom's U.S. office would be to provide incubation services to Indian companies." Nasscom plans to initiate at least 30 incubators in the first year of U.S. office.

Nasscom has already signed a Memorandum of Understanding (MoU) with TiE (The Indus Entrepreneurs) to help Indian IT services, internet and other companies with innovative ideas have easy access to venture capital and organizational guidance. The members of TiE group include Mr. Kanwal Rekhi; Mr. Sabeer Bhatia, Founder of Hotmail; Mr. Rajat Gupta, Managing Director, McKinsey & Co.; Mr. Suhas Patil, Founder and Chairman of Cirrus Logic; Mr. Vinod Khosla, Founder and Former Chairman of Cerent Technologies, recently bought over by Cisco in the largest ever start-up acquisition deal.

Interactive Integration Services

Mr. Dewang Mehta also revealed a number of post-Y2K opportunity areas for Indian software houses. Globally, Interactive Integration services is emerging as the next major opportunity to software services vendors. Mr. Dewang Mehta said, "Indian software houses are well positioned to offer state-of-the-art Interactive Integration Services as they are amongst the best in the world for providing solutions for legacy systems as well topping it up with web technologies." Interactive Integration services are portfolio services offerings consisting of business consulting, IT skills and creative / cognitive skills to offer one stop E-Commerce solutions for global corporations.

According to Nasscom, Interactive Integration services have emerged like made to order opportunity for Indian software industry as it seeks to leverage the existing strengths as well as providing ample opportunity to offer strategic business consulting expertise. This offers good opportunities to Indian software houses to move further up the value chain. "As per a Nasscom study, Interactive Integration services are expected to constitute for more than US $ 400 million of revenues out of total estimated software exports of US $ 3.9 billion in 1999-2000." added Mr. Mehta.

I. T. Enabled Services

Mr. Mehta said, "While Indian software companies continue their consolidation in existing areas, IT Enabled Services are the next major wave for India. This would address imperatives of quality earnings as well as volume employment opportunities." IT Enabled Services include gamut of IT based decision and business support services such as Call Centre, Backoffice Operation, Data Processing, Business Process Outsourcing, HR Accounting etc.

Mr. Mehta said, "As per our estimates, IT Enabled Services are expected to contribute as much US $ 10 billion of export revenues out of estimated annual Indian software export revenues of US $ 50 billion by the year 2008." Nasscom has commissioned McKinsey & Co. to build a strategy so that India is well positioned to emerge as preferred global hub for IT Enabled Services. Mr. Dewang Mehta said, "Nasscom is organizing a delegation of CEOs of Indian I. T. Enabled Services providers to USA during November 1999 and March 2000. The delegation is to participate in business seminars New York and San Francisco besides meeting state officials and investors."

Nasscom's Ideas Tour

Besides identifying specific market related opportunities, Nasscom has also identified promotion of entrepreneurship as a harbinger of innovation and continued growth of Indian software industry. Mr. Mehta said, "Indian software industry has been recognized as a globally competitive model of a knowledge based industry and our edge lies in large and highly intelligent manpower." Mr. Dewang Mehta added, "We now need to take lead in innovations in global IT services industry and creating original products. For this, we need to encourage entrepreneurs having ideas that have high commercial potential and address futuristic markets." In order to facilitate their ideas see light of the day and become a commercial success, these entrepreneurs need to partner with like minded venture capitalists, technology partners and business partners so that a commercially viable win-win partnership can be established.

Mr. Mehta announced that, "We plan to organize Nasscom IDEAS tour in February 2000 wherein we plan to take a delegation of Indian software, E-Commerce entrepreneurs and CEOs of companies to USA and facilitate one-to-one business interactions with venture capitalists and other potential stakeholders."

The above steps are being initiated as USA's venture capital base is considered to amongst the most mature in the world. With strong networking and access to business resources in USA, homegrown companies can realize their true potential.

Exports To U.S.A.

According to Nasscom, India's software exports to USA has been steadily increasing. IndiaÕs software exports to USA in 1990-91 was a mere US $ 70 million. It increased to US $ 1.5 billion in 1998-99 and is expected to be US $ 2.3 billion during 1999-2000. Mr. Dewang Mehta said, "Indian software exports to USA are projected to reach an annual US $ 5 billion in 2002 as against total annual software exports of US $ 8.6 billion during the same year."

NASSCOM is the apex body of computer software and services driven IT industry in India. NASSCOM is a not-for-profit organization consisting of more than 545 member companies, which includes both multinationals and home grown companies. It represents more than 95% of revenues of the software and services industry in India. NASSCOM also organizes and coordinates Indian participation in the overseas trade fairs and exhibitions, besides conducting conferences and exhibitions in India. NASSCOM acts as a consultative body to assist central and state governments in making IT friendly policies. Nasscom is internationally represented at WITSA (World Information Technology Services Alliance) and ASOCIO (Asian Ocean Computing Industry Organization). Website is www.nasscom.org. Funschool.com signs character license agreement with timeless toys Funschool.com, the top educational game site on the Internet, announced today that they have signed a character license agreement with Timeless Toys. As per industry sources, this is the first time that a character has been originally created for the Internet and licensed for the development of toys and games. Timeless Toys will develop licensed toys based upon funschool.com's character Browser the Bus(TM),'' the school bus that greets visitors to the site.We are very excited about using Browser the Bus(TM) as an ambassador for funschool.com and our message that learning can be fun,'' says Sashi Boinapalli, CEO of funschool.com.We have wanted to do a project like this for a long time, says Harold A. Nizamian, president and CEO of Timeless Toys. funschool.com presented the right opportunity at the right time.The first toy to be developed will be a plush toy version of the yellow school bus Browser the Bus(TM) that will beep when squeezed. There are plans to develop soft lunch boxes and other items with the funschool.com character, Browser the Bus(TM).'' Plans to unveil the new funschool.com products are set for the National School Supply and Equipment Association Trade Show and Educational Conference to be held on November 4-6 in Orlando, FL. Toys are expected to be on store shelves by Spring 2000. A prototype is under production and will be available to the media October 15, 1999. Funschool.com is a privately held Internet company and headquartered in Mountain View, Calif. It is the developer and creator of the fastest-growing library of Java-based interactive activities for children in preschool though sixth grade. funschool.com's primary mission is to teach. All educational games are curriculum-based and created especially for children with their education in mind.

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