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| The association apprehends that such a move will hit the local computer industry badly turning many of them sick. |
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| According to sources, the IT ministry of the state government intends to appoint NICSI as the nodal agency for evaluation of tender, procurement and installation of computers in various departments for which the Central government is providing the money. |
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| Earlier this work was being done by state-based nodal agencies like Orissa Computer Application Centre (OCAC), Idcol Software Ltd (ISL) and Infrastructure Development Corporation (IDCO), all state-owned companies. |
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| When state based nodal agencies were entrusted with the job of computerization of government departments, they usually procured all their hardware from the local firms benefiting the entrepreneurs here, pointed out Soubhagya Routray, secretary, ITAO. |
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| He said, if NICSI is appointed as the nodal agency, it being a Delhi based organization will procure all the hardware from there killing the local IT entrepreneurs in the process. |
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| Moreover, the state exchequer will lose about Rs 2.4 crore towards collection of sales tax as all the wares will be procured from outside, he added. |
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| Sanjeev Nayak, spokesman for ITAO, pointed out that in Andhra Pradesh, which spends over Rs 300 crore for computerization of government departments, only local nodal agencies and vendors are engaged in the job on the direction of the chief minister as a protection to the state-based IT industry. |
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| Nayak further pointed out that NICSI in Orissa does not have adequate manpower or infrastructure to undertake the role of nodal agency as the organization being manned by only one person in the state, it will be virtually impossible for it to provide after execution service to the clients. |
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| Again when state-based nodal agencies like OCAC, ISL and IDCO have successfully implemented such projects like preparation of voters' ID card, computerization of the state secretariat and school education, what is the necessity of appointing NICSI for the similar jobs now, he wondered. |
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| Sources said, NICSI has already been appointed as the nodal agency for evaluation of tenders, procurement and installation of computers in several government departments including land record computerization programme of the revenue department. |
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| The total turnover of local based small and medium IT firms is estimated about Rs 100 crore per annum. About 60 per cent of this business comes from government and PSU sector while the SOHO segment and private sector accounts for the rest 40 per cent. |
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| In this backdrop, even if NICSI is appointed as the nodal agency, care should be taken for procurement of hardware from within the state-based IT firms, which together employ about 2,000 IT professionals, sources said. |
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