Communications and IT Minister A Raja today assured the Indian IT industry that his department was doing its best to convince the government that the Software Technology Parks of India (STPI) scheme should be extended beyond the deadline of 2009.Addressing an over 1,600-strong audience on the first day of the three-day Nasscom India Leadership Forum 2008 Summit here, Raja said: "Based on the feedback of the Indian IT industry, we are looking into the issue of extending the STPI scheme on a priority basis. We feel there are many start-ups and small- and medium-enterprises for whom the special economic zone (SEZ) may not be a viable option." The assurance comes against the backdrop of the US slowdown and rupee appreciation against the US dollar, which has eaten into the net margins of the IT industry.Raja also emphasised the need for IT firms to go in tier-II and tier-III cities. "This will not only help address the talent issue but also create enough employment opportunity." He was also of the opinion that the IT industry should take initiative in making India as secure destination for BPOs. "We will be strengthening the IT Act 2000 based on the feedback we've got from the industy. Besides, we also feel that there is a need to launch many more schemes with the Ministry of HRD to create better employable talent pool," he added.Som Mittal, president, Nasscom, said: "We appreciate the efforts of the government to set up SEZs and larger firms can take advantage of tax benefits. IT firms are also going into tier-II and tier-III cities where having the STPI scheme will help set up businesses and for inclusive growth."He also said that Nasscom is committing to go Green and launch initiatives accordingly.While admitting to pressures from the supply side, the rupee getting stronger, besides talent shortage and uncertainty about the global environment, Lakshmi Narayanan, chairman, Nasscom, and vice chairman, Cognizant, felt there is still enough opportunity to grow. "These pressures will continue. The industry will have to operate at new performance levels. Those who cannot keep pace will be driven out," he added. Narayanan also urged the government to increase the budget for e-governance projects to create a new domestic market opportunity. He also urged the industry to create partnership and increase investment in training the talent pool.Former President A P J Abdul Kalam, who addressed a special session at the summit, said: "Don't be a software powerhouse, be a knowledge services powerhouse. While the outlook looks positive, I find the industry yet to create an environment essential for targeting 20% of IT spending globally from the current 4%."
