Bangalore: Indian and Russian information technology companies (IT) could profitably collaborate to take on US software companies by jointly offering solutions to the global computer services industry, a Russian software industry lobbyist said.
“They (Indian firms) can set up development centres and get high-end talent, as our scientific resources are the best in the world. We may not have the numbers like you do but we have high-end talent available,” Valentin Makarov, president of Russoft Association, a lobby group of software firms in Russia, Byelorussia and Ukraine, told Mint.
Indian companies with expertise and skills in project management could join hands with Russian companies that are good at developing customized technology solutions, Makarov said.
Russoft estimates Russian IT companies exported software services worth around $3.35 billion (Rs16,716 crore now) in 2008. India’s National Association of Software and Service Companies, or Nasscom, the main lobby group of the Indian IT industry, expects local firms to export computer services worth a record $47 billion in the fiscal ending 31 March.
Makarov pointed out that software for banking, financial services and insurance, which contributed the largest (about 40%) chunk to Indian IT export revenues, was in trouble in both in the US and UK markets.
“Our traditional strengths in oil, natural gas and utilities continue to perform strongly. While the US and UK’s finance segment has been hit by at least 50%, commodities have been hit only by 15%,” he said. “This provides you (Indian IT firms) opportunity to address the Russian market.”
“With clear indications that the traditional export markets which Indian IT targeted likely to grow at a slower pace, we will have to examine newer geographies to sustain the industry’s growth rate,” Nasscom chairman Ganesh Natarajan said.
Tata Consultancy Services Ltd, India’s largest IT export company by revenue, had announced in 2008 that it was setting up a sales and marketing office in Russia and would eventually have a development centre to address markets in Russia and the Commonwealth of Independent States.
Makarov said he would welcome more Indian companies to explore opportunities to join hands with members of Russoft.
He said Russia has been an old friend of India. “Our relationship has withstood the test of time. Why should we allow only US companies to dominate the global IT landscape? If we join hands, we could have a win-win relationship.”