BackSoftware, hardware, electronics lobby bodies begin joint representations
The joint representations could play a significant role in increasing the size of IT industry, promoting entrepreneurship
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New Delhi: With the boundaries between software, hardware, electronics, services and products blurring, lobby bodies of the three have begun informly collaborating on issues of common interest, to push for the usage of information and communications technology, or ICT, across segments such as healthcare and education, and are working towards creating an ecosystem for start-ups.
Industry experts say this is the first time this is happening, and that this could play a significant role in increasing the size of the $118 billion IT industry and promoting entrepreneurship.
As a first step, software lobby body Nasscom, and hardware lobby body, the Manufacturers’ Association for Information Technology (MAIT), have begun talking with other electronics and consumer appliances bodies to create a common platform to push for common agendas that affect their respective industries.
For ICT to make a big impact in sectors such as health and education, Nasscom is looking at a solution involving a combination of software and hardware, R. Chandrashekhar, Nasscom’s president said.
“Taking advantage of technology across sectors is essential to bring about the agenda that the BJP (Bharatiya Janata Party) has charted out. The industry is also focusing on ICT now, which has led to the growth in start-ups in hardware and products," he added.
The initial focus of this collaboration is healthcare, Chandrashekhar, explained. “Once we get this moving, we will look education and areas of financial inclusion."
The collaboration is also aimed at creating an ecosystem for start-ups.
“Enablers for a software start-up are not different from that of a hardware start-up; 80% of the needs of innovators and start-ups in both the sectors are common such as making sure that regulatory bodies enable them to quickly set up and grow," Chandrashekhar said.
He added that a dialogue with the hardware industry will help in “enabling such talent and financing innovation and capability...because the nature of the funding is changing".
Hardware industry lobbies, on their part, admit that working in silos hasn’t helped their cause, as is evident in the case of pushing, in vain, for the reversal of the inverted duty structure that has plagued domestic electronic manufacturers for at least the last eight years.
“We have to work not in silos but on a common platform. The talk to create such a platform is at a very nascent stage," said Anwar Shirpurwala, MAIT executive director. “Being relevant to the industry is a challenge. There is no sense in driving the agenda by itself. This marriage (between hardware and software bodies) will benefit both the parties," he added.
Pointing out some common areas to work on, such as managing e-waste, and listing out pre-budget recommendations, Shirpurwala said he is planning to bring associations including ELCINA (Electronic Industries Association of India), IESA (India Electronics and Semiconductor association) and CEAMA (Consumer Electronics and Appliances Manufacturers Association) along with Nasscom, “to address the broader issues of ICT". Ashok Chandak, chairman of IESA confirmed that hardware industry lobbies “are cooperating with other bodies because major issues including GST (goods and services tax), logistics and disability factors like inverted duty structure remain same".
“The government also prefers this approach (of collaboration between different bodies), as it is better than working in silos. Informally, we are cooperating with all these bodies though we haven’t made any formal forum yet," he said.
The Department of Electronics and Information Technology (Deity), too, is keen on looking at the common issues of software and hardware industry, rather than addressing the industry bodies independently as it gears itself for setting up 100-day agenda, the list of priority issues that it would take up in first 100 days in office, as demanded by Prime Minister Narendra Modi last month.
“They (hardware and software bodies) need to come up with joint proposals to be more effective (as there are many common issues), though we haven’t received any such proposal yet," said R.S. Sharma, secretary, Deity.
Industry experts think the collaboration could work.
“It is absolutely important in today’s time for the IT industry to work together because the boundaries between hardware, software, services and products are completely eroding," said Akhilesh Tuteja, head, IT advisory at KPMG India. He explained that when a person buys a mobile, he gets the hardware along with the software (operating system) unlike the past “when one would buy a computer from IBM, operating system from Microsoft and applications from SAP".
“You don’t buy stuff separately now," he said.
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