We have heard many (most of the people using Vista OS) experiencing problems with running Graphics in C.
This is no more a trouble now. We have found the solution!
Please read it carefully and follow the instructions as below:
1. Start/Restart your computer and start hitting "F8 key" repeatedly (the speed of pressing the F8 key should be like double-click speed on mouse).
2. Hitting the F8 key will bring up a boot-option screen. Select "Safe mode with Command Prompt" and hit the Enter key.
3. Your computer will be now booted in Safe mode with Command Prompt. (Users having a password for startup should enter their passsword when required)
4. Now press "Alt + Enter" at the command prompt. This will take you to the full screen mode.
5. Goto the location/directory where your C is installed. For example C:\TC\BIN
6. Type "TC.EXE" at the command prompt. (C:\TC\BIN> TC.EXE)
Try running any of your C Graphics file now. (Example: filename.cpp or filename.c)
Graphics in C will work fine now!
If you liked this post or found it helpful, please say a little "thanks". You can email us at: mitsfet@gmail.com
Friday, November 7, 2008
Friday, September 5, 2008
Design and Analysis of Algorithms
//MAGIC SQUARE
#include<stdio.h>
#include<conio.h>
void main()
{
int sq[50][50],sum=0;
int n,i,j,k,l,key;
clrscr();
printf("\nEnter the size (odd no.) of magic square : ");
scanf("%d",&n);
if(!(n%2))
{
printf("\nNumber is even");
printf("\nTry again with an odd number");
getch();
return;
}
else
{
for(i=0; i<n; i++)
for(j=0; j<n; j++)
sq[i][j] = 0;
sq[0][(n-1)/2] = 1;
j = (n-1)/2;
for(key=2; key <= n*n; key++)
{
k = (i)?(i-1):(n-1);
l = (j)?(j-1):(n-1);
if(sq[k][l])
i = (i+1)%n;
else
{
i = k;
j = l;
}
sq[i][j] = key;
}
for(j=0; j<n; j++)
sum+=sq[0][j];
printf("\nCommon Sum = %d\n",sum);
printf("\nMAGIC SQUARE of %dx%d is:\n",n,n);
for(i=0; i<n; i++)
{
printf("\n");
for(j=0; j<n; j++)
printf("%d\t",sq[i][j]);
}
}
getch();
}
//MATRIX ADDITION
#include<stdio.h>
#include<conio.h>
void main()
{
int a[10][10],b[10][10],c[10][10];
int i, j, m, n;
clrscr();
printf("\nEnter the no. of rows and columns: ");
scanf("%d %d",&m,&n);
printf("\nEnter the elements of first matrix:\n");
for(i=0; i<m; i++)
for(j=0; j<n; j++)
scanf("%d",&a[i][j]);
printf("\nEnter the elements of second matrix:\n");
for(i=0; i<m; i++)
for(j=0; j<n; j++)
scanf("%d",&b[i][j]);
for(i=0; i<m; i++)
for(j=0; j<n; j++)
c[i][j] = a[i][j] + b[i][j];
printf("\nResultant matrix is:\n");
for(i=0; i<m; i++)
{
for(j=0; j<n; j++)
printf("%d\t",c[i][j]);
printf("\n");
}
getch();
}
//MATRIX MULTIPLICATION
#include<stdio.h>
#include<conio.h>
void main()
{
int a[10][10],b[10][10],c[10][10];
int i, j, k, m1, n1, m2, n2;
clrscr();
printf("\nEnter the rows and columns for matrix I: ");
scanf("%d %d",&m1,&n1);
printf("\nEnter the rows and columns for matrix II: ");
scanf("%d %d",&m2,&n2);
if(m1!=n2)
{
printf("\nMatrix Multiplication is not possible.");
printf("\n\tTry again!");
getch();
exit();
}
printf("\nEnter the elements of matrix I:\n");
for(i=0; i<m1; i++)
for(j=0; j<n1; j++)
scanf("%d",&a[i][j]);
printf("\nEnter the elements of matrix II:\n");
for(i=0; i<m2; i++)
for(j=0; j<n2; j++)
scanf("%d",&b[i][j]);
for(i=0; i<m1; i++)
for(j=0; j<n1; j++)
for(k=0; k<n2; k++)
c[i][j] += a[i][k] * b[k][j];
printf("\nResultant matrix is:\n");
for(i=0; i<m1; i++)
{
for(j=0; j<n2; j++)
printf("%d\t",c[i][j]);
printf("\n");
}
getch();
}
//EXPONENTIATE
#include<stdio.h>
#include<conio.h>
#include<math.h>
void exponentiate(float,int);
void main()
{
float x;
int n=0;
clrscr();
printf("\nEnter number(may be float) & its power(integer):");
scanf("%f %d",&x,&n);
exponentiate(x,n);
getch();
}
void exponentiate(float x,int n)
{
int m=n;
float z=x, power=1;
while(m>0)
{
while((m%2)==0)
{
m = floor(m/2);
z = z*z;
}
m = m-1;
power = power * z;
}
printf("\n%f ^ %d = %f",x,n,power);
}
//TO PRINT THE NTH TERM OF FIBONACCI SERIES
#include<stdio.h>
#include<conio.h>
void main()
{
int n=0;
clrscr();
printf("\nEnter the value of n: ");
scanf("%d",&n);
if(n<=1)
{
printf("\nThe nth term of fibonacci series is : %d",n);
}
else
{
float t1=0,t2=1,t3;
int i;
for(i=2; i<=n; i++)
{
t3 = t1 + t2;
t1=t2;
t2=t3;
}
printf("\nThe nth term of fibonacci series is : %f",t3);
}
getch();
}
//TOWER OF HANOI
#include<stdio.h>
#include<conio.h>
void toh(int, char, char, char);
void main()
{
int n;
printf("\nHow many disks?\t");
scanf("%d",&n);
toh(n,'A','B','C');
getch();
}
void toh(int n, char x, char y, char z)
{
if(n)
{
toh(n-1,x,z,y);
printf("\nMove top disk from tower %c ”,x);
printf(“to top of tower %c\n",y);
toh(n-1,z,y,x);
}
}
#include<stdio.h>
#include<conio.h>
void main()
{
int sq[50][50],sum=0;
int n,i,j,k,l,key;
clrscr();
printf("\nEnter the size (odd no.) of magic square : ");
scanf("%d",&n);
if(!(n%2))
{
printf("\nNumber is even");
printf("\nTry again with an odd number");
getch();
return;
}
else
{
for(i=0; i<n; i++)
for(j=0; j<n; j++)
sq[i][j] = 0;
sq[0][(n-1)/2] = 1;
j = (n-1)/2;
for(key=2; key <= n*n; key++)
{
k = (i)?(i-1):(n-1);
l = (j)?(j-1):(n-1);
if(sq[k][l])
i = (i+1)%n;
else
{
i = k;
j = l;
}
sq[i][j] = key;
}
for(j=0; j<n; j++)
sum+=sq[0][j];
printf("\nCommon Sum = %d\n",sum);
printf("\nMAGIC SQUARE of %dx%d is:\n",n,n);
for(i=0; i<n; i++)
{
printf("\n");
for(j=0; j<n; j++)
printf("%d\t",sq[i][j]);
}
}
getch();
}
//MATRIX ADDITION
#include<stdio.h>
#include<conio.h>
void main()
{
int a[10][10],b[10][10],c[10][10];
int i, j, m, n;
clrscr();
printf("\nEnter the no. of rows and columns: ");
scanf("%d %d",&m,&n);
printf("\nEnter the elements of first matrix:\n");
for(i=0; i<m; i++)
for(j=0; j<n; j++)
scanf("%d",&a[i][j]);
printf("\nEnter the elements of second matrix:\n");
for(i=0; i<m; i++)
for(j=0; j<n; j++)
scanf("%d",&b[i][j]);
for(i=0; i<m; i++)
for(j=0; j<n; j++)
c[i][j] = a[i][j] + b[i][j];
printf("\nResultant matrix is:\n");
for(i=0; i<m; i++)
{
for(j=0; j<n; j++)
printf("%d\t",c[i][j]);
printf("\n");
}
getch();
}
//MATRIX MULTIPLICATION
#include<stdio.h>
#include<conio.h>
void main()
{
int a[10][10],b[10][10],c[10][10];
int i, j, k, m1, n1, m2, n2;
clrscr();
printf("\nEnter the rows and columns for matrix I: ");
scanf("%d %d",&m1,&n1);
printf("\nEnter the rows and columns for matrix II: ");
scanf("%d %d",&m2,&n2);
if(m1!=n2)
{
printf("\nMatrix Multiplication is not possible.");
printf("\n\tTry again!");
getch();
exit();
}
printf("\nEnter the elements of matrix I:\n");
for(i=0; i<m1; i++)
for(j=0; j<n1; j++)
scanf("%d",&a[i][j]);
printf("\nEnter the elements of matrix II:\n");
for(i=0; i<m2; i++)
for(j=0; j<n2; j++)
scanf("%d",&b[i][j]);
for(i=0; i<m1; i++)
for(j=0; j<n1; j++)
for(k=0; k<n2; k++)
c[i][j] += a[i][k] * b[k][j];
printf("\nResultant matrix is:\n");
for(i=0; i<m1; i++)
{
for(j=0; j<n2; j++)
printf("%d\t",c[i][j]);
printf("\n");
}
getch();
}
//EXPONENTIATE
#include<stdio.h>
#include<conio.h>
#include<math.h>
void exponentiate(float,int);
void main()
{
float x;
int n=0;
clrscr();
printf("\nEnter number(may be float) & its power(integer):");
scanf("%f %d",&x,&n);
exponentiate(x,n);
getch();
}
void exponentiate(float x,int n)
{
int m=n;
float z=x, power=1;
while(m>0)
{
while((m%2)==0)
{
m = floor(m/2);
z = z*z;
}
m = m-1;
power = power * z;
}
printf("\n%f ^ %d = %f",x,n,power);
}
//TO PRINT THE NTH TERM OF FIBONACCI SERIES
#include<stdio.h>
#include<conio.h>
void main()
{
int n=0;
clrscr();
printf("\nEnter the value of n: ");
scanf("%d",&n);
if(n<=1)
{
printf("\nThe nth term of fibonacci series is : %d",n);
}
else
{
float t1=0,t2=1,t3;
int i;
for(i=2; i<=n; i++)
{
t3 = t1 + t2;
t1=t2;
t2=t3;
}
printf("\nThe nth term of fibonacci series is : %f",t3);
}
getch();
}
//TOWER OF HANOI
#include<stdio.h>
#include<conio.h>
void toh(int, char, char, char);
void main()
{
int n;
printf("\nHow many disks?\t");
scanf("%d",&n);
toh(n,'A','B','C');
getch();
}
void toh(int n, char x, char y, char z)
{
if(n)
{
toh(n-1,x,z,y);
printf("\nMove top disk from tower %c ”,x);
printf(“to top of tower %c\n",y);
toh(n-1,z,y,x);
}
}
Friday, August 22, 2008
NASSCOM helps youth
How NASSCOM helps youth
Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53483
NASSCOM Foundation
The Indian IT-BPO industry: Creating widespread economic and social impact
A recent and first of its kind Study on the impact of the IT industry on the Indian economy and society has thrown up very interesting findings. Commissioned by the NASSCOM Foundation and undertaken by Deloitte, the Report proves beyond doubt that the IT-BPO industry’s “for profit” and “not for profit” initiatives have resulted in significant growth and development across the country.
Over 123 member companies of NASSCOM participated in the Study, which attempted to assess and quantify the gains made by India owing to the IT-BPO sector, based on the performance of the industry on myriad parameters. At first glance, the Study shows that:
· The Indian IT-BPO industry has contributed significantly to economic growth in terms of GDP, foreign exchange earnings and employment generation.
· The sector’s contribution to the country’s GDP has been steadily rising, from a share of 1.2 percent in FY98 to 5.2 percent in FY07.
· It has resulted in India achieving export earnings of US$ 40 billion in 2000 and boosting the foreign exchange reserve of the country.
· The sector has resulted in generating direct employment of the order of two million by the end of 2008, making it the largest employer in the organized private sector.
· It has also created a ripple effect on the general economic environment in the national and international economic space.
· The industry has been the trigger for many “firsts” and contributed to unleashing the hitherto untapped entrepreneurial potential of the middle class Indian.
· It has taken Indian excellence to the global market.
At an indirect level, the IT-BPO industry has had the following positive impact on other sectors of the economy:
· Resulted in additional, indirect employment generation, where for every job created in the sector, four are created in the economy.
· Created employment for the hitherto margialized sections of society. Interestingly, nearly 75 percent of those employed are the SSC/HSC or the less educated.
· Led to growth of other sectors of the economy with an output multiplier of almost 2 through its non-wage operating expenses, capital expenditure and consumption spending by professionals.
· The Study shows that US$ 15.85 billion spent by the IT-BPO industry in the domestic economy in FY06 generated an additional output of US$ 15.5 billion.
· Encouraged balanced regional development by gradually spreading business operations to smaller Tier II/III cities.
· Assisted in improving the supply of talent pool and development of physical and social infrastructure, either directly or by spurring the Government to action.
Lending a helping hand to society
As socially responsible organizations, IT-BPO companies have undertaken various initiatives to help the disadvantaged sections of society, including the following:
Developed products and services, that enable betterment of lives and ensure that the benefits of technology percolate to all levels of society
Undertaken various community-based programs focused on the marginalized that span areas such as health, education, rural development, women and children etc.
Helped bridge the digital divide by developing software in the local language to touch larger sections of society
Provided technology assistance to NGOs and undertaken socially relevant community initiatives.
Used technology to improve the quality of life in rural areas.
Creating a buzz around VC funding and entrepreneurship
On a broader front, the IT-BPO industry has helped fuel the growth of PE/VC funding, leading to the creation of the first generation of India-centric VC funds. Other sectors, such as healthcare, manufacturing and financial services have also benefited from this phenomenon as these sectors are now also being able to access this source of funding. While the IT-BPO industry continues to be the favorite sector with the largest share (28 percent) of PE/VC funding, other industries now account for a 72 percent share as compared to 34 percent in 2000.
This trend has also resulted in heightened entrepreneurship activity, which has witnessed a huge jump owing to the IT-BPO industry. While earlier, corporate India was predominantly about large, family-owned businesses, the arrival of the IT-BPO industry, the shift of focus from physical capital to intellectual capital and the advent of PE/VC funding has enabled a large number of first generation entrepreneurs with no wealth, to try their hand at starting new enterprises. The demonstrated success of these entrepreneurs has created an aspiration among the middle class and spurred them to exploit their potential with confidence.
According to information available with the Software Technology Parks of India (STPI), 1,905 new units were registered during the period FY01 to FY05, most of which were likely to be set up by first generation entrepreneurs. While many first-generation entrepreneurs became billionaires in the process, the wealth created was not restricted to the founders alone. The practice of the Employee Stock Option Plan (ESOP), first embraced by the IT-BPO industry, shared this wealth among employees, thereby creating many salaried millionaires.
Getting India on the quality bandwagon
Adoption of the highest quality standards by Indian IT-BPO organizations Has helped dispel India’s low quality image and raised the bar for other industries. India is now emerging as a Research and Development hub for some of the largest IT-BPO companies in the world, once again demonstrating that it now stands for quality. Today, 30 percent of companies worldwide that have reached Level 5 of the Capability Maturity Model Integration (CMMI) are Indian IT-BPO firms.
The NASSCOM Foundation: playing its part
The NASSCOM Foundation has taken significant strides in helping promote thepractice of socially relevant initiatives amongst member companies, including the following:
Provided hand holding support and advisory services to small-sized members
Disseminated information on best practices, international benchmarks and monitoring mechanisms
Identified sector-specific investment opportunities
Developed an Award/recognition system for socially relevant community activities
Helped NGOs in the task of capacity building
Emerging as the preferred employer
Besides being the largest employer in the organized private sector, the IT-BPO industry has also become the preferred job destination on account of the fact that it has created employment opportunities in smaller towns/cities; encouraged employment of the differently-abled: opened opportunities for non-technical personnel: promoted women empowerment, built a connect with Indian youth and created opportunities for the “out-of-the-mainstream” candidates.
Expanding India’s talent pool
The Indian IT-BPO industry, in an effort to combat manpower shortfalls, has made massive in-house training investments, to power its growth and become globally competitive. The industry has also gone beyond and collaborated with the government, private educational institutions as well as industry associations to help build capacity and skills.
NASSCOM has been involved in developing standards for training and recruitment at the entry level to make students more employable. The top 5 software companies are investing close to US$ 430 million in FY08 to train around 100,000 engineers hired during this period. Companies on an average conduct 163 training programs annually, with almost 80 percent spent on training entry level hires.
Women in IT
Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53482
Entering the “Boardroom of the Future”
Women in India matter. For one, they are 50 percent of India’s total population, even though census figures tell us that they constitute only 18 percent of the “organized sector.” In the developed nations of the world, that number would be closer to 50 percent, and certainly it is 50 percent for all white collar jobs. There is a direct correlation between women in employment and the economic well being of a nation. Therefore, at 18 percent, we have our job cut out for us. We have to take the number to where it belongs: 50 percent in our lifetime.
Board Room of the Future
Before I talk about the role of Professional Women and the part they will play in the boardroom of the future, it is important to examine both the issues and possibly bring up some not so palatable truths. First and foremost, Board rooms are de-sexed places. The idea is not to enter a Board room with gender, but rather with intellect and proven capability.
Let us look at the emerging face of the Board room, the Board Room of the Future, and there may be a twist to the tale. I believe that the traditional Board room is ready for a face over. In it, there are eight emerging themes that the Board Members must engage in, in addition to what they do best: protecting the interest of the share holders.
The eight themes defining the Board of the Future
First and foremost, the Board of the Future must be able to take a multi-disciplinary view of the business. In an increasingly global and hyper-competitive world, companies must have an idea of how their products and services impact others and how others impact their business. Gone are the days when accounting meant accounting, marketing meant marketing and production meant just that. While the operating management must have a more disciplined focus, a Board must be capable of creating synthesis.
People who aspire to the Board must therefore have the capacity to build a multi-disciplinary view of things. This requirement goes against the grain of the typical Indian woman professional because she quite often decides to “specialize” in the interest of “work-life balance.”
She often decides that it is better to be a child specialist than a hospital CEO. She thinks, it is better to be a product manager than the sales head and so on. As a result, women professionals opt-out of rotational assignments and resist geographic displacement that is essential in mid-career so that a person develops the insights, the capacity to grasp and question, from a multi-disciplinary point of view.
Building the capacity to understand, question and process
The second emergent feature of the Board Room of the Future is the capacity to understand, and process. While the Board’s job is not to deliver the results, nor to engage with the details of the business, yet it must have, at a higher level, process centricity over result centricity. After all, the results are about the past and there is little one can do for things already done. Therefore, the Board must ensure that the processes in the corporation are right, that management is focused on doing the right things in the right way. If board members themselves do not have affinity to process, they will not be able to question the management on the hows and the whys, leaving its interaction at shallow levels and thereby sometimes assuming even punitive risks under an increasingly vigilant legal system.
Understanding Innovation
The third aspect about the Board of the Future is its capacity to understand innovation. This one is critical from the point of view of long-term competitiveness of the enterprise. While it may be possible for an organization to make short-term progress and profits without innovation, in the long-term, it is dead. In the future, innovation will dominate Board room conversation from another critical angle: risk taking. An intelligent board would mean an innovation centric board for sure.
Sustaining sustainability!
The next theme I am going to talk about is sustainability. It has been on many lips but on few hearts so far. But today, more than ever before, businesses must recognize the interconnectedness of the world within which money must be made. That interconnected world is full of surprises. The role of enterprises must be to de-risk these surprises and deliver consistently. Successful corporations cannot any longer come out with a spectacular product or a service or a market find from a shareholder stand-point as just a flash in the pan. Sustainability is a leadership expectation. It is the core of all strategy. The Board of the Future has to hold the sustainability mirror in front of the management face for every key policy and its implementation and all sustainability begins with inclusion.
Having spoken about sustainability, let me now talk about an emergent concept called “Emotional Infrastructure.” Since the last couple of years, Professor Vijay Govindarajan of the Tuck School (Author of “Ten Rules of Strategic Innovation” and GE’s Professor in Residence for Innovation for 2008) and I have been applying our minds to this new way of looking at the leadership imperative. Our view is that an organization has three layers of infrastructure. At the bottommost is the Physical Infrastructure which is easy to build and easy to replicate, gives you the “table stakes,” but no competitive advantage.
Above it, is what we call the Intellectual Infrastructure which is thought- leadership intensive, takes longer to build and offers competitive advantage, though fleeting. The ultimate defence however, comes with building the Emotional Infrastructure in a corporation. It is the Emotional Infrastructure that creates “memorability.” We believe, in the very near future, people will have to understand Emotional Infrastructure, and begin to monetize “emotional assets.”
Just as the Board of the Future must focus on the Emotional Infrastructure of the enterprise, it also must fully engage with the all-encompassing thought of Governance. It is not just going to be a legal issue with a narrow geographic focus. The principles of governance must be global, the practices must be scalable and the propagation and defence must be cogent and visible to all stake-holders.
In addition to Governance, I believe the Board of the Future would have to lead the charge on issues related to our Environment, in a far more visible and proactive manner. Board Rooms of the future will have to discern and dialogue on what a corporation’s approved product idea, manufacturing practice or the expansion plan, do to the environment.
Finally, there is the issue of the social responsibility of an enterprise. No longer are we operating in isolation. Investors and buyers alike are beginning to ask what the social beliefs of the enterprise are, what does it stand for? As a civil society, we are no longer willing to accept that business has only one Face—that of a money maker. The Board is the representative of the civil society to keep the management honest and the enterprise cognizant of its social purpose.
Women Professionals in India Ready?
Now let me ask a fundamental question: between the two genders, which one has a natural flair for these eight elements? Yes, indeed these eight elements are inherently feminine; they require a nurturing view of the future and ask us to take a long view of time. Suddenly, as if, the corporation, the male bastion of greed, is discovering its feminine side, which alone would make it whole. This sudden turn would naturally make a woman professional very happy but, that does not take away a basic question from being asked: Is she ready? Probably, largely, the answer is “No.” Not today.
There are three hindrances working against her, vis-a-vis the Board of the Future. These are, stereotyping the female professional, personal sense of mid-career guilt and finally, the proverbial glass ceiling. The stereotype relates to the role of gender in a profession. The woman professional is both a victim and a perpetrator of the stereotype. Consider these:
· Women should choose banking as a career over sales
· Women should be teachers (Preferably part-time!)
· Women should not take up transferable jobs
· In their first two jobs after college, women-professionals are just waiting to get married and then get serious about their work
· If the woman-professional marries someone out of town, it is she who must relocate
The moment we succumb to these stereotypes, the conversation on the Board of the Future becomes meaningless. The bottom-line is that the woman professional who wants to go to the top must first refuse to be stereotyped.
A woman-professional must also know that at the top, life is very demanding and very de-sexed. It is not just possible to become an Indra Nooyi, Naina Lal Kidwai, Mallika Sarabhai or a Vasundhara Raje Scindia by trying to juggle work, home, husband, mother-in-law and making pickle.
The truth is, these women are juggling nothing–they are steadfastly committed to their respective professions and are very ambitious individuals who are focused on the goal that demands a price paid at the entrance. These people are professionals first and women next. They are led by their competence and not their gender when they walk into an organization, perform before an audience or run a state.
Now to talk about the personal sense of mid-career guilt. Even the best of women professionals experience this guilt once their children come into the picture and they ask themselves the question, “Am I being a good mother?” I believe, this sense of guilt is pervasive, meaningless and debilitating. The fact of the matter is that today’s children are getting far more than we ever got. Therefore, why the guilt? I believe the Indian middle-class is over focused on its children and this obsession is neither good for the parent nor the child.
Women professionals around the world are far more at peace with their parenting capability than their middle-class, Indian counterparts.
The other part is that to go to the top, whether you are a man or a woman, you must travel a lot, sometimes work weekends, network outside the workplace, learn on your own initiative, engage continuously and finally, give an awful lot more than you get. These have less to do with the organization; they have more to do with your own deep driving desire.
The real and perceived glass ceiling
Many women in modern India have proven that there is indeed a glass ceiling, and also that it can be busted. We have no dearth of role models before us.
The future, someone said, is a brick wall; it is meant to keep out folks who do not seriously want to get beyond it. The opportunities in corporate India are exploding. Therefore, what I’d like to say to the women is please be comfortable with your gender.
Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53483
NASSCOM Foundation
The Indian IT-BPO industry: Creating widespread economic and social impact
A recent and first of its kind Study on the impact of the IT industry on the Indian economy and society has thrown up very interesting findings. Commissioned by the NASSCOM Foundation and undertaken by Deloitte, the Report proves beyond doubt that the IT-BPO industry’s “for profit” and “not for profit” initiatives have resulted in significant growth and development across the country.
Over 123 member companies of NASSCOM participated in the Study, which attempted to assess and quantify the gains made by India owing to the IT-BPO sector, based on the performance of the industry on myriad parameters. At first glance, the Study shows that:
· The Indian IT-BPO industry has contributed significantly to economic growth in terms of GDP, foreign exchange earnings and employment generation.
· The sector’s contribution to the country’s GDP has been steadily rising, from a share of 1.2 percent in FY98 to 5.2 percent in FY07.
· It has resulted in India achieving export earnings of US$ 40 billion in 2000 and boosting the foreign exchange reserve of the country.
· The sector has resulted in generating direct employment of the order of two million by the end of 2008, making it the largest employer in the organized private sector.
· It has also created a ripple effect on the general economic environment in the national and international economic space.
· The industry has been the trigger for many “firsts” and contributed to unleashing the hitherto untapped entrepreneurial potential of the middle class Indian.
· It has taken Indian excellence to the global market.
At an indirect level, the IT-BPO industry has had the following positive impact on other sectors of the economy:
· Resulted in additional, indirect employment generation, where for every job created in the sector, four are created in the economy.
· Created employment for the hitherto margialized sections of society. Interestingly, nearly 75 percent of those employed are the SSC/HSC or the less educated.
· Led to growth of other sectors of the economy with an output multiplier of almost 2 through its non-wage operating expenses, capital expenditure and consumption spending by professionals.
· The Study shows that US$ 15.85 billion spent by the IT-BPO industry in the domestic economy in FY06 generated an additional output of US$ 15.5 billion.
· Encouraged balanced regional development by gradually spreading business operations to smaller Tier II/III cities.
· Assisted in improving the supply of talent pool and development of physical and social infrastructure, either directly or by spurring the Government to action.
Lending a helping hand to society
As socially responsible organizations, IT-BPO companies have undertaken various initiatives to help the disadvantaged sections of society, including the following:
Developed products and services, that enable betterment of lives and ensure that the benefits of technology percolate to all levels of society
Undertaken various community-based programs focused on the marginalized that span areas such as health, education, rural development, women and children etc.
Helped bridge the digital divide by developing software in the local language to touch larger sections of society
Provided technology assistance to NGOs and undertaken socially relevant community initiatives.
Used technology to improve the quality of life in rural areas.
Creating a buzz around VC funding and entrepreneurship
On a broader front, the IT-BPO industry has helped fuel the growth of PE/VC funding, leading to the creation of the first generation of India-centric VC funds. Other sectors, such as healthcare, manufacturing and financial services have also benefited from this phenomenon as these sectors are now also being able to access this source of funding. While the IT-BPO industry continues to be the favorite sector with the largest share (28 percent) of PE/VC funding, other industries now account for a 72 percent share as compared to 34 percent in 2000.
This trend has also resulted in heightened entrepreneurship activity, which has witnessed a huge jump owing to the IT-BPO industry. While earlier, corporate India was predominantly about large, family-owned businesses, the arrival of the IT-BPO industry, the shift of focus from physical capital to intellectual capital and the advent of PE/VC funding has enabled a large number of first generation entrepreneurs with no wealth, to try their hand at starting new enterprises. The demonstrated success of these entrepreneurs has created an aspiration among the middle class and spurred them to exploit their potential with confidence.
According to information available with the Software Technology Parks of India (STPI), 1,905 new units were registered during the period FY01 to FY05, most of which were likely to be set up by first generation entrepreneurs. While many first-generation entrepreneurs became billionaires in the process, the wealth created was not restricted to the founders alone. The practice of the Employee Stock Option Plan (ESOP), first embraced by the IT-BPO industry, shared this wealth among employees, thereby creating many salaried millionaires.
Getting India on the quality bandwagon
Adoption of the highest quality standards by Indian IT-BPO organizations Has helped dispel India’s low quality image and raised the bar for other industries. India is now emerging as a Research and Development hub for some of the largest IT-BPO companies in the world, once again demonstrating that it now stands for quality. Today, 30 percent of companies worldwide that have reached Level 5 of the Capability Maturity Model Integration (CMMI) are Indian IT-BPO firms.
The NASSCOM Foundation: playing its part
The NASSCOM Foundation has taken significant strides in helping promote thepractice of socially relevant initiatives amongst member companies, including the following:
Provided hand holding support and advisory services to small-sized members
Disseminated information on best practices, international benchmarks and monitoring mechanisms
Identified sector-specific investment opportunities
Developed an Award/recognition system for socially relevant community activities
Helped NGOs in the task of capacity building
Emerging as the preferred employer
Besides being the largest employer in the organized private sector, the IT-BPO industry has also become the preferred job destination on account of the fact that it has created employment opportunities in smaller towns/cities; encouraged employment of the differently-abled: opened opportunities for non-technical personnel: promoted women empowerment, built a connect with Indian youth and created opportunities for the “out-of-the-mainstream” candidates.
Expanding India’s talent pool
The Indian IT-BPO industry, in an effort to combat manpower shortfalls, has made massive in-house training investments, to power its growth and become globally competitive. The industry has also gone beyond and collaborated with the government, private educational institutions as well as industry associations to help build capacity and skills.
NASSCOM has been involved in developing standards for training and recruitment at the entry level to make students more employable. The top 5 software companies are investing close to US$ 430 million in FY08 to train around 100,000 engineers hired during this period. Companies on an average conduct 163 training programs annually, with almost 80 percent spent on training entry level hires.
Women in IT
Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53482
Entering the “Boardroom of the Future”
Women in India matter. For one, they are 50 percent of India’s total population, even though census figures tell us that they constitute only 18 percent of the “organized sector.” In the developed nations of the world, that number would be closer to 50 percent, and certainly it is 50 percent for all white collar jobs. There is a direct correlation between women in employment and the economic well being of a nation. Therefore, at 18 percent, we have our job cut out for us. We have to take the number to where it belongs: 50 percent in our lifetime.
Board Room of the Future
Before I talk about the role of Professional Women and the part they will play in the boardroom of the future, it is important to examine both the issues and possibly bring up some not so palatable truths. First and foremost, Board rooms are de-sexed places. The idea is not to enter a Board room with gender, but rather with intellect and proven capability.
Let us look at the emerging face of the Board room, the Board Room of the Future, and there may be a twist to the tale. I believe that the traditional Board room is ready for a face over. In it, there are eight emerging themes that the Board Members must engage in, in addition to what they do best: protecting the interest of the share holders.
The eight themes defining the Board of the Future
First and foremost, the Board of the Future must be able to take a multi-disciplinary view of the business. In an increasingly global and hyper-competitive world, companies must have an idea of how their products and services impact others and how others impact their business. Gone are the days when accounting meant accounting, marketing meant marketing and production meant just that. While the operating management must have a more disciplined focus, a Board must be capable of creating synthesis.
People who aspire to the Board must therefore have the capacity to build a multi-disciplinary view of things. This requirement goes against the grain of the typical Indian woman professional because she quite often decides to “specialize” in the interest of “work-life balance.”
She often decides that it is better to be a child specialist than a hospital CEO. She thinks, it is better to be a product manager than the sales head and so on. As a result, women professionals opt-out of rotational assignments and resist geographic displacement that is essential in mid-career so that a person develops the insights, the capacity to grasp and question, from a multi-disciplinary point of view.
Building the capacity to understand, question and process
The second emergent feature of the Board Room of the Future is the capacity to understand, and process. While the Board’s job is not to deliver the results, nor to engage with the details of the business, yet it must have, at a higher level, process centricity over result centricity. After all, the results are about the past and there is little one can do for things already done. Therefore, the Board must ensure that the processes in the corporation are right, that management is focused on doing the right things in the right way. If board members themselves do not have affinity to process, they will not be able to question the management on the hows and the whys, leaving its interaction at shallow levels and thereby sometimes assuming even punitive risks under an increasingly vigilant legal system.
Understanding Innovation
The third aspect about the Board of the Future is its capacity to understand innovation. This one is critical from the point of view of long-term competitiveness of the enterprise. While it may be possible for an organization to make short-term progress and profits without innovation, in the long-term, it is dead. In the future, innovation will dominate Board room conversation from another critical angle: risk taking. An intelligent board would mean an innovation centric board for sure.
Sustaining sustainability!
The next theme I am going to talk about is sustainability. It has been on many lips but on few hearts so far. But today, more than ever before, businesses must recognize the interconnectedness of the world within which money must be made. That interconnected world is full of surprises. The role of enterprises must be to de-risk these surprises and deliver consistently. Successful corporations cannot any longer come out with a spectacular product or a service or a market find from a shareholder stand-point as just a flash in the pan. Sustainability is a leadership expectation. It is the core of all strategy. The Board of the Future has to hold the sustainability mirror in front of the management face for every key policy and its implementation and all sustainability begins with inclusion.
Having spoken about sustainability, let me now talk about an emergent concept called “Emotional Infrastructure.” Since the last couple of years, Professor Vijay Govindarajan of the Tuck School (Author of “Ten Rules of Strategic Innovation” and GE’s Professor in Residence for Innovation for 2008) and I have been applying our minds to this new way of looking at the leadership imperative. Our view is that an organization has three layers of infrastructure. At the bottommost is the Physical Infrastructure which is easy to build and easy to replicate, gives you the “table stakes,” but no competitive advantage.
Above it, is what we call the Intellectual Infrastructure which is thought- leadership intensive, takes longer to build and offers competitive advantage, though fleeting. The ultimate defence however, comes with building the Emotional Infrastructure in a corporation. It is the Emotional Infrastructure that creates “memorability.” We believe, in the very near future, people will have to understand Emotional Infrastructure, and begin to monetize “emotional assets.”
Just as the Board of the Future must focus on the Emotional Infrastructure of the enterprise, it also must fully engage with the all-encompassing thought of Governance. It is not just going to be a legal issue with a narrow geographic focus. The principles of governance must be global, the practices must be scalable and the propagation and defence must be cogent and visible to all stake-holders.
In addition to Governance, I believe the Board of the Future would have to lead the charge on issues related to our Environment, in a far more visible and proactive manner. Board Rooms of the future will have to discern and dialogue on what a corporation’s approved product idea, manufacturing practice or the expansion plan, do to the environment.
Finally, there is the issue of the social responsibility of an enterprise. No longer are we operating in isolation. Investors and buyers alike are beginning to ask what the social beliefs of the enterprise are, what does it stand for? As a civil society, we are no longer willing to accept that business has only one Face—that of a money maker. The Board is the representative of the civil society to keep the management honest and the enterprise cognizant of its social purpose.
Women Professionals in India Ready?
Now let me ask a fundamental question: between the two genders, which one has a natural flair for these eight elements? Yes, indeed these eight elements are inherently feminine; they require a nurturing view of the future and ask us to take a long view of time. Suddenly, as if, the corporation, the male bastion of greed, is discovering its feminine side, which alone would make it whole. This sudden turn would naturally make a woman professional very happy but, that does not take away a basic question from being asked: Is she ready? Probably, largely, the answer is “No.” Not today.
There are three hindrances working against her, vis-a-vis the Board of the Future. These are, stereotyping the female professional, personal sense of mid-career guilt and finally, the proverbial glass ceiling. The stereotype relates to the role of gender in a profession. The woman professional is both a victim and a perpetrator of the stereotype. Consider these:
· Women should choose banking as a career over sales
· Women should be teachers (Preferably part-time!)
· Women should not take up transferable jobs
· In their first two jobs after college, women-professionals are just waiting to get married and then get serious about their work
· If the woman-professional marries someone out of town, it is she who must relocate
The moment we succumb to these stereotypes, the conversation on the Board of the Future becomes meaningless. The bottom-line is that the woman professional who wants to go to the top must first refuse to be stereotyped.
A woman-professional must also know that at the top, life is very demanding and very de-sexed. It is not just possible to become an Indra Nooyi, Naina Lal Kidwai, Mallika Sarabhai or a Vasundhara Raje Scindia by trying to juggle work, home, husband, mother-in-law and making pickle.
The truth is, these women are juggling nothing–they are steadfastly committed to their respective professions and are very ambitious individuals who are focused on the goal that demands a price paid at the entrance. These people are professionals first and women next. They are led by their competence and not their gender when they walk into an organization, perform before an audience or run a state.
Now to talk about the personal sense of mid-career guilt. Even the best of women professionals experience this guilt once their children come into the picture and they ask themselves the question, “Am I being a good mother?” I believe, this sense of guilt is pervasive, meaningless and debilitating. The fact of the matter is that today’s children are getting far more than we ever got. Therefore, why the guilt? I believe the Indian middle-class is over focused on its children and this obsession is neither good for the parent nor the child.
Women professionals around the world are far more at peace with their parenting capability than their middle-class, Indian counterparts.
The other part is that to go to the top, whether you are a man or a woman, you must travel a lot, sometimes work weekends, network outside the workplace, learn on your own initiative, engage continuously and finally, give an awful lot more than you get. These have less to do with the organization; they have more to do with your own deep driving desire.
The real and perceived glass ceiling
Many women in modern India have proven that there is indeed a glass ceiling, and also that it can be busted. We have no dearth of role models before us.
The future, someone said, is a brick wall; it is meant to keep out folks who do not seriously want to get beyond it. The opportunities in corporate India are exploding. Therefore, what I’d like to say to the women is please be comfortable with your gender.
India's Share in IT industry
US share in IT exports falls to 61.68 pc: ESC
Source: http://www.thehindubusinessline.com/2004/09/27/stories/2004092701710200.htm
Our Bureau
Exports to the US and Canada, in absolute terms, have gone up from Rs 29,658 crore in 2002-03 to Rs 35,777 crore in 2003-04.
New Delhi , Sept. 26
THE share of Indian software and IT-enabled services (ITES) exports to North America has come down from 63.78 per cent in 2002-03 to 61.68 per cent in 2003-04, even as the share of exports to Europe and Japan has shown an upward swing.
"It is a good augury that the overdependence on one single market — the US, for export of software and services, is coming down. This only shows that export penetration in alternate markets are picking up. This is a good hedge against market risk that could happen to software exports from India," Mr D. K. Sareen, Executive Director, Electronics and Computer Software Export Promotion Council (ESC), said in a statement.
India's exports to the US and Canada, in absolute terms, have gone up from Rs 29,658 crore in 2002-03 to Rs 35,777 crore in 2003-04 — an increase of 21 per cent in rupee terms.
"This has happened, despite the campaign in the US against the business process outsourcing. We are confident that software and services exports to the US will grow at an average rate of 20 per cent in the coming years and India will continue to be the most sought after outsourcing destination for the US companies," he said.
Mr Sareen pointed out that the share of Indian software exports to Europe had risen from 22.79 per cent in 2002-03 to 25.09 per cent in 2003-04.
In absolute terms, exports to Europe have picked up from Rs 10,597 crore in 2002-03 to Rs 14,545 crore in 2003-04.
Interestingly, the share of software and services exports to Japan and other Far East countries also went up in 2003-04, according to ESC estimates.
In 2003-04, share of exports to Japan and other Far East countries was 5.36 per cent, as against 4.44 per cent in 2002-03.
Another significant increase in India's export of software and services was to the Latin American region.
Source: http://www.thehindubusinessline.com/2004/09/27/stories/2004092701710200.htm
Our Bureau
Exports to the US and Canada, in absolute terms, have gone up from Rs 29,658 crore in 2002-03 to Rs 35,777 crore in 2003-04.
New Delhi , Sept. 26
THE share of Indian software and IT-enabled services (ITES) exports to North America has come down from 63.78 per cent in 2002-03 to 61.68 per cent in 2003-04, even as the share of exports to Europe and Japan has shown an upward swing.
"It is a good augury that the overdependence on one single market — the US, for export of software and services, is coming down. This only shows that export penetration in alternate markets are picking up. This is a good hedge against market risk that could happen to software exports from India," Mr D. K. Sareen, Executive Director, Electronics and Computer Software Export Promotion Council (ESC), said in a statement.
India's exports to the US and Canada, in absolute terms, have gone up from Rs 29,658 crore in 2002-03 to Rs 35,777 crore in 2003-04 — an increase of 21 per cent in rupee terms.
"This has happened, despite the campaign in the US against the business process outsourcing. We are confident that software and services exports to the US will grow at an average rate of 20 per cent in the coming years and India will continue to be the most sought after outsourcing destination for the US companies," he said.
Mr Sareen pointed out that the share of Indian software exports to Europe had risen from 22.79 per cent in 2002-03 to 25.09 per cent in 2003-04.
In absolute terms, exports to Europe have picked up from Rs 10,597 crore in 2002-03 to Rs 14,545 crore in 2003-04.
Interestingly, the share of software and services exports to Japan and other Far East countries also went up in 2003-04, according to ESC estimates.
In 2003-04, share of exports to Japan and other Far East countries was 5.36 per cent, as against 4.44 per cent in 2002-03.
Another significant increase in India's export of software and services was to the Latin American region.
China vs. India in IT / ITES
China could overtake India in IT-ITES
Source: http://letswatchstocks.blogspot.com/2007/11/china-could-overtake-india-in-it-ites.html
Date: November 1, 2007
China could overtake India as the most preferred outsourcing destination in the next 3-5 years on the back of an educated workforce coupled with strong government emphasis on IT-BPO sector, according to a study. "The IT-BPO industry in China is still in its early phases of evolution but it has the potential to develop a large IT-BPO industry," the study on 'Tracing China's IT Software Services Industry Evolution' by industry body Nasscom said. The software and services revenues in China is estimated to grow at 22 per cent to reach 28 billion dollar by 2010 including domestic market at over $20 billion, the study said. China has recorded $12.3 billion of revenues in this sector in 2006. India's IT Software and Services Revenues is likely to reach 50 billion dollar in 2007-08, according to Nasscom. The current industry landscape in China bears some resemblance to earlier years of Indian IT-BPO industry but systemic weaknesses and comparatively evolved demand and competitive environments are some of the challenges. Nasscom also suggested a collaborative partnership between Indian and Chinese companies. Nasscom President Kiran Karnik said that the Indian expertise in IT sector combined with manufacturing dominance of China could be one of the possibility for a partnership. Indian IT-BPO exports are mainly serving the US and the UK markets, which together account for over 80 per cent of the total exports. On the other hand, China's key export market areas are Japan and Korea, where it has certain inherent linguistic/cultural advantages, the survey noted.
China and India 'could lead in IT'
Source: http://news.bbc.co.uk/2/hi/south_asia/1765525.stm
Thursday, 17 January, 2002, 12:23 GMT
India is ahead of China in software - for the moment
China and India could dominate the global information technology market if they combined forces, according to Chinese premier Zhu Rongji.
You are number one in terms of software we are number one in terms of hardware
Chinese premier Zhu Rongji
Mr Zhu, addressing Indian IT leaders in the southern city of Bangalore, said that if Indian software was combined with Chinese hardware, it would lead the world.
The Chinese leader is on an official visit to India - the first by a Chinese premier in a decade.
He has already called for the two Asian giants to boost trade and economic co-operation, and has voiced his condemnation of the recent attack on the Indian parliament.
Future 'rivals'
Mr Zhu used his address to IT leaders to give approval to India's best-known software firm, Infosys, to set up an operation in the city of Shanghai.
Beijing is eager to develop ties
He said that China's huge population and vast potential market made it an attractive location for Indian firms.
However, the head of Infosys, NR Narayana Murthy, had earlier given a warning that China could overtake India in the global software market if it was not careful.
He told the BBC on Wednesday that India should learn from the Chinese experience in opening up new markets, implementing quick decision making and improving basic infrastructure.
In 2001, Indian software exports reached $6.2bn while China's have yet to reach $1bn.
However, the business research group Gartner has said that China could eventually overtake India as the main IT outsourcing hub for US companies.
Possibilities 'immense'
Kieran Karnik, the President of the National Association of Software and Service companies in India told the BBC's World Business Report that he welcomed the comments of Mr Zhu.
"China is strong in hardware, their facilities, their abilities and their costs are such that they are already dominant in a large part of the manufacturing arena," he said.
"India is a major leader in software, we have a lot of things going for us - quality, productivity and of course cost effectiveness," he added.
"If we marry the two, I think particularly in certain areas like embedded software, like consumer durables which use a lot of computer technology within them, where manufacturing quantities are large and cost need to be low and the software needs to be cleverly designed, I think the possibilities are immense."
Co-operation urged
Mr Zhu has said on his currenthas said the two countries should work more closely together in other fields.
He called for them to envisage a future based on "harmony and friendship."
Bilateral relations have been overshadowed for decades by a still unresolved border dispute and by China's close ties with India's rival, Pakistan.
But analysts believe China may be ready to overcome years of mistrust in order to counter growing US influence in South Asia.
Software Wars: China vs. India
Source: http://www.wired.com/techbiz/media/news/2002/04/51706
Manu Joseph 04.25.02
MUMBAI -- The Indian software industry has been afflicted with "China-phobia" for over a year, the fear being that its neighbor could supplant India as the digital software giant of Asia.
But the National Association of Software and Services Companies (NASSCOM), which had earlier issued warnings, has now said that China is not a threat until at least 2005.
"Indian industry is substantially ahead of the Chinese software industry, not only in terms of revenues but also quality, skilled manpower, project management capabilities and execution skills," said Sunil Mehta, vice president of NASSCOM.
Mehta, who recently visited China, said the Chinese government has officially projected it would achieve $1.5 billion in software exports in 2005; the Indian projection for 2005 is $23 billion. Chinese exports between April 2001 and March 2002 stood between $400 million to $600 million, while Indian exports for the same period were $7.8 billion, Mehta said.
Yet while those projections comforted Mehta, a top executive of a software firm in Hong Kong scoffed: "No Indian company in its right mind should fall for this false sense of security," said the executive, who spoke only on condition of anonymity. "Figures lie. One fine day India may wake up to the fact that China has beaten it to the finish line."
The executive declined to elaborate on what exactly China is doing to achieve this end. And while the executive's decision to remain anonymous might seem unnecessary considering the innocuous nature of his boast, one Indian investor says it's all part of the way the Chinese do business.
"Many corporates there have taken a policy decision not to react to the Indian software industry. They don't want Indian companies to get a clear idea of what they are thinking," said investor Mahesh Murthy, who watches the industry and the markets closely.
Murthy, and others in the industry spoken to for this article, dismiss NASSCOM's newfound optimism as little more than cheerleading for the home team.
"I can tell you that this talk about China not being a threat only helps in guarding Indian software companies at the stock market," Murthy said.
The reality, he and other industry people said, is stark. While until about a year ago top Indian service firms were charging American companies $75 to $90 an hour, today the figures are merely $6 to $9. Murthy believes that China will very soon do the same job at about $3 an hour -- and that will bleed Indian firms to death.
The projected growth rate for the Indian software firms between 2002 and 2003 is about 20 percent, a tremendous decline from the recent days of more than 100 percent annual growth. "Even steel companies grow at 20 percent," an observer said.
One of the factors that Indians count on in securing software contracts is their mastery of English. The Chinese, meanwhile, have only recently begun to emphasize English in their schools.
When China was bidding for the 2008 Olympics, the mayor of Beijing announced that every man in his city will learn to speak English if the sporting event comes to his town. China has bagged the right to hold the Olympics in 2008, and there are some Indians who think it's a bad omen.
Ironically, China's rapid growth in Internet technology could wind up being a plus for India; many are beginning to view China as a great market rather than as a potential competitor.
The size of the Indian domestic market fades in comparison with China's. India has just 7 million Internet users while China has 34 million. This means that while 68 Indians in 10,000 have access to the Net, the corresponding figure for China is 260.
"Indian IT companies seeking to globalize their operations should evaluate China as a huge potential market in telecom, financial services and manufacturing sectors," said Nandan Nilekani, CEO of India's Infosys, which is very serious about doing business in China. "China could also serve as a base for software development for Indian companies."
Budget 2007: Causing concern for the Indian IT industry
Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=51104
NASSCOM Web Architects
The 2007 Budget has spelt dismay, rather than delight for the Indian IT-BPO industries. The February 28 announcements by Finance Minister P. Chidambaram on the floor of the house, have drawn more frowns than cheers from the IT sector.
Commenting on Budget 2007, Rahul Gupta, Vice Chairman, Storage Networking Industry Association (SNIA) said it was disappointing and did not recognize or acknowledge the substantial contribution of the Indian IT industry to the country’s economy.
A quick study of the Budget indicates the concern areas, that are likely to have a detrimental impact on the growth of the Indian IT-BPO industries. Meanwhile, here are the changes that have been ushered in by Budget 2007.
Effective corporate tax for domestic companies up from 33.66 to 33.99 percent as a result of an increase in the education cess from 2 to 3 percent. Limited relief in the form of abolition of surcharge for companies whose income is up to one crore rupees.
Dividend distribution tax increased from 12.5 to 15 percent, resulting in effective DDT going up from 14.025 to 16.995 percent.
Proposal to extend MAT to income in respect of which deduction is claimed under sections 10A and 10B. This introduces a 11.33 percent cost to such operations—while creditable in future, there will only be a three year window beyond the expiry of the tax holidays under these sections to set-off the MAT paid during the year 2007-08. SEZ units seem to have been left out of the applicability of the MAT.
SEZ units faced with restrictive covenants imported from Chapter VIA and sections 10A/10B. These now restrict tax holidays to units that are not formed by splitting up, reconstruction, and clearly spell out the intent of law to provide section 10AA exemption only to “new” units, contrary to the belief held in some quarters.
ESOPs brought under FBT. The value of the fringe benefit to be determined, in accordance with a prescribed method, on the date of exercise of the option. Introduction of FBT on ESOPs likely to hit several compensation schemes, burdening employers with additional cost. The entire Fair Market Value will be the taxable value of the fringe benefit, resulting in a tax rate of 33.99 percent on such costs.
Indirect Tax
Test of Export of services made simple, instead of delivery and use outside India, the test to be “provided from India and used outside India.” This could help determine the eligibility for exemption of certain IT services with more clarity
Service tax extended to rentals on leasing of immovable property for commercial and business purposes. Introduction of service tax on commercial renting of premises to add to the costs of software companies which will be badly hit as their services are treated as “non-taxable” and hence, refund of such service tax would not be possible
Content services for on-line information and database access or retrieval services liable for Service tax
Maintenance or repair services to include software services as well
Rs.33 crore allocated for a new scheme of manpower development for the software export industry
The IT-BPO industry feedback
Budget 2007: Maintaining a fine balance
The plus side
fiscal deficit brought under control
education and healthcare given a focus
the allocation for eGovernance increased by nearly 100 percent
surcharge on Income Tax for companies with taxable income below Rs. 1 crore removed (case for hiking this limit further to Rs. 5 crores, if the objective is to really benefit all SMEs)
enabling mechanism suggested to permit Indian companies to unlock a part of their holdings in group companies for meeting their financing requirements by issue of exchangeable bonds. Specific details of this awaited
The minus side
IT companies brought under the Tax Net with the levy of FBT on ESOPs
a 2.5 percent increase in Dividend distribution tax
no attractive deals for individual tax payers (including the IT people)
new education cess (of one percent), and add on service Tax for houses being used as commercial office premises had been levied
increase in CTC per employee for the employers on account of above moves
By Vikas Kakade, CEO, Yaan eSites Ltd.
The Indian IT-BPO industries have expressed apprehension at some of the regulatory changes suggested by Budget 2007, stating that these could have a negative impact on the growth of the sectors in the years ahead.
Lathika S. Pai, CEO, Fides Global Consultants said India’s competitive edge in IT and ITES as the preferred destination for off shoring was currently being threatened by various factors including rising costs in real estate, salaries and a shortage of skilled workers. Overall the budget had not been favorable to the industry, as the cost advantage was getting severely diminished. “Factors like the talent shortage, would result in global CEOs and CIOs reconsidering their reasons for off shoring to India.
A “MAT”ter for worryNASSCOM, meanwhile was also unhappy over the proposal to extend MAT on export incomes which were exempt under Sections 10A and 10B. “This is a regressive step that withdraws the government’s commitment to provide tax incentives till 2009, on the basis of which companies have made their business plans and investment decisions. This could affect investor confidence and growth in this sector which is not only India’s biggest exporter (US$31.6 billion in 2006-07) but the biggest employer in the organized private space,” stated a Press statement released by the organization.
NASSCOM’s expectation was that the introduction of MAT would be accompanied by an extension of the STPI scheme (and Section 10A, 10B benefits) by 10 years, a move that was considered critical to sustain the growth momentum of the IT-BPO industries.
Expressing his disappointment over the imposition of MAT, Ankur Lal, CEO, Infozech Software said that it was a disincentive for the entire industry and more particularly emerging companies, that were constantly trying to garner and preserve cash to help in their growth. Lal urged NASSCOM to take up the matter with the Government and redress the situation. The opinion was reiterated by Amit Godbole, Director-Finance, BMC Software. “The Budget was a big disappointment as far as the IT Industry is concerned. The introduction of MAT, the levy of FBT on ESOPs and the levy of the Service Tax on leasing commercial space will have a significant impact on the cost structure of IT companies and adversely affect the business planning that has gone in growing operations in India,” he said.
The Proposal to extend MAT to income in respect of which the deduction was claimed under sections 10A and 10B also elicited a strong reaction from T.S.T. Ramanujam, Vice President Finance, Serviont Global Solutions.
“This is definitely a retrograde step in the Budget. This amendment has definitely been introduced too early without clarity on the sunset clause of 2009. It would have been a welcome measure if this was taken up in the year 2009 coupled with an extension of the 10 year holiday period for 10A and 10B companies.” According to Narasimha Nayak, Chief Financial Officer, California Software, the Government, through the extension of the MAT had taken away the tax holiday status of export-oriented IT units two years ahead of the originally planned expiry date. “Even if the Government had not extended the scheme, it need not have tinkered further and dealt an additional blow to the industry by extending MAT. Such moves will make it difficult for any industry to believe in the validity of the tax holiday, introduced in the future. The additional cess of one percent has in fact increased the burden on almost all Infotech companies,” he stated.
Industry Wish List
Continuation of 10A tax holiday for at least another five years.
Extension of the STPI tax holiday beyond 2009 for aperiod of 10 years or more that is coterminous with the current IT-SEZscheme.
Change in the norm of area notified for the SEZ regime (1 mn sq ft built up area in a single location), which is not feasible for SME companies
Assessing officers to avoid absurd interpretations of the term Export turnover U/s Sec10B and avoid using any and all pretexts to disallow some or all part of export profits from software sector which are otherwise exempt u/10B.
Removal of ambiguities related to explanations of Section 10B that are used out of context by assessing officers and without proper application /understanding of the rules.
The other loopholesThe IT-BPO sectors also voiced concern over the selective pass-through status for venture funds and service tax on property lease, steps that would affect SMEs and start-ups. According to NASSCOM, the pass-through did not seem to include the BPO sector (including animation, gaming and KPO), a segment which accounted for about three-fourths of the IT sector venture funding.
It was stated that the higher costs for leased space would adversely affect SMEs, which did not own office space, and reduce the competitiveness of India vis-à-vis other destinations. A change proposed with regard to ESOPs was not in keeping with international practices. The tax needed to be payable by the employee only at the time of exercising the option.
It was also felt that issues like transfer pricing and the method of computation of export turnover had not been addressed by the Budget. The former was iof particular significance with regard to attracting foreign investments in this sector.
On a more optimistic noteOn the positive side, the IT-BPO industries welcomed the Government’s thrust on education, through the Sarva Shiksha Abhiyan and the ambitious new scheme of awarding one lakh fellowships to bright students every year, for secondary and higher secondary education. The IT industry was also happy about the creation of the Vocational Education Mission, the Upgradation of the ITIs and pleased about the Rs. 33 crore allocation for software manpower development.
Commenting on the boost provided to education and healthcare through Budget 2007, Krishan Dhawan, Managing Director, Oracle India said, it was a welcome move and important for the overall development of the economy.
“Education, as I have often said, needs greater attention, as this is where the future lies. Proper training and skill sets need to be imparted to the youth, if India has to attain and maintain a top rank in the global digital economy,” Dhawan said.
Dhawan also applauded the Government for its continued interest in supporting e-governance initiatives. “The increased budget allocation for e-governance at the center and state levels is a step in the right direction. Also, targeted funds allocated for computerization of the Public Distribution System can aide in enhancing the country’s food supply chain to ensure the supplies reach where they are most needed,” he added.
Infrastructure Scenario
Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6301
Credit for India’s rapid growth in the IT software services and ITES/BPO domains must go in part to the availability of a robust infrastructure (telecom, power and Roads) in the country. Relevant telecom facilities are an important prerequisite for the success of the software industry and over the years, the Government has taken steps to ensure that telecom remains a priority area.
Similarly, regular, reliable, uninterrupted power, a major necessity for running IT software and services businesses, has also received substantial attention from the Government. Recent steps to privatize the distribution of power and bring in greater efficiencies and customer centricity in the market, have been welcomed by the ICT industry.
The overall roads and highways scenario in India has also witnessed major improvements over the last few years. Most cities and fist and second tier towns are connected and interlinked to each other. Major investments have gone into the development of highways, both on the side of the central and state Governments. Clearly, the Indian Government has understood the importance of infrastructure to industries such as IT and created a conducive environment for its development and expansion.
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