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Advantage of India

MT Services are a strategic and imperative fit for India as it offers immense jobs opportunities and ability to earn foreign exchange. A majority of the State Governments in India are offering incentives and infrastructure for setting up these services. Central Government has provided Income Tax exemption to profits from export of these services.

Vocational colleges have started teaching the skills for these services. Moreover, setting up of these services is not capital intensive and is entrepreneur driven. India has emerged as the preferred Global Destination and the hub of MT Services. Amongst others, it offers cost and quality advantages plus much more:

• A virtual 12-hour time zone difference between India and USA offers cost and time savings.
• A huge pool of English speaking and computer literate graduate workforce who can continue to cater to the growing demand of professionals for MT Services.
• With more than 115 ISO 9000 certified and four SEI Level 5 Software Companies, India offers the ultimate quality advantage with relatively less costs.
• India enjoys very strong brand equity in major markets, thanks to its growing and globally competitive software industry.
• A special thrust has been given by Department of Telecommunications, Government of India with reduction in prices of High Speed Datacom lease circuits.
• Thrust by Government of India by providing Income Tax exemption to profits from exports of MT Services.
• Central and State Governments as well as private sector are setting up state-of-the-art infrastructure for MT Services including IT Habitats

Nasscom has constituted a Vision Group for IT Enabled Services (MT is classified as an IT Enabled service in India). This is a special forum mandated with the task of identifying opportunity segments in the areas of IT Enabled Services. This Nasscom group would also devise segment specific strategies for market development, encouraging entrepreneurship and positioning India as a global hub for IT Enabled Services.

The following table amply projects present status and potential of employment and earnings opportunities from MT Services -

Nasscom is following a two pronged strategy for India’s success in I.T. Enabled Services. The first part involves continuous lobby with Government of India for removing procedural and other bottlenecks. Some of the demands include: income tax exemption; single window clearance at Department of Telecommunication; global telecom infrastructure in India; lowering of tariff and more availability of venture capital and marketing funds. In this regard, Nasscom’s lobby was very successful to get income tax exemption to profits derived from most of the I.T. Enabled Services under Section 80 HHE of the Income Tax Act.

The second strategy involves awareness, marketing as well as catalysing quality training of workforce. This is being done by organizing meaningful conferences and workshops and publishing useful publications for enthusiastic entrepreneurs. Nasscom has already mounted a campaign for marketing India’s advantage in this sector. The slogan at Nasscom is `Move Work to India.