Launching a Nasscom initiative — “Achieving Excellence through 360 degree approach” as part of “e-revolution 2007 conference” organised jointly by Chandigarh administration and Governments of Punjab and Haryana here,  Mr Narayanan said IT companies in future would be moving to places where talent is available.
“Human talent is key asset in the global market and companies want to leverage talent across the world which remained in short supply”, he said.
Need to change
He regretted that only 25 per cent of graduates passing out in India in science and engineering fields were employable by the industry. “It has to change. The government, the industry and academic institutions have to develop synergies to train the huge army of unemployable graduates which remains a challenge”, he observed.
Further, Mr Narayanan pointed out that India’s Tier-II cities had great opportunity to participate in the IT revolution since Tier-I cities like Bangalore, Chennai and Hyderabad were already facing infrastructural hassles. Though India was still a leader in IT software and BPO sectors, the industry needs to shore up capacity to sustain the momentum., he added The two-day e-revolution conference was inaugurated by Chandigarh Administrator & Punjab Governor Gen (retd) S F Rodrigues.
Pointing out that the revenue per employee might shrink in view of rupee appreciation against dollar, Mr Narayanan said “IT companies are growing and they are hiring more and more people but the margin per employee may dip due to weakening of dollar.”
Growth rate
Mr Narayanan said that in such a situation, the Centre should continue with incentives for the IT industry in order to overcome the problem.
Further, Mr Narayanan, said despite rupee’s appreciation against dollar affecting Indian IT sector, the IT industry would achieve the revenue of $ 50 billion in 2007-08.
“We are quite confident that IT software and services will achieve the target of $ 50 billion by end of this fiscal,” he averred.
Last year, the industry clocked a revenue of about $40 billion with a growth rate of 30 per cent. “In this year, the growth is expected to stay between 26-27 per cent,” he added.