'Digi tech to propel global tech services mkt to $4 tn by 2025'

C P Gurnani, the Managing Director and Chief Executive Officer of Tech Mahindra, and who is part of the National Association of Software and Services Companies (Nasscom) Executive Council, took charge as Chairman on April 6, 2016. As Nasscom Chairman for 2016-17, Gurnani will lead and assist Nasscom in catalysing the growth of the Indian technology and services industry and enabling the fulfillment of its future goals and aspirations. In an interaction with Narayan Kulkarni of Deccan Herald, he shares his plans for Nasscom during his tenure. Excerpts:

What is the current status of the IT industry in India?

The Indian technology industry is a global powerhouse today, and its impact on India has been remarkable impacting India through job creation, foreign exchange, exports and positioned India as global IT-BPM destination while creating an inclusive and diverse work environment. The industry revenues (including hardware and eCommerce) aggregated $146 billion in FY2015. The sector continues to be the largest GDP contributor (9.5%) and private sector employer (3.5 million). India is also maturing to become the Silicon Valley of the developing world with more than 4,200 startups, which makes us the third largest startup community in the world. Nasscom has forecasted a growth guidance of 10-12% for 2016-17 and is confident that the industry will grow further.

What are the challenges before the industry?
The sector has witnessed growth despite the various issues impacting the industry such as the rise in fees for the H1-B Visa in the US, lack of job opportunities, volatility in the financial markets and protectionism. Even then, the sector has been driven by the rise of the modern connected customer, and connected enterprise. Digital technologies will propel the addressable market for global technology services to $4 trillion by 2025, and providers who understand new technologies will find it easier to establish leadership in the future.

The Centre’s new Digital India has open up a lot of avenues. Your views on this...
The Digital India plan aims at providing digital infrastructure as a utility to every individual, delivering governance and services on demand and enabling the digital empowerment of citizens. Digital infrastructure as a utility to every citizen, governance and services on demand, and digital empowerment of citizens has been identified as the three main focus areas. The adoption of technology across key sectors like financial services, healthcare, agriculture, energy, infrastructure and education will provide an additional impact of $550 billion to $1 trillion on the Indian economy annually by 2025.The Digital India programme aims to transform India into an IT-enabled society and this ties in well with Nasscom’s own vision of ‘Connect, Collaborate and Co-create’.

What programmes does Nasscom have to build India as a digital and innovation hub?
The rising digital quotient of the country has transformed the way we live and communicate. In the past two years, the government has initiated measures to advance communication infrastructure, enhance connectivity and drive internet uptake. The IT sector continues to develop capabilities around traditional and emerging markets, verticals and customer segments, expand global delivery presence, and increase focus on high value services including product development. Nasscom has recommended regulations that will help reducing business friction and introduce policies that bring about an ease in processes of investment, IPO and taxation. Nasscom, along with DSCI, has announced the launch of the Nasscom Cyber Security Task Force which aims to build India as a global hub for providing cyber security solutions, developing cyber security R&D plan and develop a skilled workforce of cyber security experts. Nasscom also signed an MoU with Symantec for building cyber security skills to develop world-class skilled and certified professionals. Sector Skill Council (SSC) Nasscom and DSCI along with Symantec will focus on developing five prioritised job roles in cyber security along with a master training programme.

What are your plans to enhance global trade initiatives to counter protectionist sentiments?  
2015 witnessed Nasscom’s partnership with various countries including Kenya and USA to showcase innovative products and services and to bring together thought leaders across the entire ICT value chain to discuss solutions to regulatory and business issues. Nasscom and TiE Silicon Valley signed a MoU to facilitate a startup exchange and collaboration programme for entrepreneurs of India and USA and Nasscom along with Telecom Equipment & Services Export Promotion Council (TEPC) organised The Indo-Africa ICT Summit 2015, a two-day conference and exhibition in Nairobi, Kenya. Indian companies are beginning to expand across the world, with the largest companies becoming significant players in the global marketplace and Nasscom is leveraging its existing partnerships, collaborations and MoUs with governments, industry associations and customer organisations the world over to raise awareness about the benefits they can gain by engaging with the Indian IT-BPO industry, especially in the area of Global Sourcing. Nasscom will be also laying more emphasis on creating IT leaders of tomorrow and the first step to the same will be taking the Nasscom India Leadership Forum to a global platform.

Your plans for Nasscom for the year 2016-17...
We are looking at charting out a plan for the industry’s vision. The focus this year will be on niche opportunity areas like IoT, Cybersecurity, Analytics and SaaS. We are also looking at expanding and nurturing the startup initiative through focused interventions 2020 and business connect. There is a need to build programmes that showcase how domestic technology adoption can accelerate India’s transformation. With the implementation of the Digital India initiative, there is greater stress on building India as a digital and innovation hub. Training will also be a major focus this year so that we make sure the talent is industry-ready.