The results show a clear mandate for continuing with the UPA. There is a clear signal that reforms have to continue, said S Golapakrishnan, CEO, Infosys Technologies. On his wish list are several e-governance projects, that will give a boost to not only the IT companies, which are seeing a cut in IT budgets globally, but will also improve the standards of governance in the country.
However, one of the biggest concerns for the industry at the moment is dealing with the rising protectionism in its biggest market which is the US. There is a serious need for negotiations as the IT industrys biggest customer America is turning protectionist and we cant be seen giving in, said Raman Roy, chairman and managing director, Quatrro BPO Solutions.
Pramod Bhasin, chairman of the IT industry body Nasscom said that what is needed are educational reforms, efforts on extending the tax breaks for the industry, and some engagement on the policy side, which is how to deal with protectionism which is looming large over the industry.
Another concern in these times of distress for the industry is the STPI scheme, which is a 10-year tax holiday for the industry going away in 2010. Bhasin said that as an industry body, Nasscom is going to lobby with the government for its extension as it provides as level playing field against competition from other geographies like China.
The IT sector, is also expecting some investments in the infrastructure space from some policy changes. Ganesh Natarajan, vice-chairman and CEO of Zensar Technologies and ex-chairman of Nasscom said, The new government will enable new investments that the corporate sector can take advantage of. It needs to bring in focus on infrastructure and continuity of STPI scheme.
The government should bring in bold policies in the areas of trade, commerce and banking so that credit flows freely in the economy and capital is available for companies who want to raise money to grow business especially to SMEs, said Indranil Deb, principal, Mobius Strip Capital Advisors.