Increased IT adoption by user organizations: Nasscom report

NASSCOM, the trade body and the chamber of commerce for the IT software and services industry in India, announced the key findings of its 'IT User Survey 2005' and the winners of the 'India IT User Awards 2005'. Kiran Karnik, President, NASSCOM noted, “Increasing IT usage and adoption within the country is enhancing competitiveness of the Indian economy and the user community. Today, we see Indian businesses becoming increasingly competitive in the global market, using IT as a key enabler. Our survey indicates the trend among Indian IT vendors to increase their focus on the domestic market. Also, the user industry in India is outsourcing parts or entire IT infrastructure to specialized vendors, which requires world class standards, and best practices.” 



He noted that while there is increased IT adoption by user organizations in the country, both at an operational and advanced levels, the ongoing phase of investment by the industry will need a gestation period to exhibit its full potential. This will ensure maximum return on investments for organizations. 



The industry will need to continue the existing focus on sustaining this growth curve through investments and adoption. “We hope the government will also become a major user of IT through the e-governance program. A favorable policy and taxation regime will give a boost to greater IT usage in the country with benefits to efficiency, productivity and employment”, Karnik added. 



Recognizing the growing importance and potential of the domestic market, NASSCOM has been focusing on this segment, which is expected to reach $4.3 billion in 2005-06, from the $3.5 billion in 2004-05. A milestone in this direction has been the creation of the Domestic IT Market Committee, and the commissioning of an in-depth analysis of the Domestic Services (IT-ITES) market opportunity report, in 2006. 



Nasscom's annual survey seeks to assess IT usage among key industry verticals, and recognize leaders thereby creating a benchmark within verticals and the domestic user industry. Meanwhile, Nasscom also announced the appointment of B Ramalinga Raju, Founder and Chairman of Satyam

Computer Services, as the Chairman of NASSCOM for the year 2006-07. Lakshmi Narayanan, President and CEO, Cognizant Technology Solutions has been appointed Vice Chairman, NASSCOM for the current year.