Saturday, July 19, 2008


Review of 'Technology' for the week gone by
20 Jul, 2008, 0000 hrs IST, ET Bureau
India mature spot for offshore IT services

India has emerged as the most matured location for offshored IT and BPO services, though this dominance might be chipping away given the rising costs. Everest Research Institute in its report “Global Sourcing—Market Vista Q1 2008” said that the cost inflation in Indian cities is exceeding the 2007 levels and this has increased the risk of labour arbitrage closing very rapidly.

There has been a constant threat of newer locations such as China, Philippines and Eastern Europe, which are challenging the dominance of India. Everest said that players are continuing to expand and the competitive intensity for talent remains unabated. Further the consumer price at an all- time high since 2004 is potentially creating inflationary pressure on wages.

Though, there has been certain mitigating factors both from the government and industry which is leading to the growth of the sector. The government recently extended the STPI scheme by one more year and this could give some breathing space to the IT industry.

MAIT proposes separate legislation

IT products manufacturers on Thursday proposed inclusion of a legislation exclusively for e-waste management in the existing waste management policy of the Ministry of Environment and Forest. India generated 3.3 lakh tonnes of e-waste in 2007 and is going to touch 4.7 lakh tonnes by 2011, therefore there is a great need for an inclusive eco-friendly recycling process, said a study released by MAIT-GTZ.

"Looking at the current scenario of the growing e-wastes in the country, I think the government should look at framing separate guidelines for the management and recycle of these wastes," said Manufacturers' Association for Information Technology (MAIT) Executive Director Vinnie Mehta.

At present, there are separate policies for bio-medical wastes and municipal solid wastes under the umbrella of hazardous wastes (management and handling) rule, but there is no separate regulation for recycle and management of e-wastes, whereas the wastes from electronic goods are growing at a faster pace, said the study.

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