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'UK is the gateway for Indian software engineers to Europe'

At a time when the most favoured land among the Indian software engineers -- USA -- is going through troubled times from economic downturn to terror attacks, the UK Government is pulling all stops to attract Indian IT companies to make its idyllic country a gateway to the emerging markets in Europe.

In a bid to demonstrate how committed the Blair Government is in facilitating Indian tech companies set shop anywhere in the UK, it had rushed its e-commerce & competitiveness minister to India this week for a whirlwind tour of the sub-continent, including a two-day trip to Bangalore, the technology hub of India, for making a case why Indian IT industries should start seriously looking at Great Britain as the next favourite destination (after US) for prospective business.

The 34-year-old Labour MP scheduled his first-ever one-week trip to India to coincide with the ongoing five-day BangaloreIT.COM 2001, India's largest technology event where UK had a pavilion.

In the midst of his hectic schedule that included whistle-stop visits to global software companies like Infosys and Wipro in the Electronics' City on the outskirts of Bangalore, Douglas Alexander spoke to Fakir Chand. Excerpts:

Can you give an update on the progress of technology and trade co-operation between the two countries since the visit of your predecessor Patricia Hewitt to India and Bangalore around this time last year.

A lot has happened in spite of the tech meltdown and the global recession hitting even Great Britain over the year.

Since Patricia's visit, or as a result of it, we have witnessed a 28 per cent growth in the bilateral trade between the two countries, which is worth $8 billion, with a major share of it coming from the information and communication technologies sector.

As one of the largest cumulative investors in India, the British government attaches special importance to its relationship with the partner country.

A large number of British companies are upbeat about the future of the Indian economy, particularly in the ICE sector. Many London-based companies such as Logica and Genisys are making a beeline to Bangalore, which has been ranked by the United Nations Development Program report as one of the global technology hubs.

What has been the response of the Indian companies to your road shows and promos -- Invest in UK?

The investment flow is not in one direction as several Indian firms have started investing in the UK, especially in the ICT areas. Of about 250 Indian companies present in our country, as many as 100 are from the technology sector.

About 20 ICE firms have come during 2000-01, and 10 more have lined up this year till date.

IT majors like TCS, Wipro, and Infosys have set up huge software development facilities in and around London to make their mark in the European market.

In fact, I am here with a number of officials and a business delegation to impress upon the Indian firms, particularly in the ICE sector the advantage of making Britain their strategic location for foraying into Europe in a big way.

It's high time they start looking beyond the US because the Internet and the convergence in multiple technologies have made the demand for high-quality Indian software engineers shoot up even in Europe.

What incentives do you offer to prospective Indian companies keen to set shop in the UK?

Being one of the largest English-speaking nations in Asia, it's advantage India over other countries of this region.

We provide a modern, high-tech investor friendly environment for overseas companies. Even in these difficult times, we are determined to conduct a 'business as usual' policy for a win-win situation to prospective investors.

In terms of infrastructure, we have one of the most deregulated telecom structures; (one of) the world's most developed e-business environments; a thriving indigenous software industry, and skilled workforce.

As a matter of fact we are a springboard or a launching pad for Indian IT or other industries to market their wares in other European countries, which face an acute shortage of skilled workers. Geographically, we are centrally located to be a gateway to developed countries like France, Germany, Spain, Italy, etc.

How is UK's ICE industry faring in Europe?

As the UK minister for e-Commerce, it is my job to ensure that our country maintains its place as a leading global player in software, hardware, and IT-enabled services.

In the comity of nations, UK has emerged as a key territory for IT investments. You will be surprised to know that among all the European nations, Britain has consistently outperformed European average growth rates.

The European software and computer services sector currently accounts for a quarter of the world IT market, and growing faster than the US and Japan.

While Europe as a whole grew by 10.8 per cent to gross a turnover of $125 billion last year, UK alone registered a growth rate of 9.5 per cent, and is projected to average around 11 per cent during 2001-2004, while the European market is estimated to generate a business of $200 billion by 2004.

Britain also spends one-fourth of its GDP on IT and is itself one of the largest market for IT products and services in Europe along with Germany and France.

As one of the fastest growing e-commerce markets in the world with 1.9 million small and medium enterprises actually trading online, our track record in attracting inward investment is equally impressive. For instance, Microsoft's first overseas R&D facility outside the US is located in Great Britain. IBM too has a large presence with manufacturing and R&D facility in Scotland, employing 20,000 people.

Since the European Union has become the world's largest single market, and is set to expand by 2007 with the addition of 11 new member countries, the UK is well-positioned to serve as an ideal platform for Indian companies to tap the potential of a 100-million people.

Is your government extending any privilege like green cards?

Over the last couple of years, the UK government had initiated several measures to encourage professionals from the sub-continent to come to Britain.

In a bid to attract more skilled workforce in the ICE domain, the British High Commission in Delhi and its consulates in Bombay, Calcutta, and Madras will give 2-year visas with multiple entry permits to shuttle between India and the UK.

You will also be surprised to know that of the total number of foreign nationals granted permission to enter the UK, a whopping 63 per cent of them were Indians, majority of them with IT skills. A work permit is issued within 10 days flat. What's more, business visitors and students can obtain their visas on the same day.

We are also toying with the idea of issuing green cards to Indian professionals on the lines of the US and Germany for ensuring that they would consider Britain as good a place as the US and make it their second home.

What is the potential for Indian SMEs in UK?

The potential for leveraging the skills of Indian SMEs is huge as they can not only bring in their technologies for developing applications, but also enhance their use at multiple levels.

In fact, about 80 per cent of businesses in the UK have a website, up by 66 per cent from last year. Similarly, around 87 per cent of businesses are conducted online across the country.

Are you not encouraging brain drain from Indian by wooing Indian companies to set shop in your country?

Not exactly. It is up to the Indian firms to decide how long they would like to locate their IT whizkids for onsite work.

The multiple entry permits enables them to touch base frequently. If they feel they should go back to India, they are most welcome as other set of engineers can replace them.

We are looking for is more Indian investments with domain expertise for adding value to our existing technology portfolio. The Internet and web technologies are so pervasive that they do not call for mass migration of Indian brains.

Most of the work can be accomplished right here as majority of the Indian tech companies do for their US customers as part of outsourcing or offshore development work.

Finally, will your government be outsourcing from Indian ICE companies?

The UK government contracts are all open tender. Indian technology companies can bid alongside other firms to grab a big share of the cake. We are a diverse and enterprising nation. As my Prime Minister Tony Blair has recently said, Great Britain is a nation that combines a strong sense of values with a willingness to adapt.

We have also learned that welcoming new ideas and investment from overseas enhances our position in the world and brings significant rewards to those who make a commitment to Britain.

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