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May 12, 1999

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Germans seek Indian software

Email this story to a friend. Several German companies have wrapped up deals with Indian firms for import of computer software and others are scouting around for partners in joint venture projects.

"We are serious participants in the growth of the Indian software industry and have concrete projects in mind for which Indian partners are being sought," a cross-section of German industry representative concurred.

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They were dwelling on ways and means to expand scope of bilateral co-operation in this sector during promotional events for a visiting team of Indian software companies to Germany recently.

The promotional events at Frankfurt, Bremen, Stuttgart and Dusseldorf for the 22-member team to expand business relations with German firms, met with a particularly enthusiastic turn out in the port city of Bremen, sources said.

Although specific numbers are not available, industry captains say a number of deals have been finalised and several Indian and German firms had agreed to explore in depth the possibilities of strengthening co-operation.

The trip was organised by the Indo-German Chamber of Commerce jointly with the Regional Chambers of Commerce in Germany, the Central Association of Electrical and Electronic Manufacturers and the Information Technology Association.

Speaking at the inaugural event in Frankfurt, Indian Ambassador Ronen Sen said that Indian and German companies should explore the possibility of setting up joint ventures and strategic alliances in addition to sourcing software from India.

Noting that there is vast untapped potential in software co-operation between the countries, Sen said Indian software is suitable not only for large companies but also for small and medium enterprises, which constitute one of the most rapidly growing sectors of the German economy.

Sen pointed out that while Indian software exports have been growing exponentially, only 21 per cent of these are destined for Europe as against 58 per cent for the US.

Hence, there is much scope for further co-operation in this area.

Embassy officials say that the Indian delegation's visit to Bonn is a positive development and needs to be followed up.

Indian companies have already executed orders for German firms and have been averaging a growth rate of 160 per cent in the last few years, sources pointed out.

Though the stated goal of the delegation is to establish new contacts and explore new markets, Indian firms are also keen to reduce dependence on the US market, sources say.

Wipro and the software arms of Larsen and Toubro and Mahindras are among the delegation that includes representatives of 10 Bangalore based companies.

German industry representatives admitted that software imports from India are low despite India's ability to churn out world class software at low costs.

German industry captains pointed out during the meeting that a large number of German industrial giants are not only sourcing software from India but also setting up research centres to utilise Indian talent in cutting edge research.

Automotive giant Daimler, now Daimler Chrysler, has a research centre in Bangalore, one of its three such ones outside Germany, working at the frontiers of transportation technology.

Lufthansa has centralised worldwide reservation data processing in India and other German industrial icons such as Siemens, Bosch and Deutsche Bank have turned their Indian software operations into separate operations into separate profit centres.

During the meeting, the Indian delegation also called for reducing hurdles in way of movement of computer professionals from India.

- Compiled from the Indian media

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