Indian IT industry should set new world standards: NASSCOM

Bangalore, Sep 6 (UNI) The Indian IT industry, which had established itself by meeting the global quality standards, should go a step further and create new world standards, NASSCOM President Kiran Karnik opined today.

Addressing the ''NASSCOM Quality Summit-2006: Setting Benchmarks in Global Outsourcing,'' here he said ''because India has evolved, we want to see it go to the next stage of setting new world standards.'' However, maturity models for human resources would have to be streamlined further, he said and suggested that the IT industry could adopt the standard models like Capacity Monitoring model developed by Carnegie Melon University, US.

Mr Karnik said the Indian IT sector should reach a place where it would be in a position to define the standard.

Expressing happiness over Indian companies doing better in terms of profitability compared to companies in advanced countries like the US, he said in cost and efficiency equation they were one better and indications showed that the companies would continue to maintain the level of profitability.

''Data says that most of the big and some medium scale IT industries are doing well in terms of profitability, despite the cost of human resources going up. Consolidation and mergers by IT majors may not mean that they can improve their performance.

Inorganic merger of big foreign companies may dilute their margin.

Different culture will be different to manage. That is the reason we are seeing mergers of only small time foreign companies with Indian majors,'' he explained.

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