'Growth in future may be 25 per cent'
Given the general slowdown across the world, do you think Indian IT will be able to maintain its robust growth rate in future?
No, I don't think the sector will be able to maintain its past growth rate in future too. At the most one may expect a growth rate of 25 per cent. Small and marginal players will close down, as they would find the going tough. Only those companies which provide high quality service at competitive rates will able to survive.
There will be a shift from onshore development to offshore development as this is a more cost effective means of developing software.
Which IT sectors are likely to see most of the growth?
IT related to banking, insurance and manufacturing are the likely areas of growth. Migration and support services will be the key growth areas. IT spending will be mainly on maintenance of existing system and fewer amounts will be spent on creating new systems due to budget constraints.
How can one maintain a competitive edge in this environment?
Competitive edge can be gained only by maintaining high standards of quality and by enhancing productivity.
What growth rate is Melstar aiming at?
We are aiming at a growth rate of 40 per cent both in turnover and in profit.
Do you have any expansion plans?
We are in the process of setting up a development centre in Chennai. We are also planning to set up centres in Mumbai and also in the UK. The total cost involved is around Rs 7.5 crore.