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IBNLive Chat: 'FBT on ESOPs unnecessary'
Published on Fri, Feb 15, 2008 at 17:08, Updated on Tue, Feb 19, 2008 at 13:18 in section
Tags: Union Budget 2008, Young India
NO FBT, PLEASE: Dr Anil Gupta, COO, Aditi Technologies, wants FBT to be scrapped this Budget.
Dr Anil Gupta: R&D is a critical area of focus for India for long-term growth. R&D already gets incentives, though we might see more. It is hard to predict.
Dev: How important is infrastructure for a company to grow?
Dr Anil Gupta: Human infrastructure is the most important area. Physical infrastructure does matter, but Indian IT industry has been able to find ways around it.
Rishi: Sir, I'm in R&D sector of Mahindra automotive. So I want to know what is the future of automobile companies of India. Can it be hit by US recession?
Dr Anil Gupta: Any industry can be hit. It is best for the employees to keep upgrading their skills.
DS: Why is it that Indian IT companies either do outsourcing/ staffing and do not get into product development? Is it because there are not enough VCs around? Or the product market is more outside India and time to market /sale would be higher?
Dr Anil Gupta: India's IT companies have a history of services business. However, India is doing well in developing products now, even though the number is modest. I believe you will see an increase.
Abhi: Will companies move outside Bangalore because of traffic issues and higher labour cost?
Dr Anil Gupta: Bangalore does have high cost and traffic issues. However, Bangalore also has great talent. I do see more growth in Tier 2 and 3 cities than in Tier 1 cities.
Adhiraj Badyal: Anil, what, according to you, are the top 3 organic growth strategies that Indian IT industry should be employing to keep its edge as #1 IT exporter intact? Do you see any strategic shift in the way we do business?
Dr Anil Gupta: 1. Focus on adding greater value to clients 2. Focus on employees as simple as that.
DS: What is current investment by the Indian Govt for R&D in terms of % with GDP? And what % do you think the Govt should invest?
Dr Anil Gupta: I do not know the exact figure, but India's investment in R&D needs to grow significantly. It should be done by the private sector, not the government.
Srinivas: What are the predictions from IT companies on the withdrawal of STPI benefits by 2009? There has been a speculation on its extension. Is it on the cards?
Dr Anil Gupta: There may be an extension for small and medium enterprises, but I am doubtful of a general extension for the entire industry.
Nalini: Several companies have quite gone public about minimal wage increase in the coming fiscal year; some companies are even 'trimming' their bench strength. Do you see this as the end of the honeymoon period for IT professionals? Is this a sign of the industry maturing?
Dr Anil Gupta: Nalini, no, I see no end to opportunity in the IT industry. You just have to keep up your skills, whether they are technical skills or soft skills. Demand for strong professionals remains as strong as ever and they will continue to see good salary growth.
Benazir: Do you think the Budget this year will be favourable to the IT/software industry due to rupee appreciation?
Dr Anil Gupta: I think the Budget will have some good news for the industry, though many requests will not be granted. The decline of dollar will (and should) create greater rationale and I believe this will influence the Finance Minister.
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