Question : BPO FIRMS IN I.T. SECTOR

:-

(a) whether the Business Process Outsourcing (BPO) firms are also operating in the areas of I.T. Sector as reported in the Economic Times dated March 11, 2003;

(b) if so, the facts thereof; and

(c) the steps proposed to be taken to avoid competition in this field?

Answer given by the minister

MINISTER OF STATE FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY(SU THIRUNAVUKKARASAR)

(a), (b) and (c): Both IT Service and IT enabled sector are covered under STP scheme. Depending on the market conditions and technical expertise a Software Exporting unit may operate/move to one of the other or both the sectors. The competition amongst IT Service and IT enabled sector would be according to the market drivers in North America, European and other world markets. Export from both these sectors are growing in the face of global competition and no need is felt to put any restriction on free competition amongst these units.