IT Ministry Identifies 8 Key Issues Hindering Country’s IT Exports

The Ministry of Information and Technology and Telecommunication has identified eight issues that are hindering the country’s IT exports.

According to the Ministry of IT and Telecom, the inconsistency of policies, taxation issues, banking hurdles, ease of travel, lack of skilled HR, lack of IT-ready infrastructure, limited access to capital, and limited international marketing, branding, promotion, and business development are key issues of the IT sector in the country.

Eight Key Issues

1. Inconsistency in government policies is the biggest hindrance to the growth of the IT sector. Inconsistency of policies has eroded the confidence of local and international investors, customers, and partners not to mention the trade bodies and government entities. Frequent changes in taxation policy on IT export proceeds are one such example.
2. Taxation issues faced by the IT & ITeS industry are causing unnecessary hurdles and challenges for the business as well as freelancers.
3. Banking hurdles and unnecessary restrictions are discouraging exports from using formal banking channels and encouraging the retention of export earnings abroad.
4. Ease of travel is a necessity to ensure the growth of IT and ITeS exports for both inbound travel of investors, customers, partners, and employees from offices abroad and outbound travel of IT executives and professionals. The lack of skilled human resources is an ongoing challenge for the IT and ITeS industry.
5. With growing international demand, finding the human resource with the right skill set and experience is difficult. The gap between the demand for skilled human resources in the IT industry and the supply of IT graduates has significantly increased.
6. The lack of IT-ready infrastructure at affordable rates in major cities, as well as secondary and tertiary cities, is restricting the growth of the IT and ITeS industry and resultantly exports.
7. Access to capital is necessary for IT businesses including expanding their operations at both local and international levels. The majority of IT businesses are SMEs and lack the capital to grow their business.
8. Limited international marketing, branding, promotion, and business development are not enough to become a preferred outsourcing destination in the world. The programs of international marketing and export enhancement need to be expanded at least tenfold with appropriate funding to meet the target of US $ 15 billion in IT exports within five years.