Carr strengthens India research ties

AUSTRALIAN Innovation Minister Kim Carr has met with his Indian counterpart and says the two countries are working toward strengthening science and technology relationships.

Senator Carr met the Indian Minister for Science and Technology and Earth Sciences Kapil Sibal in Melbourne last week to discuss the bilateral relations between the two countries.

These include forthcoming jointly-funded workshops the Australia-India Strategic Research Fund.

“Australia and India share many common areas of research interest and there are many exciting and world leading projects currently taking place between the two countries that will provide benefits to both our nations,” Senator Carr said.

“As part of our commitment to mutually beneficial research the Australian Government will support two collaborative workshops in emerging fields of biotechnology where we have complementary strengths,” he said.

The Indian and Australian governments have already committed to supporting two collaborative workshops in emerging fields of biotechnology where we have complementary strengths.

These include a joint workshop next month sharing developments in the research fields of nutraceuticals and functional foods, and another workshop on commercialised transgenic crops as well as those under development.

"The Australian Government remains committed to the relationship with India, particularly through our largest bilateral research arrangement - the Australia-India Strategic Research Fund.”

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Now India’s turn for skills shortage pain

FOR years Indian IT services companies have attracted customers to the sub-continent by undercutting global rivals because of their access to a seemingly limitless supply of high-skilled tech workers.

Now Indian firms are facing some of the skill shortage pain their developed economy customers have suffered for years.

Financial services firm Dun & Bradstreet has issued a report profiling 184 of India’s top technology companies, finding their biggest challenge to continued growth will be the availability of skilled human resources.

Wages growth is expected to become a major challenge for the industry in India, just as it is already a challenge in developed economies.

The Indian IT industry last year generated about US$47.8 billion (A$58.6 billion) in revenue and is expected to grow to US$90 billion (A$110.5 billion) by 2010.

The D&B report, titled “India’s Top IT Companies 2007” found most Indian tech firms reported employee costs of between 35 per cent and 45 per cent of revenues.

Because employee costs represented such a large portion of revenue, any significant rise in those costs would put strong pressure on margins, the report found.

A growing gap between skills supply and demand, high attrition and turnover rates and the fast increasing participation of global companies in the Indian domestic market were all factors affecting IT skills costs.

“Under these circumstances, managing the employee cost will remain a key challenge for Indian IT industry. It is believed that Indian IT firms will continue to face an average wage inflation of 10-20 per cent annually at various levels,” the report says.

The Indian tech industry’s contribution to the country’s GDP had grown from 1.2 per cent in 1999-2000 to 4.8 per cent in the 2006 financial year, and would break through five per cent this year, Dun & Bradstreet India chief executive Manoj Vaish said.

“The Indian IT Industry has emerged as the flagship of Brand India across the world, and continues to grow at a rapid pace,” Mr Vaish said.

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