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Nasscom Hit By Big Boys Bias Charge

Resentment is building up within the $180 billion Indian software industry’s representative body NASSCOM, after last month’s biennial elections to its executive council — the apex decision making body of trade body, saw more than half the industry going unpresented. Adding credence to the favoritism or bias towards the Big Boys of the trade, 80% of those in the outgoing Coucil were re-elected with a strong representation from MNC biggies leaving products and SMEs out among others.

Nasscom is now learnt to be working to add 7 more EC members, ostensibly to assuage the ruffled feathers.

MNCs including Intel, IBM, Accenture, WNS and even Amazon (Web Services), a new entrant, have got a dominant presence in EC. Nasscom members allege that weightage of votes based on revenue and employment generated was unfair to the large section of trade, including fledgling businesses and product companies.

“The dominant presence of MNCs along with Indian biggies – TCS, Infosys and Wipro in the EC, has made Nasscom a Big Boys Club. That perception should change, since the present representation does not reflect the expanded offerings of the industry, which has moved much beyond services,” a Nasscom member said. “They had an opportunity for course correction and broad base the representation to EC, which they have not done,” the member added.

“Nasscom was founded to promote home grown companies. Had companies like Microsoft been part of the founding team, would Indian IT industry have achieved such a stupendous growth as it has done over the last two decades,” another member asked. “There are emerging product companies like Zoho that are changing the dynamics of the industry. But, they go unrepresented,” the member lamented.

According to a cross section of members, of the 18 elected to EC, close to 75% represent MNCs, while representation of Indian companies has shrunk significantly. Is Nasscom really inclusive?, they ask. “While industry has become diverse with start-ups, SMEs, product companies, engineering services, e-commerce and captives, Nasscom still seems to be a cozy club of services segment,” a member quipped.

In the case of states too, Tamil Nadu, Telangana, Andhra Pradesh, Kerala and Bengal together account for 50% of Indian IT industry’s export revenue, yet does not have a single member from any of these in the EC.

But, not all seem to be inclined towards this ‘desi companies’ representative mode. “The reality is that it’s the MNCs, who are becoming more aggressive today, spending heavily, hiring strongly and even paying the best salaries. They are hiring Indian engineers in greater numbers and hence there is no reason for Nasscom to only focus on ‘Indian’ companies,” they said.

“Of the 1,500 members eligible to vote, 700 voted and elected the 18 members, including 7 new members. (The dissenting voices place this number as merely two). Even if one sets aside the voting weightage, an analysis proved that these members would have still got elected,” Sangeetha Gupta, senior VP, Nasscom told TOI. “Beyond the 18 elected to the council, the process to nominate 7 more members to the EC is on and the process is utilized only to accommodate sectors and segments that have gone unrepresented. Even otherwise, we have several sub-sector as well as regional councils that offer scope for adequate representations to all,” she said.

“Nasscom members are serving international markets and not serving any particular state. Even if MNCs become part of EC, they promote only Nasscom’s and industry’s agenda and not pedal their own interests,” Gupta said. Nasscom, she said was very conscious of the changing nature of the industry and the revamped council will reflect the change. “Every city and segment will get covered in some way or the other. It is unfair to call Nasscom as Big Boys Club, because the large companies mostly accuse us of favouring only the smaller companies,” she added.―India Finance News

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