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Our Bureau

HYDERABAD, Dec. 2

CHANGES in the IT sector over the last year, which witnessed partial shakeout in the industry has thrown up many business challenges.

This has led to the industry bracing up to these by even bidding for projects as consortium of companies leveraging each other's strengths.

During the last year or so, there were instances of small IT companies teaming up to bid for projects and interestingly around 20 small and medium enterprises capable of delivering world class products have also surfaced, according to Hyderabad Software Exporters Association (Hysea), a representative body of software companies.

The President of Hysea, Mr Shakti Sagar, and other members of the association, addressing a press conference here on Monday, said that Hysea, which commands a membership of about 200 IT companies, has witnessed its members scaling up the value chain and some of them have carved out a niche in both services as also IT-enabled services sector.

The Hysea members opined that the country needs at least three or four successful product companies to scale up the value chain and move on to the next level currently enjoyed by a select few such as Israel and Ireland.

Among a series of initiatives, Hysea has embarked on the process to drill down the issue of quality and intellectual property rights as these two have the potential to play a differentiating role on the sector. The association has taken upon itself to work with its members to facilitate in the quality certification process.

When queried on the number of active members, Hysea representatives said that out of 200 member companies, about 25 per cent had become inactive. On the other hand out of about 1,100 companies registered with the Software Technology Parks of India, Hyderabad, around 800 were active. However, they said that the industry was witness to some consolidation.

The Chairman and Chief Executive Officer of Vanenberg group, Mr Jan Baan, has been invited to take part in a quality-related seminar, slated for this week, and felicitate companies that have excelled in the business, they said.

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