[clari.nb.trends] India Technology Industry Follows Familiar Path

newsbytes@clarinet.com (02/04/90)

NEW DELHI, INDIA, 1990 JAN 31 (NB) -- India's budding information
technology industry is experiencing the same kind of shake-up and
reorganization that has afflicted other nations rushing to enter
the information age.

Like others in the region, India's businessmen have embraced with
open arms the advantages offered by automation, but this in turn
has led to complications.

Many new companies were set up during the eighties to make full
use of the opportunities created by the demand for equipment and
software. Fly-by-night operations became common and a thriving
industry of assemblers, as opposed to genuine original
manufacturers sprang up.

Now things are changing. Many of the older companies have gone to
the wall, to be replaced by firms run and staffed by properly
qualified technologists. Big business is entering the game and
some long-established concerns are reorganizing or simply going
out of business.

One company to enter the field to capitalize on the changes
taking place is petrochemical conglomerate Reliance, which has
gone into partnership with Wang Laboratories to manufacture
computers.

Even the big boys are feeling the pressure. Sweden's Facit Asia
planned to manufacture electronic typewriters in India, but has
now decided to pull out of the venture. Others are following
suit, but observers see the current process as an example of the
reorganization of the IT industry already seen in other parts of
the world, not least in nearby Asian countries, where it has come
of age after a raucous but unsatisfactory youth.

(Norman Wingrove/19900302)