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'European debt crisis won't hamper Indian IT business'

business Updated: May 22, 2010 18:38 IST

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The European debt crisis would not hamper the Indian Information Technology business and the current (IT) environment is expected to be much stronger than in 2009, a top official of US based Nasdaq listed IT firm Syntel International said on Saturday.

'I dont expect it (debt crisis) to hamper..I expect the environment to be much stronger than in 2009. However, it will take some time for people to reconcile with what has happened in Europe. The crisis has, however, left some question marks," Syntel International CEO and President Prashant Ranade said.

"There are some question marks about the situation in Europe....while demand is firming up, customers are thinking about releasing the projects and a cloud of uncertainity relative to Europe has got people thinking...we will just keep watching it and see how it unfolds', he said.

Syntel, he said, has posted a stronger growth in the first quarter of 2010.

Ranade was speaking to reporters at the inauguration of Syntel's second global development centre at SIPCOT-IT Park at Siruseri near here.

He said the company would invest $ 50 million to develop the Chennai facility, which has 10,000 seating capacity. "This will be one of the two major centres in India..after our Pune centre. The second phase of Chennai and Pune facilities are expected to be completed in two years", Ranade said.

To a query, he said Syntel would invest close to the same amount at Pune. Besides these two facilities, they planned to set up two facilities each in Tirunelveli and Madurai,he said.

Syntel International General Manager and Administration Head N Saravanan said Electronics Corporation of India has alloted 25 acres for the Madurai and Tirunelveli facilities.

"It is in the initial stage.. we will be going there as a co-developer (along with ELCOT)", he said.

Tamil Nadu Deputy Chief Minister MK Stalin,who unveiled a plaque to mark inauguration of the facility,welcomed Syntel's idea of setting up facilities in Madurai and Tirunelveli, at a time when Tamil Nadu planned expand its IT business in Tier II and III cities.

Citing a department of Information Technology report, he said the industry has grown from $ 10.2 billion in 2001-02 to $ 58.7 billion, with a CAGR of 26.9 per cent.

He called upon IT companies to work with the Government in implementing the recently announced e-waste policy.

Early this month, Tamil Nadu IT Minister Poongothai announced the policy in the assembly. It would work towards minimising e-waste generation, utilise generated e-waste for beneficial purposes through reuse and recycling and ensure environmentally sound disposal of residual waste.