Most of the Small and Medium Enterprises (SMEs) in the Information Technology (IT) sector go unnoticed when it comes to big deals. So the Department of IT (DIT) is planning to introduce a regulation that would reserve 20 per cent of the e-government deals for SMEs. “We are creating a mechanism to give work to SMEs. This would be included in the proposal,” says Shankar Aggarwal, joint secretary at DIT. Even now 20-30 per cent of the work is outsourced to SMEs by the bigger IT firms, but it is not systematic, he says.
Experts believe the quality of execution might be affected considering SMEs’ constraints of scale and capability. In sectors such as manufacturing and textile where there is reservation for SMEs, the quality of products have deteriorated. New rules will mean firms such as Infosys, TCS and Wipro will have to formally show that a portion of the project has been outsourced to SMEs.
(This story was published in Businessworld Issue Dated 15-02-2010)
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Most of the Small and Medium Enterprises (SMEs) in the Information Technology (IT) sector go unnoticed when it comes to big deals