ITT Ministry finds eights key issues that slowed down IT exports

The Ministry of Information and Telecommunications has identified eight issues impeding the country’s IT exports.

Consistency of policies, taxation issues, banking hurdles, ease of travel, lack of skilled HR, lack of IT-ready infrastructure, limited access to capital, and limited international marketing, branding, promotion, and business development are key issues in the country’s IT sector, according to the Ministry of IT and Telecom.

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According to the MoITT document, the most significant impediment to the growth of the IT sector is inconsistency in government policies. Policy inconsistency has eroded the trust of local and international investors, customers, and partners, not to mention trade organisations and government entities. One example is the frequent changes in taxation policy on IT export proceeds.

According to the MoITT, the taxation issues confronting the IT & ITeS industry are creating unnecessary obstacles and challenges for businesses and freelancers. Banking obstacles and unnecessary restrictions discourage exports from using formal banking channels and encourage export earnings to be retained abroad.

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According to the document, ease of travel is required to ensure the growth of IT and ITeS exports for both inbound and outbound travel of investors, customers, partners, and employees from offices abroad. The shortage of skilled human resources is a persistent issue in the IT and ITeS industries.

With increasing international demand, it is difficult to find human resources with the necessary skill set and experience. The demand for skilled human resources in the IT industry has increased significantly, as has the supply of IT graduates.

The lack of affordable IT-ready infrastructure in major cities, as well as secondary and tertiary cities, is limiting the growth of the IT and ITeS industries, and thus exports. Access to capital is required for IT businesses to expand their operations on both a local and international scale. The majority of IT businesses are small and medium-sized enterprises (SMEs) that lack the capital to expand.

According to the ministry, limited international marketing, branding, promotion, and business development are insufficient to make the country a preferred outsourcing destination worldwide. To meet the target of US $ 15 billion in IT exports in five years, international marketing and export enhancement programmes must be expanded tenfold with adequate funding.