September 16, 2019
The deals will ease partnerships and promote technology-based FDI between the two regions
‘NASSCOM Launchpad’ will support R&D in common interest areas between the organisations
As per NASSCOM, BPM growth is driven by advanced technology and intelligent automation
There are over 200 Indian IT-BPM firms providing services to a third of the Fortune 500 firms
The National Association of Software and Services Companies (NASSCOM) signed a preliminary agreement with VentureLink@NJIT and Choose New Jersey, aimed at easing partnerships between India and the US State in September, 2019. These MoUs will also encourage technology-based Foreign Direct Investment (FDI) between the two regions.
The MoUs focus on the need to support collaborative research and development in common interest areas between the organisations from both the regions, as reported by the Hindu Business Line. Named the ‘NASSCOM Launchpad’, the partnership will allow NASSCOM member companies access to a 90-day complimentary soft-landing space in New Jersey, which will serve as their base for their operations.
The ‘NASSCOM Launchpad’ ecosystem, with access to the VentureLink incubator at NJIT, enables an enhanced flow of insights, along with developments in technology, innovation, investments, regulations and information from the specific regions. In addition, the partnership will facilitate improved business partner match-making, and will provide assistance in identifying prospective clients and potential opportunities for collaboration.
According to NASSCOM, the growth of the BPM segment in particular, accounting for 37 per cent of the global share, is being driven by advanced technology solutions and intelligent automation. In India, leveraging the potential of its IT-BPM sector has been integral in attracting FDI from other countries. This is illustrated by the Government having revenue projections of US$350 billion by 2025, showcasing the expected growth of the IT-BPM sector in the coming years.
The growth of India’s IT-BPM sector was initially built by using India’s high-margin resources, handling basic tasks such as technology support and infrastructure maintenance. Today, clients need help with tougher technological and strategic challenges, allowing Indian IT-BPM firms to help global clients better serve their customers using digital technology. As per Government data, there are more than 200 Indian IT-BPM firms, across 80 countries, providing services to a-third of the Fortune 500 companies at the start of 2019.