It's boom time for companies battling the Y2K bug
SOFTWARE pundits may be predicting doom but the companies providing solutions have never witnessed such a boom. An estimated 150 Indian companies, reputed for cheap software engineers, are catering to the global demand for Y2K solutions. And the number of software professionals employed is increasing by the day. The Gartner group estimates the cost of fixing the problem at around $600 billion, more than one-and-a-half times India's GDP.
"Part of the boom in this time of doom can be explained by the fact that companies are still selling non-compliant software and products in the market," says a computer industry executive.
But it's also boom time for compliant software companies. IIS Infotech, based on the outskirts of Delhi, has been doing brisk business as has Tata Consultancy Services, apart from a host of other lesser known names. IIS Infotech has set up a separate research and development group for the Y2K solutions. And with over two dozen customers, who are among the best known brands in their respective sectors, and more pouring in, business could not have been better. Just look closely at how well the IT share prices have been doing despite the economic slump, and the reason is not difficult to understand. "We have also started a Y2K training centre over a year ago," says Saurabh Srivastava, chairman, IIS Infotech.
The stocks of UK-based Micro Focus have similarly been having a wonderful run, much to the delight of those who hold the stocks. Says London-based senior executive Chris Finch: "Over the last one year, the stock prices of Micro Focus have doubled." Not surprising, therefore, that even though time is fast running out, nearly 20 per cent of the company's revenues are accounted for by the Y2K business. As part of its effort to tap cheap labour, Micro Focus has a complete unit operating out of India's Silicon Valley. The company is also hawking "Verification 2000", a software to check the compliance of computers and networks.
The IT group at Bangalore-based BPL has been hawking Y2K compliant cellular phone billing systems. BPL itself has spent over Rs 5 crore to address the problem at its end. HLL has spent Rs 40 crore. India has not yet woken up to the problem but the cost of providing services will spiral with every passing day. And the going will be tougher for the late-riser.