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NASSCOM: German IT Innovation Shows Way Out of the Crisis

BERLIN and MUMBAI, India, February 8 /PRNewswire/ -- Innovation by Germany's Information and Communications Technology (ICT) industry is a key to rapid economic recovery. Europe's largest market and a propeller of cutting-edge technology, Germany's IT industry is responsible for 80 percent of German innovations in all industries. Left relatively unscathed by the downturn, ICT has continued to perform well worldwide. Germany Trade & Invest will be presenting the latest in ICT innovation at this year's NASSCOM India Leadership Forum 2010 from February 9 - 11 in Mumbai, India.

Germany is leveraging its strong position in ICT innovation to boost future growth. The industry posted over EUR 133 billion in revenue in 2008 and holds 19 percent of the European ICT market. To secure this position Germany has boosted funding for research and development projects. The government's High-Tech Strategy supports the ICT industry with over EUR 1.5 billion reserved for ICT R&D projects. Over EUR 15 billion is additionally available for project grants and research funding to further promote innovation.

The ICT industry has an umbrella effect on other sectors, which is evident in the number of patents the industry registers. These innovations contribute to industries such as automotive, medical technologies and logistics industries. With 1,800 patents in 2007, Germany was behind only the USA and Japan.

One market segment that is currently drawing attention is the so-called business process outsourcing and shared services center (BPO-SSC) sector. With a 9 percent annual growth rate, it has expanded in recent years to become one of Germany's fastest growing ICT segments. As a result of Germany's highly educated workforce and moderate wage costs, the sector is projecting a market volume of EUR 16 billion by 2012. BPO-SSC opportunities will be one focus of this year's NASSCOM.

German ICT was recently recognized by the European Institute of Innovation and Technology (EIT). Berlin has been selected as a co-location for the first Knowledge and Innovation Community (KIC) for ICT. The EIT ICT Labs project aims at transforming Europe into a knowledge society with an unprecedented proliferation of internet-based services, establishing partnerships between business and academia. Selected based on existing leadership and excellence in the field, the program aims to create new business opportunities and contribute to society through innovation.

Richard Offermann, Director of Service Industries at Germany Trade & Invest: "The ICT industry in Germany is highly attractive to investors. It is performing well despite the downturn and acts as a reliable motor of innovation. German and Indian IT companies are already strong partners. This year's NASSCOM is an excellent forum for us to showcase the latest opportunities for further cooperation in leveraging projects with an offshore element."

For investors looking to enter Europe's largest market, Germany Trade & Invest will have representatives on hand at this year's NASSCOM. Opportunities in Germany will be discussed at the country panel "Tackling Offshore Challenges in Germany".

Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.

    Eva Henkel
    T. +49(0)30-200099-173
    F. +49(0)30-200099-111
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