Hardware Growth is Essential for Controlling Software Costs

Soon after establishing its presence in the Indian sub-continent, Korean
consumer electronics giant LG Electronics has become a force to reckon with in
IT hardware as well. With the government now softening its approach towards IT
hardware, manufacturing powerhouses like LG are all set to increase PC
penetration within the country with the introduction of new models in the
market. In an interview with Zia Askari LG Electronics India sales and marketing
(IT Products) deputy GM R Manikandan lays down the company’s vision and
current agenda. Excerpts:

What is the future of infotech industry in India. How will
the recent sops being offered by the government to the hardware industry make a
difference?

India’s IT hardware industry will witness a steady growth year-on-year.
Year 2004 is expected to grow by 25% over 2003 and this is a good sign for the
overall IT industry as I firmly believe that hardware growth is essential for
controlling software costs. These sops offered by the government would
definitely help increase the overall growth of the industry and PC penetration
is sure to reach greater heights in the coming months. We as a vendor are quite
upbeat about this move. However, I feel that the government should also be a bit
clearer towards the duty structure regarding the component-level segment. There
are some resellers and assemblers who are not so clear about this segment and
getting across the right message is equally important.

What can be done by the industry to accelerate the growth
of computerization in the domestic market?

Information is essential, the right information. The consumer should be well
informed of technology developments, new products, development trends etc. With
the increase in consumer awareness, PCs can have expanded applications, which
will result in newer market creation. The advantages of increased productivity,
accuracy, reliability and convenience resulting out of computerization have to
be well informed to various business verticals.

Is it important for India to focus on computer hardware
manufacturing to sustain its success in the software exports in the future?

The hardware manufacturing strength will certainly help in controlling costs
for software units. This in turn will make Indian software houses become more
competitive in the global arena. With a strong hardware presence, it will
further make Indian software houses more competitive.

What new products does LG plans to launch in the next 12
months?

LG will be launching a host of high-end CRT monitors and LCD monitors in 2004.
We plan to launch the newer models of CRT and LCD monitors in the mid of Q1
2004. The company also has plans to launch newer model PCs in Q1 2004. LG is
coming out with newer models primarily because of the positive market response
the earlier models in the MY PC series have elicited. The series would cater to
SOHO, home, corporate, educational and government institutions. The price would
be much more affordable than the existing MNC PC brands.

What will be the growth pattern of technology in the
future? What role are technologies like Wi-Fi going to play in this regard?

Convergence is the key word today. There will be a whole lot of convergence
taking place between data and communication. Internet ready terminals, Tablet
Monitors are but some of the emerging technologies in display. While Wi-Fi would
gain ground this year, I feel it would be restricted more to big corporate,
airports, hotels and so on. It will still take sometime for a country like India
to realize the full potential of a technology like Wi-Fi.

CyberMedia News Service