The Indian software industry has recorded a scorching growth of 53.84 per cent in the last five years. Will it be able to sustain the same pace in the coming years?
The industry will continue to grow at a good pace, at least for the next three to four years. After that, it will hit a bottleneck of people, productivity, infrastructure and per capita revenue.

What can the government do to ease these bottlenecks?
First of all, thegovernment has to create infrastructure.

Data-communication and internet infrastructure should improve. Tariffs for datacom, internet and telecom also need to come down. Output from the IITs has to be increased -- in fact, quadrupled. Institutions and computer centres have to be given incentives for quality manpower. If the government is serious about achieving exports of US $ 50 billion by 2008, it should address the question of employee stock options immediately. Issues of capital account and current account convertibility should also be addressed.

What are your views on fake companies entering the market under the guise of software firms? To what extent has the dramatic rise in software scrips been fuelled by speculation?
You should ask analysts. I don't understand markets. I don't invest in the stock market at all.

Has insider trading in the Infosys scrip increased?
No. There is no question of insider trading having increased. We already have guidelines on this and are currentlyin the process of improving them.

How important is an overseas listing in the scheme of growth?
Very important. Listing on a global exchange is important to attract high-quality manpower from the local market. Microsoft has 34 per cent of its equity subscribed to stock options, Intel has 28 per cent. As corporations grow and move towards the offshore model, it becomes more expensive to replicate their systems and infrastructure in India. We spend Rs 6 lakh per annum on every new employee at present. As capital requirements become larger, it may not be possible for India alone to meet the requirements.

Now that the markets have improved, when is Infosys planning its ADR issue?
As soon as possible. We are monitoring the market closely but no date has been set as yet. It could be the next month, next quarter or two quarters down the line. Nothing has been decided so far.

Why have you chosen to list on the Nasdaq and not on the New York Stock Exchange?
Both are absolutely greatexchanges. But being a technology company, we thought Nasdaq was more appropriate. A majority of hi-tech, hi-growth companies are listed on the Nasdaq. The NYSE is also a great vehicle.

Infosys has been outperforming projections consistently. Are your projections very conservative?
We are very circumspect and conservative in our estimates. We look at all possibilities where things might go wrong. This quarter, Infosys has made a provision of Rs 3.33 crore for Y2K problems which might arise from vendors' services not being Y2K compliant.

What is your prescription for success?
Reasonable management, a bit of smartness, good budgeting and customer satisfaction. You should be unusual in what you bring to the market. It could be how you treat your employees, customers...We were the first to set up a software development facility, have a campus atmosphere, flexible-timings, first to publish quarterly audits, first to adopt US GAAP accounting practices...

What does Infosys plan to do inthe near future?
Create a fourth wave in the Silicon Valley. We have to go beyond the third wave. Our target is to be noticed in the crowded market.

Is there an over-supply of Indian professionals abroad?
If you are seen as a premium player, a desired player, there will always be demand. There is a shortage of around 3,000 professionals in the US. But in certain special segments there could be oversupply.

What role do products play in establishing the brand of a software company?
A brand is nothing but a trust mark. It is not necessary for big brands to be products -- Sheraton is a service brand.

While the software export industry has grown at 57.44 per cent, the domestic industry has grown only at 48.26 per cent. Why is the domestic market lagging?
The growth of the domestic IT market will depend on the pace at which the economy grows. The GDP growth rate today is less than 5 per cent. Investments in IT by manufacturing and service companies will not be high.