A TASK FORCE on human resources development in information technology (IT) industry has called for providing special fiscal incentives to attract expatriate talent for high-end work and creating an `ITES/IT opportunity awareness fund' towards meeting the growing demand of technical workforce in the country.

The task force, set up by the Ministry of Communications and IT, also suggested that the tax incentives similar to those available to charitable institutions be extended to private companies who provide training in IT and ITES.

"The new Science and Technology Policy (2003) has already identified attracting expatriate talent as one of the possible means of developing high-end management and R&D talent in the ICT sector.

While the private sector has been successful to some extent in these efforts, specific tax incentives related to tax exemption for some period (two-five years), resettlement concessions, permanent residence status to close family members would help make this shift more attractive to potential target professionals," the report said. A central body representing the industry, such as Nasscom, should be asked to create and manage a dedicated fund directed towards creation of greater awareness about ITES and IT employment, especially in smaller cities. The fund could be set up through contributions from the industry in the form of a cess towards development of relative skills.

The Government should also change regulations that restrict ITES companies from extending their networks and equipment to allow people working from their residence. Investments made by employees working from home in IT equipment and communication services should be exempt under income-tax for individuals.

The identified skills for the sector should be incorporated in the current formal education system. The primary and secondary education system should lead to the development of English language as well as computer literacy skills

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