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|May 26, 1997||
Y2K hacks run for insurance coverThe National Association of Software and Service Companies is trying to get Indian software companies cover against legal action from US firms if they can't provide a solution for the year 2000 problem.
NASSCOM has already had talks with the General Insurance Corporation and some firms in the US.
The year 2000 problem has come into being because most legacy computer systems have two digits to represent the year, that is 77 instead of 1977. Naturally, these machines will now read the year 2000 as 1900, putting in a spot banks and other institutions which calculate interest rates etc on the basis of dates.
Several Indian companies have set up divisions to create software to resolve the problem in different packages. They also conduct feasibility studies and provide consultancy and code testing to solve the problem.
According to NASSCOM Executive Director Dewang Mehta, many of the companies making such software are being made aware of the possibility of litigation against them if their software is either not on time or does not function properly.
Some experts expect the cost could go up to a total of $100 billion. Small Indian firms may be ill-equipped to deal with legal costs of this order, Mehta said, adding that this is why NASSCOM is approaching GIC and foreign insurance firms.
Foreign firms were being called in because GIC may not be capable of providing insurance cover in dollars.
NASSCOM is trying to provide insurance to customers too, he said, adding that it is trying to organise a bulk discount from US firms.
- Compiled from the Indian media
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