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NASSCOM

The (NASSCOM) is a non-profit established in 1988 as the body representing 's and (IT-BPM) industry. With over 3,000 members encompassing service providers, product companies, startups, multinationals, and global capability centers, NASSCOM drives policy advocacy, workforce reskilling, and collaborative innovation to position as a global technology leader. The organization has significantly contributed to the sector's expansion, growing industry revenue from approximately $50 million in its early years to $250 billion by fiscal year 2023 estimates, while increasing membership from 397 companies in 1995-96 to more than 3,000 today, thereby establishing as a key hub for IT services and .

History

Founding and Early Years (1988–1990s)

NASSCOM, the National Association of Software and Service Companies, was established in 1988 as a nonprofit trade body to advocate for India's emerging software and IT services sector amid a regulatory environment that restricted private enterprise and exports. Founded by pioneering IT entrepreneurs in , the organization commenced operations in December 1988 with an initial membership of 38 companies, representing a fragmented focused primarily on development for domestic and limited international clients. Harish , founder of , emerged as a driving force, serving as the first elected chairman and galvanizing efforts to unify disparate firms against bureaucratic hurdles. In its formative phase through the early , NASSCOM prioritized policy advocacy to foster growth, including for fiscal incentives critical to export-oriented businesses. A key achievement came in 1991, when the association successfully secured a government exemption on for profits derived from software exports, addressing a major barrier in India's pre-liberalization where high taxes and restrictions stifled competitiveness. This effort built on informal industry networks dating back to the mid-1980s and positioned NASSCOM as the primary interlocutor with policymakers, helping to elevate the sector's visibility despite initial low-profile operations and challenges like limited and toward private initiatives. By the mid-1990s, NASSCOM had expanded its influence, growing membership to 397 companies by 1995–96 and advocating for reforms, including the entry of private service providers (ISPs) to bolster connectivity essential for software delivery. These activities laid foundational groundwork for scaling, with software exports rising from negligible levels in 1988 to contributing measurably to foreign exchange by decade's end, though the association's role was more facilitative than transformative until broader economic reforms took hold. Early initiatives also emphasized skill development and , countering perceptions of as a low-cost labor hub by promoting quality standards.

Expansion and Policy Influence (2000s)

During the 2000s, NASSCOM facilitated the expansion of India's IT and software services sector, which saw software exports surge from $6.2 billion in 2000–01 to $46.7 billion by 2007–08, driven by global demand and domestic firm scaling. The association's membership expanded to 850 firms by the end of 2002, encompassing a growing of exporters and service providers that benefited from NASSCOM's efforts in standardizing certifications and . This period marked India's emergence as a global IT hub, with the sector achieving compound annual growth rates exceeding 30% in key years, outpacing the national economy. NASSCOM's policy advocacy shaped government initiatives to support this growth, notably influencing the expansion of Software Technology Parks (STPs) and the introduction of Special Economic Zones (SEZs) tailored for IT operations. The SEZ policy, notified in 2000 and enacted via the SEZ Act of 2005, provided tax holidays, duty exemptions, and streamlined approvals, with NASSCOM recommending reforms such as enhanced tax benefits for SEZ units between 2006 and 2012 to sustain export incentives amid maturing competition. By the late 2000s, over 60% of operational SEZs focused on IT/IT-enabled services, underscoring the association's role in aligning policies with needs. The association also partnered with the to formulate broader IT frameworks, including inputs on the , which legalized digital signatures and electronic contracts, enabling secure cross-border data flows essential for software exports. NASSCOM's lobbying extended to crisis response and facilitation, such as addressing post-dot-com bubble slowdowns through targeted export promotion and skill-building programs, while critiquing regulatory hurdles to maintain sector competitiveness. These efforts helped mitigate policy risks, with the sector rebounding to contribute significantly to foreign exchange earnings by decade's end.

Evolution in the Digital Age (2010s–Present)

In the 2010s, NASSCOM shifted focus toward fostering innovation in emerging digital technologies such as , , and , aligning with India's initiative launched in 2015 to drive nationwide digital infrastructure and services. The association launched its 10,000 Startups program in 2015, committing to incubate, fund, and support 10,000 technology-led ventures by 2023 through mentorship, access to funding networks, and global exposure opportunities like startup exchange programs. This initiative connected startups to angel investors, , and ecosystem partners, bolstering India's tech amid a surge in domestic venture funding that exceeded $10 billion annually by the late 2010s. To address skill shortages in the , NASSCOM introduced FutureSkills in as an industry-driven platform in partnership with the Ministry of Electronics and Information Technology (MeitY), targeting reskilling in 155+ competencies across 70+ roles in 10 emerging technologies including , , and cybersecurity, alongside non-technical skills like . By providing aligned certifications and pathways under Occupational Standards, the aimed to equip over 1 million professionals annually, responding to projections of a 20-25% talent demand-supply gap in digital roles. These efforts supported the tech sector's revenue growth to $194 billion in FY2022, with exports comprising 80% and engineering R&D services expanding at 11.4% year-over-year. Entering the , NASSCOM emphasized resilience and advanced digital adoption post-COVID-19, advocating hybrid work models, employee upskilling, and integration as detailed in its 2023 Strategic Review, which reported industry revenues reaching $245 billion amid a 3.8% growth despite global headwinds. The association tracked the rise of Global Capability Centers (GCCs), whose direct contributions scaled from approximately $10 billion in 2010 to $68 billion by 2025, employing over 1.6 million and driving innovation in sectors like and healthcare. NASSCOM's Adoption Index with highlighted enterprise maturity in converting AI pilots to value, with the digital economy's GDP share at 11.74% in 2022-23, projected to hit 20% by 2029-30 through sustained policy advocacy on and talent pipelines. These developments positioned the sector for $350 billion in revenues by 2026, underscoring NASSCOM's role in elevating India's global digital competitiveness.

Organizational Structure

Membership and Representation

NASSCOM maintains a membership base exceeding 3,000 companies actively involved in India's and (IT-BPM) sectors. These members encompass a broad spectrum, ranging from startups and product companies to multinational service providers, Global Capability Centers (GCCs), and engineering firms, reflecting the association's role in uniting diverse entities within the technology ecosystem. Eligibility for membership is restricted to organizations registered in India, with categories delineated by revenue thresholds and affiliation. Regular members include IT-BPM entities generating annual revenues above ₹2 , while associate members cover startups with revenues at or below this amount. Institutional members comprise supporting organizations such as financial institutions and firms linked to the IT-BPM industry. Membership fees are tiered by revenue scale: large enterprises exceeding ₹500 , growth-stage companies between ₹50 and ₹500 , and emerging firms from ₹2 to ₹50 . In representing its members, NASSCOM functions as the primary advocate for India's $283 billion technology industry, articulating collective priorities to government bodies, , and global stakeholders. This includes for enabling policies, promoting innovation-friendly regulations, and enhancing the sector's international competitiveness, thereby positioning member firms to capitalize on opportunities in IT services, products, and talent development. Through these efforts, the association amplifies the industry's influence on national economic strategies and regulatory frameworks.

Leadership and Governance

NASSCOM functions as a not-for-profit association governed by an Executive Council comprising senior executives from its member organizations, which provides strategic direction, policy formulation, and advocacy for the IT-BPM sector. The Council shapes the association's vision and agenda, focusing on growth, innovation, and global competitiveness, with members typically drawn from leading firms to ensure representation of diverse interests. This structure emphasizes collective leadership over hierarchical control, aligning decisions with the needs of over 3,000 member companies spanning software services, products, and startups. The current Chairperson of the Executive Council is Sindhu Gangadharan, Managing Director of Labs India Pvt Ltd, who oversees the Council's strategic priorities. Srikanth Velamakanni serves as Vice Chairperson, in his capacity as Co-Founder and Group CEO of Fractal Analytics Pvt Ltd. Krishnan Ramanujam, President of Service Lines at (), holds the position of Immediate Past Chair. Other prominent Council members include BVR Mohan Reddy, Founder and Chairman of Cyient Ltd, who convenes the Chairperson Council, as well as executives such as Ajay Vij from and Amit Chadha from . Operational is provided by Rajesh , who assumed the role on October 1, 2024, and is responsible for executing the Council's directives, fostering industry collaborations, and driving initiatives like skill development and policy advocacy. brings over three decades of experience in enterprise technologies, previously serving in senior roles at companies including and . The team's composition reflects NASSCOM's emphasis on drawing expertise from top-tier member firms to address evolving challenges such as governance and .

Mission and Objectives

Core Values and Strategic Goals

NASSCOM's core values are defined by the ELICIT framework, comprising Excellence, Learning, Impact, Collaboration, Inclusion, and Trust, which have underpinned the organization since its establishment in 1988. These values manifest in practices such as nurturing excellence through high standards in industry representation, fostering continuous learning via skill-building programs, maximizing impact on economic growth, driving collaboration among over 3,000 members, championing inclusion across diverse talent pools, and building trust through reliable advocacy and ethical operations. The organization's vision is to position India's tech ecosystem as the world's trusted partner, while its mission centers on advocating for the $283 billion sector to solidify India's role as a global hub for and IT services with a human-centric emphasis. Strategic goals prioritize reskilling and upskilling the for future readiness, exemplified by the ThinkDigitalThinkIndia initiative aimed at aligning with ; accelerating through deep member engagement and ; and advancing advocacy to cultivate an enabling regulatory environment. These efforts seek to sustain a growth-led and business services sector, with foundational focuses on bolstering , expanding , enhancing support, developing , and promoting to drive long-term competitiveness.

Advocacy for Industry Growth

NASSCOM has played a pivotal role in shaping government policies to facilitate the expansion of India's and (IT-BPM) sector since its in 1988. By engaging with policymakers, the organization has advocated for infrastructure development and fiscal incentives that lower and enhance competitiveness. A key early achievement was its influence on the establishment of (STPI) in 1990, which provided dedicated infrastructure, 100% foreign equity allowance, and tax exemptions under Section 10A of the Act, catalyzing software exports from negligible levels to a multi-billion-dollar industry. In domestic policy arenas, NASSCOM has lobbied for reforms in Special Economic Zones (SEZs) to sustain export-led growth, including amendments in 2013 that streamlined operations and boosted sector revenues, and proposals in 2019 for extending tax benefits beyond 2020 at concessional rates of 9% to retain incentives amid sunsetting provisions. The association has submitted detailed recommendations to bodies like the (RBI) on simplifying export processes under the Foreign Exchange Management Act (FEMA) and to the (DoT) on cyber security rules in 2025, aiming to reduce burdens and align regulations with global standards for and data flows. Additionally, NASSCOM has collaborated with the Ministry of Electronics and Information Technology (MeitY) on initiatives like Global Cross-Border Privacy Rules (CBPR) workshops in September 2024 and produced white papers evaluating frameworks such as CBPR and APEC Cross-Border Privacy Enforcement Arrangement () to support innovation hubs and over 1,700 Global Capability Centers (GCCs) driving R&D investment. On the international front, NASSCOM has prioritized and policies to bolster exports, which constitute over 60% of the sector's revenue from the . The organization spent $510,000 on U.S. in 2019, ranking as the third-largest tech lobbyist there, with efforts focused on maintaining availability for skilled migration amid restrictions. In July 2025, it launched the U.S. CEO Forum in to foster strategic dialogues between Indian tech leaders and U.S. stakeholders, enhancing bilateral ties for sustained export growth projected at 5.1% for 2025, pushing industry revenues beyond $300 billion. These advocacy measures, grounded in annual strategic reviews and policy handbooks, have contributed to the sector's expansion from $118 billion in fiscal 2015 to an estimated $283 billion by 2025, though outcomes depend on government implementation and global economic conditions.

Key Activities and Initiatives

Events and Conferences

NASSCOM organizes a range of events and conferences aimed at promoting thought leadership, networking among industry stakeholders, and advancing within India's IT-BPM sector. These gatherings typically feature discussions on such as , sustainability, and , attracting global leaders, policymakers, and executives from member companies. The nasscom Technology and Leadership Forum (NTLF) stands as one of NASSCOM's flagship annual events, now in its 34th edition as of , serving as India's premier platform at the intersection of , , and for over three decades. Held in , the 2024 edition occurred on February 20-21 at the JIO World Convention Center in , marking its 32nd year and focusing on strategic leadership in the . Past iterations have emphasized rebranding the industry and debating global trends, with participation from vertical leaders worldwide. Another key conference is the NASSCOM Technology Conference (NTC), which in 2025 spans November 5 to 25 across 10 cities in , themed "The Era of Intelligent Progress" to explore , , and . This multi-city format facilitates broader and catalyzes discussions on shaping 's technological future through collaborations with global innovators. The Nasscom Future , formerly known as the Nasscom Product Conclave, has evolved into Asia's leading deep tech thought leadership forum over its 22-year history, convening developers, startups, and enterprises to address and challenges. Complementing these are specialized events like the Nasscom Summit 2025 for global capability centers, the Agentic Confluence on October 7, 2025, in focusing on advancements, and the People Summit 2025 targeting strategies. Internationally, NASSCOM launched the CEO Forum on July 9, 2025, in to enhance technology and economic ties between and the . These events collectively drive industry growth by facilitating knowledge exchange and partnerships, with agendas curated to align with NASSCOM's mission of empowering .

Collaborations and Partnerships

NASSCOM maintains strategic partnerships with Indian state governments to foster ecosystems. On February 27, 2025, it signed a with the Innovation and Technology Society () to position as a leading hub, emphasizing creation, startup acceleration, and through joint initiatives in . These collaborations extend to engagements, including advocacy within frameworks like the Cross-Border Privacy Rules (CBPR) Forum, which involves coordination with trade partners such as , , and to harmonize data protection standards and facilitate digital trade. Internationally, NASSCOM pursues alliances to enhance global market access for IT firms. In September 2025, it partnered with the Tech Council of to promote tech , trade, and industry-specific collaborations between the two nations. Earlier, in June 2022, NASSCOM entered a with the German Bundesverband mittelständische Wirtschaft (BVMW) to deepen bilateral ties through joint seminars, conferences, and trade exhibitions aimed at expanding market opportunities for . In the , NASSCOM established the Launchpad program via a with VentureLink@NJIT and Choose , focusing on technology-based and business matchmaking between firms and entities. The NASSCOM CEO further supports high-level dialogues to strengthen India- technology partnerships. NASSCOM also collaborates with global corporations and startups to drive innovation in areas like . In August 2023, it launched the AI for Business Grand Challenge in partnership with to encourage B2B solutions and foster startup growth in AI applications. Through programs like InnoTrek 2025, NASSCOM facilitated partnerships for 27 deeptech startups in AI and climate technology, enabling their entry into the market via learning and networking opportunities. These efforts align with broader models, where NASSCOM promotes between startups, , and corporates, reportedly accelerating scaling by up to 50% for involved startups. Additionally, events such as the Global Confluence 2025 convened policymakers and industry leaders to forge cross-border alliances in semiconductors and critical minerals, exemplified by deepening India-Japan ties.

Skill Development Programs

NASSCOM has spearheaded multiple initiatives to address skill gaps in India's IT and IT-enabled services (ITeS) sector, emphasizing training in emerging technologies such as , , and to build a workforce aligned with industry demands. Through partnerships with the Ministry of Electronics and (MeitY) and the (NSDC), these programs target upskilling for professionals, students, and marginalized groups, aiming to foster employability and support India's ambition to become a global digital talent hub. A cornerstone program is the Sector Skills Council Nasscom (SSC Nasscom), established in 2012 as a not-for-profit initiative to set national standards for IT-ITeS skills. SSC Nasscom develops occupational standards, qualification packs, and curricula for over 70 job roles, facilitating training, assessment, and to ensure relevance; it has trained millions in areas like and data analytics, with placement support integrated into its framework. FutureSkills Prime, launched on November 19, 2020, in collaboration with MeitY, serves as a offering self-paced courses and NASSCOM certifications across 12 digital technologies (including , cybersecurity, and ) and 10 professional skills like and agile methodologies. The covers 155+ skills for emerging , incorporating competency diagnostics, job , and partnerships with providers for verified credentials, targeting both individual learners and enterprises to bridge the talent shortage estimated at over 1 million professionals annually in the sector. NASSCOM Foundation complements these efforts with employability-focused programs for underserved populations, including practical training in technologies for students and economically weaker sections. Initiatives emphasize holistic , such as readiness and , with recent collaborations—like one with ITC Infotech reported in 2024—empowering over 1,300 marginalized youth through tech skilling and job linkages, prioritizing inclusivity for women and rural learners to promote sustainable workforce growth.

Economic Impact and Achievements

Contributions to India's IT Sector

NASSCOM, founded in , has advanced India's IT sector primarily through sustained policy advocacy, securing regulatory frameworks that enabled rapid scaling of software exports and domestic operations. By engaging with government bodies, it influenced key incentives such as the establishment of (STPI) schemes in the early 1990s, which offered infrastructure support, 100% foreign equity allowance, and tax exemptions, catalyzing the shift from hardware imports to export-oriented services. These measures contributed to software exports rising from negligible levels in the late to accounting for 20% of India's total export revenues by 2003-04. In development, NASSCOM established the IT-ITeS Sector (SSC) in 2012 under the , focusing on standardizing training, certifications, and curricula to bridge employability gaps in a sector employing over 5 million professionals by the mid-2010s. This initiative aligned industry needs with education, emphasizing digital skills amid projections of needing 1 million additional tech workers annually; subsequent programs, including collaborations on skilling reported in 2024, have supported workforce reskilling for emerging technologies. NASSCOM's research publications, such as annual Strategic Reviews, have provided empirical benchmarks for , tracking progression from $118 billion in FY15 (including $100 billion in exports) to an estimated $283 billion by FY25, while advocating for investments in hubs and R&D tax credits. These efforts, combined with global outreach forums, positioned as a preferred IT destination, with the sector's FY25 of 5.1% to $282.6 billion reflecting sustained momentum under NASSCOM's representational umbrella.

Global Market Influence and Exports

NASSCOM's Global Trade Division drives international expansion for member firms by fostering partnerships, navigating regulatory landscapes, and advocating for market access in key regions such as , , and . This includes organizing trade missions, participating in global forums, and influencing policies to reduce barriers for Indian IT services, thereby enhancing the competitiveness of exports that constitute over 50% of the industry's revenue. Indian IT and exports, bolstered by NASSCOM's standardization efforts and skill-building initiatives, reached $194 billion in FY2023, reflecting 9.4% year-over-year growth in reported currency and accounting for approximately 55% of the sector's total revenue. In FY2024, exports grew 3.3% to $199 billion in constant currency terms, maintaining India's capture of around 18% of the global IT spend amid macroeconomic headwinds in major markets. Projections from NASSCOM indicate exports will surpass $200 billion in FY2025, with a 4.6% growth trajectory driven by demand in engineering research and development (ER&D) and , where India holds leading positions. NASSCOM's role extends to supporting agreements, such as the India-UK deal, which provides duty-free access for services and strengthens export pipelines to high-value markets. These efforts have elevated India's share to over 50% in key segments like application development and maintenance.

Criticisms and Controversies

Employment Practices and Labor Policies

NASSCOM has lobbied for exemptions from key labor regulations, including the Industrial Employment (Standing Orders) Act, 1946, which mandates employers to define and certify conditions of service such as work hours, holidays, and termination procedures. In , the IT-BPM sector received such an exemption extension in 2019, following NASSCOM's advocacy, building on prior waivers dating to 1999 that avoided rigid manufacturing-oriented rules ill-suited to dynamic tech operations. These measures facilitate rapid hiring, variable pay structures, and workforce adjustments, but critics argue they erode formal protections, enabling informal practices like contract labor dominance and arbitrary dismissals without standardized grievance redress. The absence of certified standing orders has been linked to the IT industry's characteristic high rates—often exceeding 20% annually—and limited , as exemptions reduce incentives for by prioritizing employer flexibility over worker security. NASSCOM maintains these policies support competitiveness in a global market, welcoming sector-specific flexibilities under model Shops and Establishments Acts for skilled IT roles. However, in practice, this has drawn scrutiny for contributing to precarious conditions, including benching (idling employees without pay during low project demand) and over-reliance on third-party contractors who receive fewer benefits than permanent staff. Amid rising layoffs, such as Infosys's termination of over 300 trainees in February 2025, NASSCOM defended the sector's performance-based hiring and firing as meritocratic and law-compliant, rejecting claims of systemic exploitation following labor department probes that found no violations. The association has also anticipated further "workforce rationalization" due to AI-driven efficiencies, projecting job displacements without advocating enhanced retraining mandates or norms beyond statutory minima. Critics, including labor analysts, view this as emblematic of NASSCOM's growth-first orientation, which systematically favors —evident in IT's broad exemptions from inspections and facilitation—over bolstering protections against technological . On gig and platform work, NASSCOM has critiqued state-level welfare bills, such as Karnataka's 2024 proposal, for flawed revenue assumptions and duplication of central laws, advocating targeted fixes over comprehensive mandates that could burden platforms. While promoting hybrid models for retention and inclusion, the association's resistance to rigid hour caps—like opposing Karnataka's 2024 push for 14-hour IT shifts—highlights tensions between flexibility and overwork, with internal discussions acknowledging India's IT workforce often exceeds 49 hours weekly, per ILO data. Such stances underscore NASSCOM's role in shaping a deregulated that boosts exports but, per empirical patterns, sustains vulnerability to and insecure tenure absent stronger statutory safeguards.

Positions on Visas and Local Hiring Mandates

NASSCOM has consistently advocated for accessible work visa programs, particularly the U.S. , emphasizing their role in addressing skill shortages in the American IT sector. The organization argues that s fill critical gaps in highly skilled domestic talent, enabling and without displacing local workers. In January 2025, NASSCOM refuted claims that s represent an issue or provide "cheap labor," asserting instead that they complement local hiring by targeting specialized roles unavailable locally. In response to the U.S. administration's September 20, 2025, proclamation imposing a $100,000 annual fee on new H-1B applications starting in 2026, NASSCOM expressed concerns over potential disruptions to onshore IT projects and impacts on professionals. The body highlighted that abrupt policy changes create uncertainty for business continuity, particularly for the $283 billion IT industry reliant on U.S. operations. However, following clarifications that the fee applies as a one-time cost to new applicants without affecting existing visa holders, NASSCOM described the overall impact as "very marginal." Regarding local hiring mandates, NASSCOM supports increased recruitment of U.S. workers as a strategic adaptation to visa constraints, noting that Indian IT firms have invested over $1 billion in local upskilling and hiring programs. The organization reports a steady reduction in H-1B dependency, with member companies like TCS and Infosys approving fewer visas over time—7,504 combined in FY 2015—while emphasizing merit-based global mobility over rigid quotas. NASSCOM opposes discriminatory immigration policies that target Indian firms, urging predictable frameworks that balance local employment with access to international talent. This stance aligns with broader advocacy for policies recognizing the IT sector's global talent needs, rather than mandates that could hinder competitiveness.

Recent Developments

Growth Projections and AI Focus (2024–2025)

In fiscal year 2025 (FY25), NASSCOM projected the Indian technology sector's total revenue to reach approximately $283 billion, reflecting a 5.1% year-over-year growth and an incremental addition of $14 billion. Exports were anticipated to contribute $224 billion, growing 4.6% year-over-year and surpassing the $200 billion milestone, while the domestic market was expected to expand to $58.2 billion at a 7.0% rate. Key growth drivers included demand from the United States market, banking, financial services, and insurance (BFSI) sector, as well as Asia-Pacific regions, alongside sectors like telecommunications, retail, and healthcare. Looking toward FY26, NASSCOM's Annual Tech Services CXO Survey indicated optimism, with 77% of technology providers expecting increased spending and stronger growth momentum, positioning the sector to exceed $300 billion in revenue. Net hiring was projected to add 126,000 employees in FY25, expanding the workforce to 5.8 million with a modest 2.2% growth rate, though 45% of providers anticipated further hiring increases in FY26 amid AI-led opportunities. These projections underscored resilience despite global headwinds, with emphasis on AI-driven delivery models, cloud-native technologies, and cybersecurity as enablers. NASSCOM highlighted (AI) as a pivotal focus for sustaining growth, advocating a shift to AI-first enterprise strategies in 2025. In its Digital Enterprise 2025 , the organization noted the highest anticipated jump in AI budget allocations from calendar year 2024 to 2025, with 27% of enterprises deploying AI agents at production scale and 31% at proof-of-concept stages; additionally, 55% of digital services deals in 2024 involved AI pilots or implementations. A companion study on AI agents revealed 88% of enterprises prepared to allocate budgets for testing and building such technologies in 2025, with nearly 90% maintaining dedicated AI funds and 70% employing specialized teams. This emphasis aligned with broader efforts to enhance AI readiness through , cloud integration, and skills development, positioning AI as a core driver for and value creation in the sector.

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