Pawan Prasad is unabashed when he says Indian software engineers and web designers are the best information technology staff you could hire.

He points out that 38% of IT staff in the US are of Indian origin.

Certainly the shortage of software skills has thrown open exciting opportunities for Indian software companies such as Polaris, which Mr Prasad manages, especially in Britain.

Gordon Brown gave a helpful push when he announced in the last Budget plans to relax working restrictions on programmers, designers and other key computer staff.

They will fill some of the 100,000 vacancies in the IT sector, according to the National Computing Centre, and give a lift to Britain as it plays catch-up with America.

Polaris provides software applications to clients including Citibank, Reuters, the Nigerian Bank and NEC.

Finding qualified staff for his offices in London and Reading is one of Mr Prasad's main occupations. "It seems to be a major problem that there are not enough IT staff,"

Like California's Silicon Valley, England's technology hub has a "floating" work force from which contractors could be sourced, he says.

However, Mr Prasad does not appear to be too worried, if only because 80% of the 1,600 staff the company employs are located in India.

Polaris stresses speed, low cost and high quality in its products. However, low labour costs are where Polaris gains its edge. The company entered Britain in June 1998 and now employs 14 staff here. Much of its work is transmitted to India where its programmers design tailor-made packages.

If the program needs to be installed, consultants are flown from India to do the job.

Mr Prasad says it is cheaper than having a large workforce based in Britain, especially when staff can be seconded to clients for six months to a year.

Polaris is expanding under a plan based on organic growth that has so far seen turnover rise to £1m in Britain "This year we will be banking a profit," Mr Prasad boasts.

The firm is backed by an impressive history; it was started in 1983 by three entrepreneurs with total capital of £150. They now run a company that turns a profit of £27m.

The company is listed on the Indian stock exchange, but the determination to grab investors and customers from east and west should lead to a Nasdaq listing once volatility in net stocks has subsided.