...but they ain’t worried! It’s competency & quality that promise the future for Indian IT giants; not ‘luck’!
As far as exports are concerned, Nasscom guarantees a stable future for Indian IT Services, with 92% of overall IT-ITeS exports for India being accounted for by Americas (67%) and Europe (25%). With the IT Services expenditure from US expected to grow to $680 billion by 2009-end (CAGR of 8.3%), and with demand from the Asia-Pacific region, which accounts for 7% of exports, forecasted to grow at a CAGR of 11.6% (as per Nasscom), the future of the Indian IT Services Industry appears anything but gloomy!
Here, Enderle points out the two lethal weapons that India has in this respect: “The Indian IT sector has made heavy inroads into the world of business and the ‘cost-benefit’ and gamut of ‘quality services’ now provided by Indian firms is unmatched...” To this, Anjan Lahiri, CEO, MindTree Ltd. also adds, “India with its large ‘knowledge work force’ is in a good position to continue to play a very important role in the global IT services industry.” Even ATKearney’s 2008 report proves how, amongst 49 Global IT Services locations in the world, India stands right on top when it comes to ‘Outsourcing Destination’. CII estimates that for MNCs, cost savings delivered through sourcing from India lie between an incredible 25-60% of the company’s original costs! Yes, Indian IT companies have a bright future ahead of them despite the current hiccup, as Diwakar Nigam, MD, Newgen Software quips, “There is still huge untapped potential for Indian IT Services companies. Many large companies will become stronger, and many new ones will innovate and create value...” Talking about the road ahead for the sector, Anil Bhakt, MD, Eastern Software, confidently states, “As the markets around the world stabilise, the sector will once again see a surge in demand because of the inherent ‘quality’ of services provided by Indian IT giants...”
The sector is well within reach of the $60 billion exports target set for FY2010, which requires the sector to grow at 23.2%; not a difficult task, having pocketed $41 billion in revenues in FY08, having grown y-o-y by 33% (IDC). Also, annual expenditure on IT Services globally, is on the rise, and is scheduled to touch a brobdignanian $364.5 billion by 2010; and it becomes all the more imperative for Indian IT Services giants to take full advantage of the opportunity at hand. Our IT Service giants have served Fortune 500 names for long, and that’s proof enough to their superior ‘quality’ services. And what’s best, unlike Martha, none of them need to get behind bars to earn a fortune!
Here, Enderle points out the two lethal weapons that India has in this respect: “The Indian IT sector has made heavy inroads into the world of business and the ‘cost-benefit’ and gamut of ‘quality services’ now provided by Indian firms is unmatched...” To this, Anjan Lahiri, CEO, MindTree Ltd. also adds, “India with its large ‘knowledge work force’ is in a good position to continue to play a very important role in the global IT services industry.” Even ATKearney’s 2008 report proves how, amongst 49 Global IT Services locations in the world, India stands right on top when it comes to ‘Outsourcing Destination’. CII estimates that for MNCs, cost savings delivered through sourcing from India lie between an incredible 25-60% of the company’s original costs! Yes, Indian IT companies have a bright future ahead of them despite the current hiccup, as Diwakar Nigam, MD, Newgen Software quips, “There is still huge untapped potential for Indian IT Services companies. Many large companies will become stronger, and many new ones will innovate and create value...” Talking about the road ahead for the sector, Anil Bhakt, MD, Eastern Software, confidently states, “As the markets around the world stabilise, the sector will once again see a surge in demand because of the inherent ‘quality’ of services provided by Indian IT giants...”
The sector is well within reach of the $60 billion exports target set for FY2010, which requires the sector to grow at 23.2%; not a difficult task, having pocketed $41 billion in revenues in FY08, having grown y-o-y by 33% (IDC). Also, annual expenditure on IT Services globally, is on the rise, and is scheduled to touch a brobdignanian $364.5 billion by 2010; and it becomes all the more imperative for Indian IT Services giants to take full advantage of the opportunity at hand. Our IT Service giants have served Fortune 500 names for long, and that’s proof enough to their superior ‘quality’ services. And what’s best, unlike Martha, none of them need to get behind bars to earn a fortune!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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