Posted in Strategy

Indian IT Service & Innovation

Over past two decades several of Indian IT companies had a good rise in their fortunes.  They inched closer to Big 5 consulting companies.  All these happened because of several factors

  • Low cost alternative
  • Global presence in several countries
  • Offering 24×7 services
  • Better and bigger talent pool

While all these helped Indian IT services to grow faster than brick and mortar business anywhere.  Along with this growth came some problems such as

  • Higher salary
  • Lower productivity due to attrition
  • No Innovation
  • No / minimum investment on newer technologies
  • Management focused on cost savings

All the above has caused profits of some of the Companies such as Sonata, Mindtree to drop.  This trend might continue for the other tier 2/3 players if they focus on openration costs as way to survive.

IT service providers need to revisit their strategy, focus on innovation and new technologies as

  • Cloud becoming dominant in SaaS, PaaS and IaaS most the IT services players will feel the pinch.  The SLA’s will be managed by cloud vendors and this might cause loss of revenue in managed services or reworking on cost for IT service providers.
  • Innovation such as iCloud, Google sync will draw customers to look at a new paradigm where Network, System and database administration are more so managed by Cloud players than IT service providers
  • With less investment in newer technologies and more focus on cost savings the management will have staff with no knowledge of latest trends and happenings in the Industry.  This might lead to retrenchment of work force.

Gone or the days where IT services will develop large applications.  Force.com, Amazon and Google Apps have applications which are ready and can be customized to needs.  There are thousands of these applications which can be used as is.  IT service providers bubble is sure to burst if they do not think of innovation, Cloud as path for transformation to their clients.

Author:

Srini is a IT leader with around 20 years of experience. As VP at TechM Srini is responsible for Digital Transformation, Technology solutions and Applications / Product delivery across Europe for fortune 500 companies with a strong team of around 2000. Srini started his career in Oracle. He served in various roles such as Enterprise Architect, Technical Manager for Oracle public sector consulting and as Technical Director of Oracle OU Global business solutions. As a Technical Director at IRI Srini was responsible for Market Knowledge Data Warehouse Product and he led a global team responsible for Architecture and Delivery of Retail analytics. As a Chief Technology Advisor at City of Chicago, he directed Enterprise Architecture, Application Development / Support and IT Strategy. Currently as Unit head at TechM he is working on Digital Transformation, Product / Application Development and manages a Business Unit. Srini's management expertise spans Digital consulting, leading global teams, IT Strategy, Portfolio Management, Managed Services and IT Process Improvements. He holds a bachelors degree in Engineering from Bangalore University followed by a Masters from University of Texas. More details about Srini can be viewed at http://www.linkedin.com/in/srinikumar. Srini can be reached on his Cell at 91-9986103633 or by email at sriniwork@yahoo.com.

One thought on “Indian IT Service & Innovation

  1. The Application landscape has undergone a change, Infrastructure is now going to the cloud (different model but still scope for reducing costs). Once the knowledge has moved offshore, there is very less control that is present in the organizations locally – they will have to depend on the IT Service Providers for future. Innovation can happen only where the action takes place – that will eventually start taking place also.

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