Indian It Services Essay
Published: February 24, 2011 in India Knowledge@Wharton
Earlier this month, newspaper headlines in India about US$5 billion worth of IT outsourcing orders expected from large U.S. banks brought cheer to the Indian IT services industry. In recent months, industry players have been expecting the return of good times, and this news reinforced their optimism. But experts say the US$60 billion industry needs to retool and reposition itself or it risks losing out on growth. According to Sudin Apte, principal analyst and CEO at research firm Offshore Insights: "Businesses in the U.S. and Europe have undergone dramatic changes. The paradigm at their end has changed and so have the needs and …show more content…
"These four verticals will emerge as growth engines by 2020," said B.V.R. Mohan Reddy, chairman and managing director of Infotech Enterprises, at Nasscom's annual Leadership Summit in Mumbai in February, one of the industry's premier events. "Eighty percent of the new opportunities will come from areas we haven't [yet] gone to," says Nasscom president Som Mittal. He sees public sector and defense also as high-potential sectors. Geographically, too, the industry faces changing opportunities. Last year, it won 62% of its business from the U.S., about 22% from the U.K., 12% from Continental Europe and 9% from Asia Pacific. But it is Asia Pacific that is growing the fastest at 24%.
Getting the House in Order
The industry is gearing up to take on the changing environment. On the day it announced lower-than-expected earnings for the latest quarter, Wipro let go of its co-CEOs Girish Paranjpe and Suresh Vaswani, both Wipro veterans of more than 20 years, with three years