The Indian IT industry, in 2012 and 2013 has entered in a different phase of growth. This phase is going to be painful as growth will only emerge by getting market share rather than a larger share of a growing market.
Online PR News – 03-January-2013 – Hyderabad, 3rd January 2011 – Year 2012 for Indian Economy
India is clearly becoming an integral player on the global economic front. Our economic confidence registered an increase of 8 points, to reach 68 per cent in August 2012 as compared to the previous month, according to the 'Ipsos Economic Pulse of the World' survey. This makes India the fourth most economically confident country in the world. This definitely is a healthy sign. As I see it, our medium-term growth outlook is positive due to the young population and corresponding low dependency ratio, healthy savings and investment rates. Along with that, and increasing integration into the global economy also contributes to it.
Year 2012 for IT industry
We started off fairly well; we have had a phenomenal growth, and made the world look at India with a different perspective. The industry has crossed $100 billion in revenues with over 3.5 million employees, and is rated amongst the top 2 industries in India today. The financial crisis led to a slowdown, as the financial services industry was the largest spender on IT and the bubble economy of the last decade had enhanced spending on IT. With the financial crisis subsiding in the US, Europe facing the Euro crisis and the emerging markets becoming the dominant engine of economic growth globally, the Indian IT industry, in 2012 and 2013 has entered in a different phase of growth. This phase is going to be painful as growth will only emerge by getting market share rather than a larger share of a growing market.
Year 2012 for Hyderabad
Mixed, I would say. Reasons could be unstable governance, political unrest, lack of good infrastructure all put together. I think, a shift in focus is mandatory where emphasis will be on industries rather than IT.
Expectations from the year 2013
I think, and I believe fundamentally that the “raw” talent base is very good in India. The challenge is that our education system and social framework do not encourage independent thinking and creativity. We are good at doing what we are told. Our upbringing and milieu have instilled fear in our minds which has conditioned our thinking. We need to learn to overcome ‘that’ fear. We should start acting along that line. India’s growth story is here to stay. From the IT industry perspective, I see that it can be a great leveler and transform lives. They key is to make growth inclusive. NASSCOM has projected that the Indian IT services industry will clock $225 billion (Rs 12.5 lakh crore) by 2020. We feel over the next decade, close to 80% of India's IT sector growths is expected to come from the presently untapped sectors and regions.
Suggestions for improvement of IT sector
We see fundamental change in economic growth patterns across the world and these will drive paradigm shifts in the way we do business. Furthermore, massive advances in technology will further change how consumers think and interact. Businesses need to develop new, information based models. While there will be changes, the underlying human values and the expectations will not change. There are many promising opportunities and the keys ones will be around data and information – first that the power has shifted to the consumer. The consumer can not only consume information but will also have the power to create it and the ability to handle information “overload” with the right filters. This is what is going to govern the business.