Markets
BSE See NSE See 39,364.20
251.46 (0.64%)
collapse Related Readings collapse

Integrated Solutioning: The Way Of The Future

| 5/3/2013 12:09 PM Friday

Exclusive Interview with

Krishnakumar Natarajan

Chairman, NASSCOM

What is your take on the Indian IT industry in its current form? How important is it to create a brand in this sector?

What I do believe is that the IT market is not a winner-take-all type of a market compared to other markets, say Auto or even Pharma. IT is a very relationship-oriented business.

How do you feel 2013-14 will be for the IT sector from a market perspective?

I believe that when compared with last year, FY14 will be better. What we have observed is that in the last six years starting 2008 when Lehman happened, everyone had certain concerns about what would happen to the financial market and the main street, which led to a sudden compression of demand. This carried on for almost 15 months. But what happened after the compression was like a spring effect. Immediately, the demand took off. In that period, though enterprises had enough cash they restrained investment in technology. So, technology spending certainly slowed down a bit. Compared to that, we are now seeing some part of the spring effect coming back. So essentially, what I feel is that the industry will be better in FY14 as compared to FY13.

For the Indian IT companies, do you think that domestic demand is going to make up a significant percentage of their business starting this year?

I certainly think so. Not only are Indian companies upping their spends, but the overall universe of companies doing so will increase. In fact, last year the export growth was about 10 per cent and domestic growth was marginally higher at 12 per cent. In the next couple of years down the line, the domestic demand will be higher than the export demand.

But most importantly, the big ticket spends are happening through government projects. Case in point being the Department of Post, Revenue Departments, etc.

But are the margins good enough in these government contracts?

Well, the volumes are large and the scope is wide. Over a period of time, these contracts will eventually be very valuable.

And is there a fear of policy paralysis that looms over such spends? Or of any kind of knee jerk change in policy? That doesn’t happen here, correct? Once the decision is taken, it is taken.

No, that does not happen here. In fact, the government is very proactive and all policymakers understand the long-term implications.

And at which level of the IT infrastructure pyramid do you see the spends happening? Software, applications, services?

To my mind, the software-as-a-service (SaaS) model seems very positive. There are interesting start-ups which are coming and saying, ‘do not bother about anything, we will take an integrated solutioning approach’. The whole model is changing.

So, those companies which operate in this domain are future winners?

Oh yes, absolutely!

 

Find More Articles on: DSIJ Magazine, Value-Added Interview, DSIJ Others, Leader Interviews, Research, Product, Large Cap

«« First « Previous |1 2 | Last ››
news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.