Integrated Solutioning: The Way Of The Future
5/3/2013 12:09 PM Friday
Exclusive Interview with
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!
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