Things aren’t as bad for the Indian IT industry as the sombre mood among delegates at the NASSCOM Leadership Forum held recently in Mumbai tended to convey.
Indian IT industry is positively looking for innovative ways to get around challenges.
On the positive side, the report notes that while revenues from exports continue to dominate, several large firms have also begun focussing on the burgeoning domestic IT services market.
Moreover, many companies are now seeking to increase their presence in Europe so as to derisk their businesses from the impact of a slowdown in the US.
Also, Indian IT companies have begun to explore new markets such as engineering services offshoring, which alone is a $40 billion (Rs 1,60,000 crore) opportunity worldwide, according to some industry estimates.
Som Mittal, President, NASSCOM, isn’t so much worried by the challenges posed by a rising rupee, spiralling people costs and high attrition as he is impressed with the industry’s efforts to get around them. “We see an increasing level of sophistication and specialisation in IT, which are sure signs of it maturing,” he says.
— Rahul Sachitanand