This is an inflection point for IT industry: Deepak Shenoy, Capital Mind

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his views on the IT space.

ET Now: What is your view about the IT space?

Deepak Shenoy: TCS went down on Friday despite Infy's fantastic results. One of the problems cropping up in this space is how much some of these players are going to be relevant in the longer term and this may be a longer term theory rather than a short term one. So, Wipro for instance announcing that its headcount will come down by 33 per cent is the first time I have seen a IT big player like Wipro talk about reducing headcount and increasing efficiencies. Our players have largely been darlings of inefficiencies rather than of efficiencies. Technology has taken over a lot of the functions that people use. So a lot of the IT space changes will have to be adopted by our players. We will probably have to buy products.

Infy is making its first steps in that space. They have a cash pile which is the envy of most players. So they have the ability to leverage that. We will have to see how the others perform but from a longer term perspective, this really is an inflection point for IT. Some of the older players may have to go out while some of the newer players will show that they are adapting to new technologies will make the difference.