Lots for Indian IT to Achieve
The IT services industry, on the whole, is rising with the global digital tide. That gives a basis for Narendra Modi’s hope that the upcoming decade will be India’s Techade.
By ET Bureau | Updated:
Tata Consultancy Services’ reported growth in revenue for the fourth straight quarter fuelled by deals — as clients continued to spend on digital services during the pandemic — indicates the huge potential of going digital. The IT services industry, on the whole, is rising with the global digital tide. That gives a basis for Narendra Modi’s hope that the upcoming decade will be India’s Techade.
Work from home has forced companies to go digital. If one company goes digital, others in the sector have to follow, to stay competitive. This will end up making processes and lines of business digital, enhancing efficiency. Companies will be able to do many things better and differently. It would also give more work to the IT services industry, provided these companies acquire domain knowledge and the capacity to innovate better ways of doing business, apart from moving up the technology ladder, given that artificial intelligence will automate many types of work that they execute. India has the manpower and can develop the expertise to play a big role in the global digital transformation. Challenges such as driving growth in revenue per employee in IT companies must be addressed. This calls for acquiring new skills and new ways of doing things to achieve higher productivity. Indian IT companies should be able to deploy different kinds of artificial intelligence, as appropriate, in their offerings. That means acquiring both new tech skills and intimate knowledge of the business in which these are sought to be deployed.
The technology services sector is valued at around $1 trillion. A recent Nasscom study estimates India’s technology services industry can reach $300-350 billion in annual revenues if it can win in the cloud, artificial intelligence, cybersecurity and other emerging technologies. Perhaps the way to go for the older IT companies is to set up internal startups to come up with the nous they lack at the moment. Doing more of the same will not do, if Indian IT is to avoid terminal decline.
Work from home has forced companies to go digital. If one company goes digital, others in the sector have to follow, to stay competitive. This will end up making processes and lines of business digital, enhancing efficiency. Companies will be able to do many things better and differently. It would also give more work to the IT services industry, provided these companies acquire domain knowledge and the capacity to innovate better ways of doing business, apart from moving up the technology ladder, given that artificial intelligence will automate many types of work that they execute. India has the manpower and can develop the expertise to play a big role in the global digital transformation. Challenges such as driving growth in revenue per employee in IT companies must be addressed. This calls for acquiring new skills and new ways of doing things to achieve higher productivity. Indian IT companies should be able to deploy different kinds of artificial intelligence, as appropriate, in their offerings. That means acquiring both new tech skills and intimate knowledge of the business in which these are sought to be deployed.
The technology services sector is valued at around $1 trillion. A recent Nasscom study estimates India’s technology services industry can reach $300-350 billion in annual revenues if it can win in the cloud, artificial intelligence, cybersecurity and other emerging technologies. Perhaps the way to go for the older IT companies is to set up internal startups to come up with the nous they lack at the moment. Doing more of the same will not do, if Indian IT is to avoid terminal decline.
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