Competition catching up with India: IT honchos
The competitiveness of the Indian IT sector could be seriously threatened by other emerging locations globally unless innovative practices are employed to keep the momentum going, leading captains of the industry said.
By ET Bureau |
BANGALORE: The competitiveness of the Indian IT sector could be seriously threatened by other emerging locations globally unless innovative practices are employed to keep the momentum going, leading captains of the industry said.
���One cannot take any success for granted,��� said Wipro Chairman Azim Premji, while delivering the keynote address at the CII India Innovation Summit here on Friday.
Citing the example of the Philippines BPO industry, he said, the country was just about a tenth of Indian IT/BPO sector five years but now it is in a position to either overtake or equal the status.
The Indian BPO sector recorded exports of $12.8 billion for FY09 with the projection that it would grow by low double-digit during FY10 while on the other hand, Philippines recorded revenue of $6.8 billion in 2008 with a likely 20-30% growth during 2009.
Mr Premji felt that growth is going to be a major challenge for the Indian IT industry in the current fiscal and even a 15% rise in numbers would require certain amount of innovation.
The Wipro chairman said the Indian economy is going to open up further leading to increased competition and only innovative practices will see companies growing.
Concurring with the view of Mr Premji, Infosys Technologies CEO S Gopalakrishnan, while interacting with mediapersons said, ���we have to be always on our toes as every country globally wants to participate in the growth of the IT industry and they want to learn from us and understand.���
Maintaining that the Indian IT industry had still not reached the saturation point and some of the factors that led to its growth were still very much in play, he, however, remarked, ���commoditisation starts when innovation ends.���
On the ongoing impact of the global economic downturn on the IT industry, Mr Gopalakrishnan said, there is a consensual opinion that the worst of the crisis is over but it would take some time for recovery to begin. He also felt that the government could help the Indian IT industry by speeding up the e-governance projects as this would improve citizen services as well as stimulate the economy.
���One cannot take any success for granted,��� said Wipro Chairman Azim Premji, while delivering the keynote address at the CII India Innovation Summit here on Friday.
Citing the example of the Philippines BPO industry, he said, the country was just about a tenth of Indian IT/BPO sector five years but now it is in a position to either overtake or equal the status.
The Indian BPO sector recorded exports of $12.8 billion for FY09 with the projection that it would grow by low double-digit during FY10 while on the other hand, Philippines recorded revenue of $6.8 billion in 2008 with a likely 20-30% growth during 2009.
Mr Premji felt that growth is going to be a major challenge for the Indian IT industry in the current fiscal and even a 15% rise in numbers would require certain amount of innovation.
The Wipro chairman said the Indian economy is going to open up further leading to increased competition and only innovative practices will see companies growing.
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Concurring with the view of Mr Premji, Infosys Technologies CEO S Gopalakrishnan, while interacting with mediapersons said, ���we have to be always on our toes as every country globally wants to participate in the growth of the IT industry and they want to learn from us and understand.���
Maintaining that the Indian IT industry had still not reached the saturation point and some of the factors that led to its growth were still very much in play, he, however, remarked, ���commoditisation starts when innovation ends.���
On the ongoing impact of the global economic downturn on the IT industry, Mr Gopalakrishnan said, there is a consensual opinion that the worst of the crisis is over but it would take some time for recovery to begin. He also felt that the government could help the Indian IT industry by speeding up the e-governance projects as this would improve citizen services as well as stimulate the economy.
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