Monday, November 1, 2010

Non-Linearlity in Information Technology Business

Information Technology business in India has grown exponentially in last 10 years to about 70 billion US Dollars in revenue and employs about 2 million directly. With the current growth trajectory continues (15 to 20%) then it will touch $300B in next 10 years or so. But there will be stiff competition from new entrants and from new locations. So, to grow and bring in non-linearity the current business model which is at present predominantly around cost arbitrage model (cost per hour) has to change quickly. This is a challenge even though as an industry we have matured and move considerably up. Shortage of quality resources in required number, lack of adequate service mentality (even though atithi devo bhavo), global economic and political conditions are the key challenges that we as an industry need to address.

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