Indian IT services companies: environmental changes and future strategies

Abstract

The Indian software industry has been in focus in the last two decades due to the high growth in the sector and the changes it has brought in the society. From the days of data processing and body shopping to the stage of being partner and consultant to major companies worldwide, the IT industry has come a long way. The Indian Software industry has evolved over a period of time and has reached a critical juncture in its growth, where there are multiple factors affecting its sustainability and future prospects. The intention of this paper is to scan the environment of IT Services companies in India. There are several factors affecting the Indian IT industry at this stage, such as the impact of foreign exchange, cost pressure, pricing pressure, technology changes, cloud computing, new competitors, non-linear business models etc. In this project, the technology and the structural changes at hand and visible over the horizon are evaluated. The technology changes in general and cloud computing specifically are evaluated along with its impact on the companies. Similarly an evaluation of increased competition and non-linearity model for growth has been undertaken. The project has taken the general patterns in the history of this industry to see how the future will shape out and propose the changes these organizations will have to undertake to be competitive. The literature references are used to understand some of the steps taken by the organizations in this industry.