Indian IT industry: the way forward

Abstract

The IT industry in India, after the extended period of growth seems to be saturating. The study here is restricted to the IT companies domiciled in India. New, smaller entrants and entry of multi-nationals into the space has led to fierce competition, and price wars, destroying the premise of cost arbitrage which was the foundation of many of these companies. Shrinking margins and customers increasingly wanting more and more are only some of the challenges they are facing. Increasing competition from China and other BRICS countries with the same delivery premise is another huge challenge. Companies that have their major revenue streams from the service delivery components are/will face challenges related to growth. They will need to explore new avenues for non-linear, inorganic growth in order to not stagnate. The study will focus on IT companies in India in general and HCL technologies in particular. We will study the various possibilities for future growth and then shift the focus to one particular growth strategy Product development. We will look at the success factors for HCL. The following are the main focus areas on which the study has been carried out 1. Analysis of IT companies in India, current strategies and revenue streams. 2. A study of the strategies available to the IT companies for future growth 3. Key Success factors for product development/market development/ access to emerging markets a look at the heavily publicized launches over the last 5 years, reasons for success/failure of respective strategies. 4. Key recommendations for HCL on the way forward