The remarkable growth of the Indian IT outsourcing sector (Software Products, IT services, Engineering and R&D services, BPO/KPO services and Hardware) has not gone unsung. Since the inception of CMC in 1974, the sector has grown to USD 100 Billion in revenues. At the same time, the industry’s share of total Indian exports increased from 4% in FY1998 to about 25% in FY2012. This saga of achievement has also entered in Dilbert’s comic characters (Asok). As labor arbitrage fades, and upcoming competition from China, Eastern Europe & Africa, the Indian IT sector needs to come up with new strategies to continue its growth. Amidst market and non-market challenges faced by Indian IT service providers, there are ample opportunities that can shape future enterprises:
Product Development. The environment is apt for IT service providers to focus on products that can be rolled-out globally. Service providers should focus on collaboratively providing complete and integrated ecosystems around leading products (ex. Tablets, smart phones).
Mobile Analytics. Smart phone adoption is on rise and will continue the upwards trajectory. With this rise and increase in content-based mobile applications, mobile analytics and mobile business intelligence will transform mobile commerce. The cloud-based analytics engine will serve mobile front-ends for sales people on the go.
Information Security. Increased use of digital devices and technologies along with always connected world (through tablets, smart-phones, and internet) will see rise in the targeted attacks. Also, as Indian government takes up eGovernance initiatives, information security becomes a key priority for government and enterprises.
Healthcare IT. Increasing focus on healthcare by worldwide governments provides ample opportunities to IT service providers. Providing healthcare on mobiles (Health-on-Go) will offer the most promise in this segment as it continues to improve convenience, cost and quality aspects. India also offers huge potential for Personal Health Record (PHR) automation market. Microsoft has already started a pilot project and other players will continue focus in this area.