This is heartening. However, it's also a period of big change where both technologies and business models are transforming and unless Indian IT providers keep pace, they risk being left behind. The most visible change is the consumerisation of technology, with gadgets in the hands of consumers coming with a lot more computing power.
The modern cellphone, it is said, has more computing power than all of Nasa in 1969, when it put two astronauts on the moon. Gadgets, along with newer means of interaction like social media and microblogging and storage technologies such as cloud, are changing how technology is used and the way consumers interact with corporations. To remain relevant to their customers, IT firms must build skills in these newer technologies in ways that may be different from the past.
The historical advantage of writing miles of code at more competitive rates is no longer as relevant as organisations are looking for service providers and vendors that can help them achieve their business goals.
And service providers must be capable of understanding and talking the language of business and give them value for money. The $108-billion Indian IT industry will have to address both these issues: of changing technologies and of wiring themselves differently to speak the language of business. They must find intelligent ways to grow revenue without adding a corresponding number of employees.
One way that they can incorporate more innovation is by aligning themselves with younger, more innovative companies, both overseas and in India. The Indian IT ecosystem is now beginning to develop some vibrant product and technology firms.
For instance, an Indian IT startup, whose technology helps to analyse the performance of Android apps, is learnt to be on Facebook's acquisition radar. Indian IT biggies also need to engage actively with startups here and take advantage of opportunities emerging on their home turf.
