Indian IT industry faces a challenging & uncertain year
2 Jan 2013 4:52 AM IST
India’s information technology (IT) industry has a challenging and an uncertain year ahead, feel sector leaders. But they believe that IT companies should use this uncertain period as an opportunity to make investments to increase their competitiveness.
A sector emblematic of globalisation and international trade, the Indian IT industry may slow down. Its export growth is estimated to be 11 per cent, down from 16 per cent in 2012.
IT companies will look at expanding their delivery capability beyond India to leverage global expertise, invest in creation of intellectual property and continue to improve the talent pool in the country.
Pegasystems Worldwide India V-P and MD Suman Reddy noted, 'The Indian IT industry is seeing growth in niche sectors like healthcare and insurance. With healthcare reforms by the US to bring a new dimension to the Indian IT industry, we expect a lot more innovation and growth in the coming year.’
According to the Andhra Pradesh IT and information technology-enabled services (ITeS) Industry Association, the sector achieved a turnover of Rs 53,246 crore in the state in 2012, crossing the Rs 50,000 crore mark for the first time. Andhra Pradesh is the fourth-largest IT exporter in the country, accounting for 12 per cent of India's IT exports.
Progress Software India V-P Ramesh Loganathan said, 'Initiatives triggered by the start of the recession in 2009 are now continuing to be relevant with pricing pressures and reducing cost arbitrage, wage increases and reduced growth.
‘The modest 11 per cent growth projected by Nasscom notwithstanding, the efforts to improve profitability and increase high value services and IP creation are actively underway, especially in Hyderabad,' added Loganathan.
Claiming that Hyderabad is way ahead of other cities like Bangalore, with a better planned growth and good core infrastructure, he called for improving the public transport infrastructure.
Broadridge Financial Solutions India Pvt. Ltd Managing Director V Laxmikanth believes that the India growth story is here to stay. ‘From the IT industry perspective, I see that it can be a great leveler and transform lives. The key is to make growth inclusive,' he observed.
Laxmikanth said the 'raw' talent base is good in India but the challenge is that the education system and social framework do not encourage independent thinking and creativity.
A sector emblematic of globalisation and international trade, the Indian IT industry may slow down. Its export growth is estimated to be 11 per cent, down from 16 per cent in 2012.
IT companies will look at expanding their delivery capability beyond India to leverage global expertise, invest in creation of intellectual property and continue to improve the talent pool in the country.
Pegasystems Worldwide India V-P and MD Suman Reddy noted, 'The Indian IT industry is seeing growth in niche sectors like healthcare and insurance. With healthcare reforms by the US to bring a new dimension to the Indian IT industry, we expect a lot more innovation and growth in the coming year.’
According to the Andhra Pradesh IT and information technology-enabled services (ITeS) Industry Association, the sector achieved a turnover of Rs 53,246 crore in the state in 2012, crossing the Rs 50,000 crore mark for the first time. Andhra Pradesh is the fourth-largest IT exporter in the country, accounting for 12 per cent of India's IT exports.
Progress Software India V-P Ramesh Loganathan said, 'Initiatives triggered by the start of the recession in 2009 are now continuing to be relevant with pricing pressures and reducing cost arbitrage, wage increases and reduced growth.
‘The modest 11 per cent growth projected by Nasscom notwithstanding, the efforts to improve profitability and increase high value services and IP creation are actively underway, especially in Hyderabad,' added Loganathan.
Claiming that Hyderabad is way ahead of other cities like Bangalore, with a better planned growth and good core infrastructure, he called for improving the public transport infrastructure.
Broadridge Financial Solutions India Pvt. Ltd Managing Director V Laxmikanth believes that the India growth story is here to stay. ‘From the IT industry perspective, I see that it can be a great leveler and transform lives. The key is to make growth inclusive,' he observed.
Laxmikanth said the 'raw' talent base is good in India but the challenge is that the education system and social framework do not encourage independent thinking and creativity.
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