Despite being a behemoth, Indian IT seems helpless in face of protectionist rich world. Quite an irony!
Indian IT sector in a mess
[ ##thumbs-o-up## Share Testimonial here - make our day!] [ ##certificate## Volunteer for Bodhi Booster portal]
- A world leader, now in distress : India is the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 % of the US $ 124-130 billion market. There is little doubt that through sheer effort and ingenuity, this industry has created something from scratch, and built India’s reputation in the world.
- A huge size : The growth of the IT sector has been sterling! In 2010, it had a market size of $ 74 billion, with $ 50 billion coming from exports. In 2016, this has gone up to $ 160 billion, with $108 billion from exports. IT majors’ earning in dollars, and racking up billions in net profits has become regular news items in leading media!
- Protectionism alert! With more and more developed countries adopting protectionist policies, enforcing stricter visa policies and advocating local hiring, the Indian IT sector is now the hardest hit. If it has to retain its health, it has to change the nature of business. NASSCOM (National Association of Software and Services Companies), the leading Indian IT lobby group, delayed its initial growth forecast for fiscal 2017/18, citing market uncertainty. In fact, NASSCOM has delayed framing any contingency plans, and it has no one else to blame. Read more on protectionism and related issues on our portal here.
- Deep Dive : Immigration is a hot potato everywhere. Read more on it here.
- Stay out Indians : Visa troubles for the Indian IT sector are not confined to the United States. After the US move to tighten visa norms, Australia announced scrapping of 457 visa used largely by Indian IT professionals. The UK and Singapore too are no longer friendly.
- The sector-wise breakup is worrisome : A sector-wise break-up of export revenue for the year 2016 shows – 56% from IT services, 20% from software products and engineering services and 22% from business process management. But future demand is shaping up differently. The drivers of future demand are likely to be sectors like retail and healthcare.
- Newer requirements, old methods : The cloud has disrupted everything. Today, software as a service (SaaS), automation, artificial intelligence (A.I.), and data analytics seem to be the drivers of future growth. The mainstay of Indian IT companies – application creation and management – is likely to see diminishing returns. But there is no national drive to reboot the sector, let alone reconfigure the hundreds of sub-par colleges churning out engineers. Read more on skills problems on our portal, here.
- Perception battles being lost : The Indian IT sector also faces the challenge of perception and in view of the rise in protectionist politicians and parties in the developed world, it is crucial. Given the popular resentment that brought the Trump administration to power, times are difficult for the Indian IT industry. In fact, receiving humiliation seems to have become the new normal – perhaps the Chinese were smarter and saw all this in the 1990s. How else does one explain strategy to build homegrown giants (Alibaba, Tencent, Baidu) and the glaring absence of even a single such brand in a huge nation like India? Read more on various issues confronting Indian industries and services sector, here, and on the ‘skin-deep’ e-commerce market in India, here.
- Local is the new global : A possible rise in local recruitment instead of exporting Indian professionals will cut into both profit margins and India’s cost arbitrage advantage, necessitating an increase in high-value products and services, and creation of intellectual property. Indian IT firms are just not tuned to do all that, and its devastating impact on local dreams will be severe. Sadly, neither the political classes nor the industry seem ready for rebooting.
- Do check out exams-focussed Confidence and Vocabulary Booster series of learning resources, here!
- Download Resources : PDFs on multiple topics available on Bodhi Resources page here. And, here are some facts and images to help the case better.
A great industry, built by toil and vision, now in doldrums
Your Comments, Ratings and Reviews are welcome below
Keep our team motivated
Amazing Courses - Online and Classroom
Useful resources for you[Newsletter ##newspaper-o##] [Bodhi Shiksha channel ##play-circle-o##] [FB ##facebook##] [हिंदी बोधि ##leaf##] [Sameeksha live ##graduation-cap##] [Shrutis ##fa-headphones##] [Quizzes ##question-circle##] [Bodhi Revision ##book##]
COMMENTS