As we all know that India is the
place of Information Technology and global firms opinion is simple-
"Indian Software engineers can do anything". Indian IT companies
design to manages complex systems world over and are very competitive. The
global economic glut even created more opportunity for Indian IT firms given
their competitive pricing power. The global serving companies also adopted
Indian IT firms approach and now price war situation is in the marketplace
during new contract or renewal of contract.
Last three years global IT environment
changed wherein startup's started taking the center stage with tons of funding
by PE, VC or Hedge fund and attracted the best mind of the IT industry. The
change in dynamics increased the attrition rate in IT industry especially in
India. It impacted Indian firm in training, retraining and retaining cost and
ultimately started impacting their margin.
In my point of view, most of the
Indian IT firm are cash rich with number of resources sitting on bench. Indian
IT firms should open startup business unit and start developing their own
services or platform or application covering both B2C and B2B segment.
Down the line, post successful
adoption of product line from Startup business unit across global level given
their current reach, they can easily transfer those product line and get the
valuations. In my point of view, they can reduce the risk factor attached with
current or future IT spending and at the
same time create value for their shareholders.
