Slow down in the air

North America is struggling to keep pace with the recession and its prolonged effects. Europe is already down with recession flu and there are no signs of recovery anytime soon.
The effects on this prolonged effect on IT industry in India will be of different kind than what was seen in the 2007 recession. It was job cuts all across with salary stagnation and nothing was moving. The focus was on reducing cost and stay put. However this time, it appears that the changes are going to be more prolonged or even permanent in nature.
Affluence of west seems to be getting challenged permanently and value for money would eventually prevail. This would simply mean that while business would not stop or slowdown, it is certainly going to be more value oriented.
IT Industry in India will have to cope up with providing the end customer with more value for the money than just giving them cost reduction. Businesses are going to ask the service providers as to how they can help them do their business better and generate more savings and profit.

“ IT Industry in India will have to cope up with providing the end customer with more value for money than just giving them cost reduction. “

How they can get more customers and how they themselves can be more valuable to their customers. The days of rampant consumerization is coming to an end the time for value purchase is becoming the permanent way of life.
Gone are the days when consumer would keep buying just because he had a lot of money and was hooked to changing style and fashion as if there was no tomorrow. Now, everyone will think twice and question as to why one should buy.
Indian IT companies have so far only been identified as low cost destination for IT services. Almost none of them here have been able to demonstrate real value to the end customer what Apple or Microsoft have been able to do. This will push them more with pressures on their margins and would pitch them against those companies who can bring better value to business than just cost reduction.
While, it is evident that in short term, business might grow for Indian companies, however the long term is bleak as they seem to be out of the value race already. It is high time; IT companies in India start thinking differently and not just focus on manpower supply alone.

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Picture Credits : poetsandquants,For representational purposes only

Alok Kumar

Alok Kumar is Managing Partner of SRKay Consulting group, a private equity company, nurturing innovative ventures. Alok also serves on the board of ICCL (Indian Clearing Corporation Limited - A subsidiary of BSE- Bombay Stock Exchange) as an external advisor for technology and information security. Prior to this, Alok had been Managing Director of Sears IT & Management Services India Private Limited (SHI) since its inception in December 2009 and served in the same position till very recently. Having been in senior IT management positions in Fortune 500 companies, Alok has won several national and international awards. Alok is instrumental in planning and setting up SHI and thereafter growing it to a multi-locational thousand-plus people organization. Over the last five years, with his strategic vision, Alok helped SHI grow roots in India, develop and support technology applications and infrastructure across core mainframe, cutting edge e-Commerce and big data technologies. With his unique people-oriented transformational leadership style, Alok turned SHI into one of the most valued investments of Sears, garnering great ROIs, and creating value much beyond cost arbitrage. Under his tutelage, SHI has filed two patents and is recognized widely for its best practices in various areas, the latter, currently featured in Indian Institute of Management (IIM) case studies. SHI also became a CMMI Level 3, PCMM Level 3, and ISO 20000 certified organization. Alok is a widely acclaimed corporate leader in India today. He regularly participates and leads various forums as a keynote speaker and is an author of several books in different genres. Alok has several awards to his credit. He is particularly known in the industry for his people management skills and innovative ideas in improving the productivity of employees through unique people practices. He has been credited with the following industry awards: ¬ Emerging Leader of the Year award 2013 by ¬ Game Changer CEO of the Year 2013 (SHRM) ¬ CIO 100 - The Bold CIOs - 2008 (Reliance Infosolutions) ¬ CIO - Ones to Watch Award 2008 (Reliance Industries) ¬ Extended Manager Award - CIOL 2004 (Tata Teleservices) As an able leader of SHI, Alok got SHI recognized widely in the industry with the following several awards: ¬ CII Award for HR Best Practices in 2014 ¬ Global Excellence in Outsourcing Award - AIOP (Phoenix 2013) ¬ IT Innovation Award (Design & Engineering) - Computer Society of India 2012 ¬ Golden Company of the Year - Economic Times 2011-12 ¬ 7th Employer Branding Awards - World HRD Congress (Mumbai, India) 2013: • ‘Asia’s Best Employer’ Award • ‘Best HR Strategy’ in line with business • HR Leadership Award • Talent Management Award by Bloomberg TV India ¬ Employer Branding Awards - World HRD Congress (Singapore, Asia) 2013: • 7th rank in ‘Asia’s Best Employer’ award • Award for ‘Best HR Strategy’ in line with the business • HR Leadership Award Other recognitions: Alok had served on the distinguished panel of NASSCOM's GIC (Global In-house Centers) National Council members. The council members play a key role in major initiatives of the industry and include the torch bearers of IT industry as panel members. Books and Papers: Alok is an established author, with three books to his credit. Alok’s third and latest book, a novel, “The Spy from Unaula” is a 2015 publication. A handwriting analysis enthusiast, Alok collaborated with his wife Nandani on the book, “Handwriting Speaks” in 2006. “Value Sourcing – Future of IT Outsourcing” was co-authored with Keith Sherwell (currently CIO, Altice USA) and was released in 2013. Alok also researched and published two whitepapers: a. “Creating next generation captives” talks about the best practices that are helping generate higher value from the IT company captives.

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