Indian IT Industry: Quick facts• Impressive 27% CAGR over last 5 years• Key contributor to India’s Re-Branding, it account...
Indian IT Industry SWOTSTRENGTH:                           WEAKNESS:* Skilled manpower availability /   * Known as low-cos...
IT Industry LandscapeGlobal IT Industry Size: US$ 1614 BnIndian IT Industry Revenue: US$ 71.7 Bn (Growing at CAGR 27%)    ...
IT Products IndustryMarket Size (2007)    Market Size (2011E)      CAGRUS$ 250 Bn            US$ 339 Bn               7.9%...
IT Services IndustryMarket Size (2008)        Market Size (2012E)     CAGRUS$ 360 Bn                US$ 441 Bn            ...
IT Hardware Industry Market Size (2008)   Market Size (2012E)       CAGR US$ 594 Bn           US$ 683 Bn                3....
Domestic MarketGrowth 1.0 (2003 – 2008)•   Off-shoring Revolution•   Unprecedented growth of Indian Economy as well as in ...
Industry Megatrends• Strategic M&As / Alliances for Platform creation• Alliance-driven Sales model• Greater Partnership wi...
Era of Strategic Alliances
Outsourcing Relationship - Roadmap                       Source: Harvard case-study
IT / ITeS Industry: Challenges•   Growth: Organic / Inorganic, linear vs. non-linear•   Coping with speed of change and co...
Strategic options to cope with these Challenges• Understand Competitive Strategy; Invest in Execution Capability• Industry...
Strategic options …• Move beyond Delivery Capability: Understand Client’s Business   – Because your customer may not under...
Up-skilling trends in IT Industry• Building innovation culture    –   Foster Innovation and Creativity, Revolutionize serv...
Up-skilling trends…                                                    (2)• Developing Strategic Thought Process   – Strat...
Up-skilling trends…                                                             (3)•   Product companies     – Customer ce...
THANKSPlease share your comments: mrinalsri@gmail.com
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Indian IT Industry Up Skilling Trends

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Exploration of up-skilling trends (most popular themes for middle / senior management teams) in Indian IT Industyr: Contextualized by SWOT analysis and examination of Industry megatrends

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Indian IT Industry Up Skilling Trends

  1. 1. Indian IT Industry: Quick facts• Impressive 27% CAGR over last 5 years• Key contributor to India’s Re-Branding, it accounts for 7% of India’s GDP, and 35% of Export• Attractive Sectors: Government, healthcare, education, telecom, Financial services• Domestic IT market witnessing huge growth• Less than 3% of people in India own a computer today (1/5th that of China). Huge potential• Government key spender through its ambitious eGovernance Projects (INR 23,000 Cr. Worth projects envisaged under Five-year Plan launched in 2006)
  2. 2. Indian IT Industry SWOTSTRENGTH: WEAKNESS:* Skilled manpower availability / * Known as low-cost destinationElaborate training infrastructure * High Attrition, Rising salary* Mature GDM, Quality Processes levels and other cost bases* Cash-rich; Can invest in * Linear business model andinnovative business models concomitant scale-diseconomyOPPORTUNITIES: THREATS:* Exploding domestic market * Economic uncertainty /* High government spending and Currency fluctuationsexport-promotion Sops * Other emerging competitors* Biz-Model innovation for SMBs * Protectionist sentiments
  3. 3. IT Industry LandscapeGlobal IT Industry Size: US$ 1614 BnIndian IT Industry Revenue: US$ 71.7 Bn (Growing at CAGR 27%) *2009 Data
  4. 4. IT Products IndustryMarket Size (2007) Market Size (2011E) CAGRUS$ 250 Bn US$ 339 Bn 7.9% Trends: – Stiff competition, Rapid technology changes – Changing customer needs forcing frequent product introductions – Cloud computing to gain momentum – Security issues becoming increasingly important Concern: – Growth rate expected to be subdued going forward – Customer-centric Innovation – Piracy major concern (Global loss ~US$ 48 Bn)
  5. 5. IT Services IndustryMarket Size (2008) Market Size (2012E) CAGRUS$ 360 Bn US$ 441 Bn 2.8% Services lines: – Projects based – Outsourcing – Support / Training Trends: – Outsourcing to grow, but enhanced pressure on billing rates and Top line growth – Big players to try moving towards • Higher value-add services • Greater workforce utilization, and • Lowering SG&A expenses
  6. 6. IT Hardware Industry Market Size (2008) Market Size (2012E) CAGR US$ 594 Bn US$ 683 Bn 3.6%Growth rate in Asia is three times the growth rate in North America Trends: – Cost optimization across value-chain (Design, Manufacturing, Warranty, Operations etc) – Increased focus on R&D – Supply chain optimization required for reducing inventory
  7. 7. Domestic MarketGrowth 1.0 (2003 – 2008)• Off-shoring Revolution• Unprecedented growth of Indian Economy as well as in Domestic ICT demand; Revenue growth of 300%• Domestic demand mainly led by large Corporate / Public sectorGrowth 2.0 (2010 Onwards)• Growth to be led by End-users, SMBs• ‘Consolidation’ and ‘Leveraging’ of IT and telecom infrastructure built in Growth Phase 1.0, to realize greater business efficiencies and launch innovative product/solution offering• Increased adoption and acceptance of ‘game changing’ technologies• Governments’ economic stimulus is unlocking market potential
  8. 8. Industry Megatrends• Strategic M&As / Alliances for Platform creation• Alliance-driven Sales model• Greater Partnership with client for End-to-end offering – Larger share of wallet and connecting with stakeholders so as to create barrier to entry• Sharper customer segmentation, Sub-Verticalization and Domain-Specific Branding• Multiplicity of Business Models and Growth Agendas• Cost optimization across Value-Chain
  9. 9. Era of Strategic Alliances
  10. 10. Outsourcing Relationship - Roadmap Source: Harvard case-study
  11. 11. IT / ITeS Industry: Challenges• Growth: Organic / Inorganic, linear vs. non-linear• Coping with speed of change and continually innovate / reinvent itself• Develop innovation capability. Also ability to sell Innovation• Successful differentiation (Branding)/ staying ahead on the curve (Business model Innovation)• Identifying strategic targets for Acquisition / Alliances. Quantifying Synergy• Alliance management. Moving up the value-chain with clients• Ability to sell high value-add services (e.g. Business Process Integration)• Transitioning top-talent from Technocrats to Business Managers• Sales team need to understand data and communicate Business Value of IT• Attrition
  12. 12. Strategic options to cope with these Challenges• Understand Competitive Strategy; Invest in Execution Capability• Industry is in Growth stage hence Identify Niches, Innovate in Business Model and invest in Branding• Scenario Planning: Understand forces shaping Business Landscape• Change Management - to successfully transition Organization• Appreciation of Marketing, and Customer-Centric Innovation• Co-opetition: Cooperate in Value-Chain, Compete in Core-competence• Develop capability of Cross-cultural Integration, Strategic Alliance Management and Strategic Account Management
  13. 13. Strategic options …• Move beyond Delivery Capability: Understand Client’s Business – Because your customer may not understand Technology• Create various platforms to bring together key Decision Makers and enable them to experiment with IT• Proactively build enhanced awareness to transformation potential of IT adoption• Evolve multi-tiered Capability Enhancement Strategy – Tackle knowledge-attrition of your Senior Managers – Create Leadership Pipeline; Support transition through Leadership stages• Strategic Human Resource Management – HR as Strategic Partner. Alignment with Business Strategy – Robust Supply Chain, Continuous re-skilling, Attrition Management
  14. 14. Up-skilling trends in IT Industry• Building innovation culture – Foster Innovation and Creativity, Revolutionize service offering – Successfully differentiate from overcrowding competition – Identify approaches to non-linear revenue growth – Building a learning organization (Knowledge-centric organization)• Planning under uncertainty – Appreciate the changing Business Dynamics – Discern inflection points. How current business models might be rendered obsolete – Establish organizational ability for adapting to possible futures• People management for higher performance – Energizing the workforce – Leading high-performance teams – Leading in a matrix organization – Influencing without authority – Managing the new generation talent - tools to motivate people
  15. 15. Up-skilling trends… (2)• Developing Strategic Thought Process – Strategic Planning Process – Strategy Execution – Competitive Strategy, Globalization Strategy, Corporate Strategy• Customer Centricity – From being operations/product focused to being customer focused and developing the sales and marketing competencies – Silo-busting that promotes Customer Focus• Leadership Development – Transitioning through Leadership Stages (Ram Charan’s Model) – Change management: Overcome overt and covert resistance to change – Self Leadership: Breaking the inward looking mould – Looking at the big picture, developing a vision and motivating people to achieve that vision
  16. 16. Up-skilling trends… (3)• Product companies – Customer centric innovation – Leveraging informal networks for Innovation• Corporate teams – Finance for Non-Finance Executives – Value creation through M&A – Post-merger integration• Sales and Marketing – Accelerating Sales Performance – Relationship management : Engaging the client like a strategic partner – Marketing Strategy, Services Marketing, B2B Marketing• HR Teams – Aligning HR with Business Strategy – Strategic Talent Management – Cross-cultural integration
  17. 17. THANKSPlease share your comments: mrinalsri@gmail.com
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