Managing Non-Linear Growth in the Indian Software Industry
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Paper Presentation at IIM Bangalore on the Challenge faced by Indian IT Industry in creating non-linear growth models
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Managing Non-Linear Growth in the Indian Software Industry
- 1. The Indian Software Industry Managing non-linear growth Moving up the value chain - A Practitioner's Perspective - C V Jayanthi – Independent Consultant Pooja Sharma – Sr. Consultant, Leading IT Company Excerpt of Paper Presented at IIM, Bangalore
- 2. CONTENTS • Points of Inflexion • Non-linearity via industrial revolution • Non-linearity in branch next door • Varied views of the elephant • Moving Up the value chain • Back to first principles 2
- 3. Point of Inflexion Growth drivers Diminishing marginal utility Cost Arbitrage Abundant Resources 3
- 4. Non-linearity via Industrial Revolution! - creation of specialised units Structural -participative labour engagement models changes : -outsourcing non-core work value – added products Specialization in India strengths : Good domestic markets - Outmoded machines -Labour issues : Large composite mills : end-to-end approach numbers, productivity : spinning, weaving, designing training 4
- 5. Non –linearity in the branch next door? Servicing – Branch, e- banking channels Functional Collections Head Office depts Sales – – central Branch + recovery + agency Circle / agency Customer, Functional Functional Regional/ depts + depts + Revenue, Zonal admin admin Compliance - sales, sales, sales, Compliance – Bank Operations Branch operation, operations, operations, Risk – Back- compliance compliance compliance management office + Tech Product – Technology + Business 5
- 6. Varied views of the elephant….. Platform based offerings – Cloud, SAAS, PAAS… Automation in low-value jobs - RIM New business models – pay as u go Cross-industry process adaptation - lean 6
- 7. Moving up the value chain - Technology for technology industry….. Futuristic technologies like robots, artificial intelligence 7
- 8. Moving up the value chain - Pricing Models Capex - Opex models Business value linked Basic – benefit- business based linked – Fixed price, transaction- SLA based dependent Time & Material, resource dependent Linear models Non-Linear models 8
- 9. Moving up the value chain – Customer perception Developed Emerging markets markets 9
- 10. Moving up the value chain – Reskilling 1 mn Servicing workforce BAU Investment Worker vs for reskilling architect/ consultant Reskilling Multi- methodology layered, multi- dimensional 10
- 11. Back to First Principles • Creativity in education • Science over engineering • Collaborate over compete • Nurture small niche units 11
- 12. Feedback / questions …. 12