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Future of indian it industry 2013


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Future of Indian IT industry as of 2013.

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Future of indian it industry 2013

  1. 1. FUTURE OF INDIAN IT INDUSTRY - 2013 Thought Paper by Red Apple Inc… Author: Ramesh K Meda, CTO
  2. 2. ©RedAppleInc About Red Apple Inc… • Red Apple Inc is IT Services and Management Organization with focus on – Management Advisory Services – Product Management Services – Global HR Staffing Services – BPO & KPO Services
  3. 3. ©RedAppleInc The wave until now… • Good – We were riding the wave of IT Services and may I say it has done wonders to Indian IT industry and many metros in general – Y2K seem to have taken IT Services business to a height that most of us did not imagine – Many graduates got into IT profession, even though their education had nothing to do with it (was it ever) • Bad – IT industry developed only one expertise… “Yes sir, what can I do for you” or also known as service industry – Organizations started out peddling titles without merits • Ugly – It clearly killed original thinkers of breeds like IT Application / Product Developers, Architects, Business Analysts, Product Managers
  4. 4. ©RedAppleInc So what is happening now ? • Reality – India enjoyed about 7% of all the work outsourced from multiple countries – And Yes, we did not focus enough on 93% that can be outsourced, why, simple, it was easy to body shop than to take ownership of deliverables • Head count of chair warmers – Organizations grew large with “School bus” approach (One driver and may kids enjoying the ride) – With close to zero value add and busy under cutting of revenue of other organizations, we are at the bottom of the value chain today • Demand vs. Supply – Our education system, has fallen short of generating “job-ready” professionals. We believe still in “Teaching” vs. “Helping them learn” – Current demand of all-in-one warrior breed simply does not exist in the quantum to satisfy the demand
  5. 5. ©RedAppleInc Future of IT organizations • IT Services organizations – Sunset as many pandits predicted (pun intended) – Unable to reinvent themselves as they have grown too large for their own good • IT Product management organizations – Most of them maintaining “sunset” versions will possibly remain unaffected for now • BPO – Clearly set to disappear from current form into more value add like KPO • KPO / LPO / HRO – These low-cost non-core function industries are pegged to be doing well for next 5 years at least • Captive Centers – Depends on whims and fancies of the parent organization – Will disappear into China / Philippines / Mexico kind of countries, if they are not involved in core business function
  6. 6. ©RedAppleInc The NEW future… • IT no longer to be the most preferred industry for job seekers… hmm… • Small mom-and-pop setups – Original one-man show with small army is expected to emerge as new epicenter – Man who produces results is in touch with business, directly – Consulting (vs. current insulting), Management Advisory, Program Management will be new focus areas • Small and medium organization – 50-100 professionals working with singular purpose is expected to emerge as new definition of large organizations – Cost + Profit model is expected to emerge • Specialized offerings – These existed in small disorganized fashion, now expected to take centre stage • KPO… with clear value add – No knowledge, no pay… is expected to be new mantra of survival
  7. 7. ©RedAppleInc Possible Eco-System • Educational Institutions – Industry participating in education to create “employable population” • Startups – True learning ground for people starting their career – Heaven for individual contributors with experience • Medium – Large IT setups – Feed from startup – Small intake from Campus • Specialized sectors – To feed from startups and medium firms – Small intake from campus for skunk projects
  8. 8. ©RedAppleInc Conclusion… • IT Low-value-add Services Industry will shrink • KPO will emerge to be new BPO • Specialized focus services to take centre stage • Product development to be new in-thing…
  9. 9. THANK YOU…. Contact us for more information… USA +1 973 210 3030 India +91 80 4147 9204 eMail