Indian IT Services–Grow or Shrink?

My routine scan of technology related headlines today threw two pieces of reportage that pronounced diametrically opposite end states for the Indian IT Services industry.

imageOne was quoting Narayana Murthy, founder and former chairman of Infosys predicting that the Indian IT industry is poised to touch US $300 billion by 2020.

 

The other was from a leading Forrester analyst, Ellen Daley, who imagepredicted the death of traditional IT outsourcing.

 

While Mr. Murthy support his claim with areas that need to see development and progress like IT moving to 2nd Tier Indian cities, reduction in the friction that policies cause and others, Ms Daley claims that shift in innovation and emergence of cloud computing are delivering a death blow to IT outsourcing.

One, I am inclined to agree with Mr. Murthy given the rate at which Indian IT companies are continuing to make progress.

Two,.I disagree with Ms Daley chiefly because both shifts in innovation and Cloud computing are being embraced by the Indian IT companies. As companies shift gears in innovation, Indian IT companies are responding by

  1. Research and Patent Filing
  2. Opening co-innovation hubs for major R&D players

Even when it comes to cloud adoption, Indian companies are helping carve out new outsource-able business by helping companies assess clouds, migrate apps to clouds, support cloud apps via maintenance teams.

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