India Leadership Forum, touted as the biggest summit of IT in Asia established the fact that the Indian IT industry would have to innovate if it has to maintain its edge over other countries. The importance of innovation to business success for Indian IT industry at this point in time cannot be denied, since there are other low-cost destinations cropping up round the corner.
According to Premji, there is a need to think differently to survive in the globalized world. He felt that a good blend of creative people and engineers are essential to push growth. “We need to build more IT-incubation hubs in India to drive innovation at a national level. The Wipro Center of Excellence is constantly striving to add more value to existing services,” he said.
S. Ramadorai, Chairman, Nasscom and CEO, TCS, too echoed similar sentiments. He felt that innovation would be the mantra for the IT and BPO sector in India.
India accounts for 65% of offshored IT services and 40% of offshored BPO services globally. However, the addressable outsourcing market is $300 billion, of which India has tapped only 10%. This means that there is a huge unexplored potential, he said, and added that there were several challenges that exist as India produces only 12,000 doctorates, while in the U.S.A., the corresponding number is 40,000.
“We need a national policy to leverage educational and communication services,” he said.
B. Ramalinga Raju, Founder and Chairman of Satyam Computer Services, highlighted the need for innovation as the mantra for success in the IT sector. He said the proportion of new services is continuously growing, while existing services are getting commoditized. He suggested working out a collaborative model for growth of the sector, which will involve participation from customers present in India and across the globe.
But is innovation easy? According to Ganesh Natarajan, Deputy Chairman and MD, Zensar Technologies, “The innovation ecosystem in India is in a fragile state right now.” He argued that there is an urgent need for a shift in focus, as “the IT industry in India has been built on the pillars of low-cost arbitrage.” “The industry now needs to move to another level,” he said.
Vivek Paul, in his new avatar as a venture capitalist, felt that it was important to inculcate the four values for those who wish to innovate. “Be alert, develop the ability and willingness to take risks, be open to change with changing market dynamics, and most importantly, aim high.”
With all those expert pronouncements on the importance of innovation to beat competition, it would be interesting to watch what strategy Indian IT and BPO industry adopts to stay ahead. Wipro for one has already taken the lead.
It has announced its intent to intensify its focus on innovation as a tool to drive future growth. Annualized revenues generated as a result of innovations account for over $100 million. Going forward, Wipro hopes to invest further in tools, technologies and solutions that deliver business value.
Will others follow suit? Lets wait and watch….
