EFY Times  
Wednesday, August 05, 2015

 
GO
 
 
“Indian IT/BPO Industry Is On The Verge Of The New 'S' Curve”
 
Home >> Infotech >> Trends
 
“Indian IT/BPO Industry Is On The Verge Of The New 'S' Curve”  
 
If you look at the impact of the slowdown on some of the other industries, the impact of the economic downturn comparatively is very different on the IT/BPO industry, says Nitin Seth, managing director and country head, FIL India Business Services Pvt Ltd.   
Rate this news:  (2 Votes)
Saturday, June 30, 2012 IT/BPO industry is on the verge of the next 'S' curve. It's time to replace the old business models with the new ones. It's time for some new trends to come in. Trends like Big data, social media, mobile and analytics will be the order of the day and hence will cause a disruption in the older trends. The industry has no choice but to move this way, the discussion is how to go about it. We spoke to Nitin Seth, managing director and country head, FIL India Business Services Pvt Ltd about what exactly is this disruption all about and how should the industry be prepared to face it. Excerpts:

IT Industry in India, Talent pool in Indian IT Industry, BPO industry in India, Indian BPO indystry, Big data, Analytics, Mobile, social media




Is there a better word than disruption for the current phase in the BPO industry?

I think it's more of an opportunity. It's a tipping point. It's an opportunity for the industry to move to the new 'S' curve. The industry largely has been in a back office, FT-based model. But for the 15-20 years that we have been around, the knowledge that we have built-in, not just of the processes that we are delivering but the businesses we are serving is quite outstanding. That knowledge can now be leveraged given these trends to deliver something very different from what we have been doing historically. That is the massive opportunity. It may be some kind of a tipping point that you have been building this expertise as a company and now along with that there are trends like cloud coming in. Cloud is really a disruptive trend. The mobile facilitates social media, social media helps create large amount of big data. So Big data is a consequence. Big data and cloud are the two pivotal trends for me. If you look at the confluence of these two and add the growing expertise of the Indian IT/BPO organisations, I think the combination of the two will make it real for us. If the Indian IT/BPO companies were at a point where they were 10-15 years back, it would have been a negative disruption. But because we have been building knowledge and expertise over the years, I think this can be a positive disruption.

But don't you think this disruption is concentrated only to the creamy layer of IT/BPO companies and is not penetrating down?

It will lead to a bit of a challenge to the current industry structures. Whenever, there are significant changes happening, there will obviously be some who will win, there will be some who will lose and then there will a set of new players. I would expect some of the larger companies to be very aware of these trends. See, one cannot deny that these trends need investments too. The services models are very simple. The companies sell FTs, they get money and make heavy margins. They don't really have to invest much. But with this change, you have to create a proposition and it will require investments. So I would expect the larger players to take it pro-actively because most of them are sitting on very healthy balance sheets. There will be some IT/BPO companies may of smaller or mid-size who don't have that capital and that kind of vision who might lose out. This is where the message needs to go out. We need to inspire the new generation which is going to be the new set of companies. There will be some totally new companies which may not need scale. The IT/BPO industry today works on scale. The scale works as an entry barrier and it is not easy to build that scale. With Cloud and Big data, it changes the dynamics around scale. So there is really an opportunity for the formation of new companies and new propositions, which can very quickly become quite relevant. So I think a fresh generation of entrepreneurs can leverage this opportunity very well.

An obvious question from what you have just mentioned that IT/BPO companies are sitting on heavy balance sheets. Does that mean the global economic turmoil has not affected us?

Whenever there is an economic slowdown, it does affect the industry. But what happens is that there are two forces at play. One force is when a company is facing economic pressure, they start looking at offshoring more intensively. There are some things that you don't want to offshore but when it really starts hurting you, you start thinking of it. It does encourage offshoring but at the same time what also happens is that to do offshoring, you require some investments. Second is that offshoring is driven by the growth of the company. So if the growth is not happening, the company is not offshoring that much. So there are two different trends that can happen- one which is positive that because of the economic pressure, companies tend to offshore more and the second is that the companies are a little wary of that investment particularly when the growth is not happening. So there are two different trends happening. The outcome of that is there is still growth in the industry but the rate of growth has come down. If you look at the impact of the slowdown on some of the other industries, the impact of the economic downturn comparatively is very different on the IT/BPO industry.

Industry is ready to welcome these positive 'disruptive' trends but talent has been voiced as one of the major issues. At a point in time when Indian BPO industry is considered to be maturing, one finds dearth of talent for the new trends. Isn’t this an ironical situation?

I think we tend to make more noise about it than is required. In Fidelity, I am responsible for global locations. If I look at different locations that I have, by far India still offers the most attractive talent. Locations like China or near shore locations in Europe lag behind from the talent perspective. The issue is that as the CEO of a company, if you are trying to manage the profitability and financial performance, the biggest challenge is still talent from the cost perspective. We are still looking from a wage cost perspective and inflation. From a CEO perspective, it is clearly one of the areas that we worry about. It is not stopping the business but it becomes a bit of a road block. That's why there is a lot of noise around this issue. Yet another perspective can be that the way industry has grown, it has largely been self-contained. The industry did not happen because of the government. Talent is an area where government could play a role. The industry is already trying to work with the government to improve employability in terms of shaping the curriculum and the quality of teachers that we have. It is a very grassroot process. This is where the government has to wake up. If we are able to leverage all the talent that we have in the country, we will never be talking about this issue. The major issue is that the education process and system does not prepare the talent that we have to make them employable. The government and industry needs to collaborate on this. But talent is not as big an issue which will destroy the industry. But if we get this right, it can certainly aid the development of the industry.

Diksha  P Gupta, EFYTIMES News Network


Print Email Post Comment 
(Total Views: 2333)
 
Share

 
 
Infotech News
   
Only 11 per cent Of People Worry About Keeping Work Files Safe On Mobile Devices: Kaspersky Lab Survey
Detected: A Worm That Can Destroy Your Apple Mac Completely
Panasonic Introduces Toughbook CF-54; A Semi-Rugged Laptop
Xiaomi To Launch A New Version Of Its Operating System; MIUI 7
MapR Reports Record Bookings In Q22015
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

Installing Linux On Your Macbook Might Not Be The Right Thing To Do
Installing Linux On Your Macbook Might Not Be The Right Thing To Do
Reject Windows 10; Switch To Linux Instead: Free Software Foundation
6 top continuous integration tools
Facebook Developes A Solar-Powered Drone To Provide Internet Connectivity
Technology camp helps youngsters with visual
Firechat: Now Send Messages Without A Data Plan Or Network
Samsung Unveils New Tizen SDKs for Smartphones
Linus Torvalds Unveils Linux Kernels 4.2 With Major Fixes
Future warrior: Robot with a soul
IIT-Madras: A trip to the roots of technology
Angry Birds 2 Now Available For Android Devices
Microsoft Reveals The First Lumia Phone To Receive Windows 10
MTA testing 'crash-proof' technology
Google Translate Becomes Smarter
Asus To Announce Three New Smartphones At Zen Festival Event
Facebook has successfully learned how to monetize
 
   

Overall

Features
Is Windows 10 Inspired By Linux?
While Microsoft prohibits people from getting involved with its core, the Free Software Foundation criticises the tech firm for their "draconian laws"...
Top Five Free CSS Editors For Linux
A good editor is all that programmer needs for web development!...
Five Pointless Yet Awesome Linux Tricks
Never thought command terminal will be entertaining? Try these 5 commands!...
Five Apps To Help You Relax
You can enjoy the sweet relief using these productivity apps!...
Seven Little-Known Facts About Bill Gates
The great philanthropist and Microsoft founder, Bill Gates has an interesting personality....
Five Things You Will Love About Windows 10!
Windows 10 launches on July 29, here are 5 things you will love about this desktop OS....
6 Programmers Working Hard To Revolutionise Technology
In today's tech dominant world, software developers have become celebrities and role models!...
7 Tricks Every Android User Must Know!
You can enjoy the new level of productivity and efficiency by following some simple tips of Android....
9 Cool Features On Google You Didn't Know About
For all those who didn't know about it, Google Art Project allows indivduals to view artifacts from more than 600 international gallaries, present acr...
Top Four New iPhone Apps
Download these apps on your iPhone or iPad and make your life easier....
Top 5 Project Management Certifications
Everything in IT can be considered as a project. The role of a project manager is a very responsible one, for any IT-related project ...
5 Tips About HTML5 That Can Change Your Life
Internet has come a long way with HTML5. The evolution of HTML has added a rich browsing experience to HTML....
Top 10 Useful Tools For Designers And Developers
Tools and apps have long been an important part of designing and development....
5 Gmail Features You May Not Have Heard Of!
Google's email service packs many hidden features....
Top 5 Upcoming Tech Product Launches
Here are 5 exciting new tech products that will launch before the end of the year...
 
  View All
Dialogue
 
Meet Pranjal Saxena, India's 21 Year Old Electronics Wizard
Milan Ondhia of EFYTimes was in a forthright conversation with the 21 year old Pranjal Saxena from New Delhi; an aspirant at the WorldSkills meet, in ...
“We Offer Managed Document Solutions To CIO And IT Decision Makers”: Canon
Manufacturing within the country will surely reduce the cost of our devices, but manufacturing can begin only if there is the desired eco-system and w...
“One Day The End User Can Open Up A Used Battery, And Use What’s Inside As Barbecue Sauce”
Of course that is not something currently possible, but what B&B Batteries does have are some secret recipes for their very specialised battery design...
We Wish To Procure All The LED Components Within India: Avni Energy
G. Gururaja, director, Avni Energy Solutions Pvt Ltd, shares his views about the expanding LED industry in the Indian market and the company's plans i...
We Have Registered 50 Per Cent Growth In The Last Two Years: Arihant Lighting
Apart from LEDs, Arihant is associated with the promotion of renewable energy in India and therefore, manufactures various energy saving products....
   
  View All
Videos
 
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
   
View All
   
 
IFA 2014
 
IFA 2014: LG Launches 34-Inches Curved Monitor
The company is yet to confirm price and availability of the device....
IFA 2014: Intel Launches First Core M Range Of Processors
This range of processors is tailor-made for 2-in-1 devices which include a tablet and a laptop....
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
   
View All
   
 
Events
 
19th Consumer Electronic Imaging Fair To Be Held On ...

View All
   
   
 
 

home archives contact us advertise with us
           
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Electronics Bazaar
electronicsforu.com
efytimes.com
opensourceforu.com
electronicsb2b.com
Electronics Annual Guide
EFY EXPO INDIA
EFY EXPO WEST
ELECTRONICS ROCKS
EFY Awards
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter

Educational Kits
Kitsnspares.com  
 
 
© Copyright 2015 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions