EFY Times  
Monday, May 25, 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: 2294)
 
Share

 
 
Infotech News
   
10 Killer Techniques About CSS
Treeno Software Extends Its Cloud-Based Business Solutions To Human Resources
Let's Know More about Two-Factor Authentication
RS Components Offers Safety Scanners
8 Best Cameras Of 2015
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

Treeno Software Extends Its Cloud-Based Business Solutions To Human Resources
Microsoft Unveils Windows 10 Preview For Phones
New Release Xara Web Designer 11 Premium With Online Editing
Introducing Brillo, The Operating System To Work For The Internet Of Things
Microsoft To Unveil 'Flow', A Light Weight Email App
Piyush Goyal Inaugurates New Solar Passive Building Of The National Institute Of Solar Energy
Barnes & Noble Announces Amazing New Low Prices On The Samsung Galaxy Tab 4 NOOK Just In Time For Graduation And Father’s Day
WhatsApp Launches New Version 2.12.84 For Android Users
Protecode Releases The Breakdown Of A Typical Software Portfolio
The World Of Global Telecommunication Is Bound To Change
Mouser Launches Enhanced Open Source Hardware Technology Site
ReGlobe Is The Exclusive Buy-Back Partner For India’s Top E-Commerce Websites: Amazon, SnapDeal, eBay And Infibeam
Asus Zenfone 2 Now Available In US And Canada
Panasonic Brings Toughpad FZ-E1, FZ-X1 And ToughBook Range In India!
Intex Cloud M5 II, A Budget Android Smartphone Arrives At Rs 4,799
Cyanogen To Come Up With An Office In India!
 
   

Overall

Features
Top 7 Recently Launched Budget Smartphones
Competition in budget smartphone range is pretty tough in India. Here is a list of best recently launched budget smartphones...
10 Killer Techniques About CSS
Here are 10 killer CSS techniques for web developers...
8 Things You Didn't Know You Can Do With iPhone Camera
Even though you may take tons of photos with your iPhone all the time, there are probably at least a few tricks you might not know about...
8 Best Cameras Of 2015
Here are top 8 cameras that won TIPA awards...
5 Ways To Identify Hackers
Hackers are everywhere on the internet. Here are 5 ways to save yourself from hackers....
8 Best Free HTML5 Frameworks
You can build interesting responsive websites and web apps using these free HTML5 frameworks....
8 Surprising Job Skills That Can Get You Job In IT
The job scenario for IT workers has changed in recent times due to to the new technologies and shifts in business processes. Here are top 8 in-demand ...
Top 8 Highest Paying Tech Skills
Looking for a job in IT? Here is the list of tech skills that you should consider to acquire...
5 Rules To Ensure Proper Programming Style
Here are some of the best rules that help you in attaining a better programming style....
Key Rules To Build A Great Tech Team
Making IT work in any organisation is about making human connections. Here's how you can do it....
6 Best Code Editors For Realtime Collaboration
Here is the compiled list of 6 Best Code Editors for Real Time Collaboration....
Top 10 Most Expensive Gadgets In The World
Here are top 10 gadgets made for super-rich people in the world...
7 Things To Do After Buying New iPhone
Bought a new iPhone? Here are 7 things you need to do right away...
8 Gadgets To Make Your Smartphone Even Smarter!
Check out these 8 cool gadgets that will make your smartphone smarter...
10 Must Have Google Chrome Apps
Install these Chrome extension apps to boost your work productivity...
 
  View All
Dialogue
 
“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....
“Elcom Plans To Build A New State Of The Art R&D And Manufacturing Unit In Maharashtra", Reveals MD Girish V Vaze
Starting out as a small business to cater to the industry’s need for import substitutes, Elcom International has grown to be a leader in the field of ...
Delta Magnets Ltd To Enter Into JV With Chinese Company!
The company had partnered with TDK Japan for technology transfer to manufacture magnets in India....
   
  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