It is not a question of, “ Can ? “
It is a question of , “ When ? “
And the answer is , “ Now “
Business Line ( 04 Feb 2017 ) carries a news report with following headline :
“ Trump forces IT Inc to face its Y2K moment “
It goes on to read :
“ It could be the end of India’s Information Technology (IT) services industry, as we know it.
If Y2K gave wing to a fledgling industry in the early part of this millennium, making it one of the biggest recruiters of young talent, the big boys of the Indian IT industry are now being forced to TRANSFORM THEIR BUSINESS MODELS in a bid to counter any potential downside from US President Donald Trump’s call for tighter immigration laws and a stricter H-1B visa regime.
According to executives in the IT industry, the CHANGE IN STRATEGY is two-pronged —
* abandon the path of TAKING TALENT FROM INDIA ON WORK VISAS to dip into the local labour pool, and
* speed up the transformation to a business model that is less reliant on headcount and more focussed on ADOPTING NEW TECHNOLOGY PLATFORMS.
“ The industry had already embarked on this journey. Now, this will be done faster to ADOPT TO THE NEW PARADIGM,” said the Chief Executive Officer of a leading IT company.
This model was fine until now, as Indian IT companies relied on low-cost skilled labour to be competitive in terms of pricing while delivering value to clients.
But the rules of the game are changing. AUTOMATION and the shift towards DIGITAL TECHNOLOGIES are the most critical issues facing the industry. These new beasts do not need a large workforce unlike earlier projects.
“The fact is that the industry is also changing significantly in the DELIVERY-MODEL focus with ARTIFICIAL INTELLIGENCE, CLOUD, ROBOTICS etc coming in very rapidly.
Do read :
I have tremendous faith in the abilities of our IT guys , who have made India , a SOFTWARE SUPER-POWER
Sixteen years ago , they saved the World Economy from a virtual collapse on the midnight of 31 Dec 1999 ( as news from around the World flashed on TV screens , saying , “ Thanks to Indian geeks , no planes have been reported to be falling off the skies !” )
04 Feb 2017
www.hemenparekh.in / blogs