Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 10 July 2025

It's an Era of tech Fights

 It's an Era of tech Fights, world Economy is the Battleground

Extract from the article:
India’s IT sector stands precariously balanced amidst a complex web of external pressures and internal aspirations. The industry, a linchpin of India’s economic growth, now faces formidable challenges from escalating global tariff wars, primarily originating from the United States. These tariff impositions cast shadows of uncertainty over India’s software services exporters, disrupting a market that was just beginning to gather momentum after recent slowdowns. Economic headwinds including fears of recession add layers of unpredictability, affecting investment climates, client spending, and hiring trends within the sector.

Simultaneously, the sector is caught at a crossroads of innovation and protectionism. While tariff wars threaten to curtail the free flow of software services exports, burgeoning areas such as artificial intelligence and automation offer a silver lining, providing avenues for differentiation and competitive advantage. However, this delicate dance requires India’s IT firms to navigate not just geopolitical and economic turbulences but also recalibrate their strategies to harness AI innovation effectively. Hiring freezes and cautious recruitment rhythms are emergent, indicating a wait-and-watch approach by corporates amidst this uncertain backdrop.

My Take:

A. MNC Hiring in India
“India’s software exports reached a remarkable US $320 billion in FY23, a steep climb from earlier projections of $40 billion in 2020. This exponential growth underscores the vibrant vigour of our IT sector, propelled primarily by computer, information technology, and telecom-related services. However, the ongoing tariff wars and recessionary fears serve as disrupting variables that could influence this trajectory.”

Looking back at this perspective, it is clear that the expectations I had articulated were ambitious but necessary to highlight the sector’s potential. The current challenges of tariff barriers and economic constraints simply reaffirm the complexity of sustaining such growth. Yet, the past data-driven optimism provides a foundational understanding — the Indian IT ecosystem is resilient but not impervious. The sector must now leverage its diversified portfolio and increasingly innovation-driven capabilities to withstand and evolve through this turbulence. It is a quintessential inflection point where past projections meet present realities and future strategies must be meticulously crafted.

B. India Brain Factory of World
“To truly gauge the impact of external factors like tariff wars on software exports, a detailed analytic framework incorporating current export volumes, growth metrics, and talent contributions is essential. India’s immense pool of software engineers is not just a resource but a formidable competitive edge that underpins export growth. However, the sector’s sustainability hinges on adaptive strategies, data-backed insights, and a nuanced understanding of global market demand.”

Reflecting on this, I realize the indispensable role of empirical analysis in navigating the present scenario. The industry’s brainpower is indeed an asset of unparalleled magnitude, but it must be complemented by strategic agility—particularly in harnessing innovations such as AI. This approach is vital when contending with unpredictable geopolitical shifts like tariff disputes. My earlier emphasis on robust data analysis remains profoundly relevant, particularly as companies recalibrate hiring and investment decisions. It is through this blend of analytical rigor and talent optimization that the sector can transform challenges into growth catalysts.

Call to Action:
To policymakers and industry leaders alike: the time is ripe to adopt a cohesive strategy that transcends reactive short-term measures. There must be concerted efforts to engage in diplomatic dialogue to mitigate tariff skirmishes while simultaneously fostering an environment primed for AI-driven innovation. I urge industry stakeholders to deepen investments in skill development specifically aligned with emerging technologies and enhance data analytics capabilities to foresee and pivot in a rapidly changing global landscape. The Indian IT sector’s resilience has been proven; now is the moment to solidify its future-proof standing by marrying innovation with informed, proactive policies.

With regards, 

Hemen Parekh

www.My-Teacher.in

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