Are Indian IT Services Companies Facing A Disruption Risk?

Context

According to Ravi Venkatesan (a former chairman of Microsoft Corp.’s India operations), there has been very little game-changing innovation in Indian IT services companies after the global delivery model.

“There has been innovation in hiring, in training and in new service lines, but a lot of this innovation is incremental and overall the IT services business is quite commoditized as a result.”

Game-changing innovation will come from emerging technologies (a.k.a SMAC, short for social, mobile, analytics and cloud). At the core is the cloud, which is disrupting the enterprise software and hardware industry by being easy to scale up, and also cost-effective.

But Indian IT companies are wasting time defending their legacy business of writing code for and maintaining purpose-built enterprise applications.

Read more here and here and here.

Key Insight

Indian IT services companies are facing a disruption risk, as they have missed the digital technologies (SMAC) bus.

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