India's software services providers must look for new opportunities that cater to the requirements of the next-generation users, according to Vineet Nayar, former chief executive officer of HCL Technologies Ltd.
“Is your relevance to the customer increasing or decreasing? Is the relevant customer your customer?” Nayar, who founded an NGO Sampark Foundation, pointed out during an interaction with BloombergQuint. The Indian technology companies should opt for “aggressive” and “collaborative” strategies to win contracts with the customers “who are relevant for tomorrow”, even if it comes at the cost of margins, Nayar said. “The digital is growing like nobody's business.”
Cloud computing, automation and analytics are increasingly becoming the mainstay for Indian information technology companies as clients are now implementing them on an enterprise-wide level. Also, the demand for traditional services like banking and retail is slowing.
“The environment is such where traditional services are reducing because of significant uncertainty which manufacturing companies are facing, thanks to the trade war between the U.S. and China,” Nayar said, adding the macro environment is also not very robust across the globe.
Key Highlights
- The global IT spending to grow at 7-10 percent year-on-year.
- Indian IT companies looking to reduce costs.
- Indian IT firms can easily add $50 billion in revenues if managements show guts and gumption.
- Says getting a larger share of the new digital transformation contracts is important.
- There is a lot of churn in the legacy market.
Watch the full conversation here:
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