A recent article published in Economic Times on US Slowdown offers opportunity to Indian IT Industry, does highlights some interesting aspect of the current market situation. I must say it’s a coincident that recently I had a lengthy discussion with one of my friends Sandeep Bansal, working in an ITeS company, about this slowdown and how it’s an opportunity for us sitting here in India. He actually came up with few interesting examples to support his point of view. In line with same I saw this article about various opportunities that Indian companies may have from the US slowdown.
From the article’s perspective the author has tried to relate and convince about the current down turn to that of what has happened in the past. I must say that he has done fairly a decent job. However the current situation relating to that of what happened in the 2000-01 was superficial, as the fundamentals and the dynamism of the given market environment has drastically been changed. Weakening dollar could be well said example of such fundamental shift.
The articles does highlight that the company though in short terms is dealing with the problem by increasing the efficiencies of its productivity improvement re-pricing and more off shoring, doing more work at its offices in India that on-site in US. We all are aware about the downturn and a probable recession that the US Economy is facing, and with elections there seems to be no respite for the outsourcing industry. With both Mrs. Clinton and Mr. Obama proposing to give benefits to the companies those are not outsourcing their work to “shores”. So there is an analytical requirement of developing or Rethinking the tactics to sustain or even tide over the downturn.
Another highlight of the article was the target verticals identified, and among the list financial service was the first. Well I do not disagree with it being on the first however dose has reservation about the sustainability of the sector in the US market as a major revenue generator for the India IT and ITeS companies. As few reports that I had chance to go through does indicates the slowness in the US Financial Sector from the technological spend perspective, with a tremendous growth opportunity for the Asia market in the same timeframe. Taking on a suggestive mode, I would like to recommend of companies to create Asian specific offerings to tap on the financial services sector of this region. Leverage on what you have learned in the matured markets and modify it for better utilization in the emerging ones.
The article does reflect on building and acquiring the “Intellectual Property”, which personally I am a big fan of. I believe with any downturn or upturn we need to build and/or revise the IP as per the changing dynamism and a look into the future. As an “IP” is what a company can differentiate it from its friends known as Competition. The ability to create uniqueness in one’s process, delivery, implementation, etc. can provide the competitive advantage that is require to tied over any downturn(s). McDonald’s targeted service time for a burger is 7 minutes delivery, no matter which part of the globe you are. That is an IP for me.
An ability to create and recreate the magic to sustain is imperative.
STORY COMING SOON!
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