Future of indian it industry 2013
- 1. FUTURE OF INDIAN IT INDUSTRY -
2013
Thought Paper by Red Apple Inc…
Author: Ramesh K Meda, CTO
- 2. ©RedAppleInc
About Red Apple Inc…
• Red Apple Inc is IT Services and Management
Organization with focus on
– Management Advisory Services
– Product Management Services
– Global HR Staffing Services
– BPO & KPO Services
- 3. ©RedAppleInc
The wave until now…
• Good
– We were riding the wave of IT Services and may I say it has done
wonders to Indian IT industry and many metros in general
– Y2K seem to have taken IT Services business to a height that most of
us did not imagine
– Many graduates got into IT profession, even though their education
had nothing to do with it (was it ever)
• Bad
– IT industry developed only one expertise… “Yes sir, what can I do for
you” or also known as service industry
– Organizations started out peddling titles without merits
• Ugly
– It clearly killed original thinkers of breeds like IT Application / Product
Developers, Architects, Business Analysts, Product Managers
- 4. ©RedAppleInc
So what is happening now ?
• Reality
– India enjoyed about 7% of all the work outsourced from multiple countries
– And Yes, we did not focus enough on 93% that can be outsourced, why,
simple, it was easy to body shop than to take ownership of deliverables
• Head count of chair warmers
– Organizations grew large with “School bus” approach (One driver and may kids
enjoying the ride)
– With close to zero value add and busy under cutting of revenue of other
organizations, we are at the bottom of the value chain today
• Demand vs. Supply
– Our education system, has fallen short of generating “job-ready”
professionals. We believe still in “Teaching” vs. “Helping them learn”
– Current demand of all-in-one warrior breed simply does not exist in the
quantum to satisfy the demand
- 5. ©RedAppleInc
Future of IT organizations
• IT Services organizations
– Sunset as many pandits predicted (pun intended)
– Unable to reinvent themselves as they have grown too large for their own
good
• IT Product management organizations
– Most of them maintaining “sunset” versions will possibly remain unaffected
for now
• BPO
– Clearly set to disappear from current form into more value add like KPO
• KPO / LPO / HRO
– These low-cost non-core function industries are pegged to be doing well for
next 5 years at least
• Captive Centers
– Depends on whims and fancies of the parent organization
– Will disappear into China / Philippines / Mexico kind of countries, if they are
not involved in core business function
- 6. ©RedAppleInc
The NEW future…
• IT no longer to be the most preferred industry for job seekers… hmm…
• Small mom-and-pop setups
– Original one-man show with small army is expected to emerge as new
epicenter
– Man who produces results is in touch with business, directly
– Consulting (vs. current insulting), Management Advisory, Program
Management will be new focus areas
• Small and medium organization
– 50-100 professionals working with singular purpose is expected to emerge as
new definition of large organizations
– Cost + Profit model is expected to emerge
• Specialized offerings
– These existed in small disorganized fashion, now expected to take centre stage
• KPO… with clear value add
– No knowledge, no pay… is expected to be new mantra of survival
- 7. ©RedAppleInc
Possible Eco-System
• Educational Institutions
– Industry participating in education to create “employable
population”
• Startups
– True learning ground for people starting their career
– Heaven for individual contributors with experience
• Medium – Large IT setups
– Feed from startup
– Small intake from Campus
• Specialized sectors
– To feed from startups and medium firms
– Small intake from campus for skunk projects
- 9. THANK YOU….
Contact us for more information…
USA +1 973 210 3030
India +91 80 4147 9204
eMail CxOHire@RedApple-Inc.com