The Inflexion Point for IT I mention also the IT is going into an inflexion point in India <http://articles.economictimes.indiatimes.com/2014-10-13/news/54970808_1_deepak-shenoy-capital-mind-longer-term-perspective> .
One of the problems cropping up in this space is how much some of these players are going to be relevant in the longer term and this may be a longer term theory rather than a short term one. So, Wipro for instance announcing that its headcount will come down by 33 per cent is the first time I have seen a IT big player like Wipro talk about reducing headcount and increasing efficiencies. Our players have largely been darlings of inefficiencies rather than of efficiencies. Technology has taken over a lot of the functions that people use. So a lot of the IT space changes will have to be adopted by our players. While the BPO boom has come and gone, India still retains a huge advantage in the software outsourcing space. However the traditional business lines such as application maintenance and development may look to be overshadowed by cloud based services and products – where a company may have been had “implementations” of Peoplesoft or such, today they could get the entire configuration managed on a private cloud, which will have a fraction of the cost and for far fewer people. Our IT companies will have to move to these kinds of technologies. It would be best if they actually owned the Rackspaces of the world, but otherwise, they’ll have to adjust to a different world – smaller teams and more efficient delivery. Our startups have shown that we have the talent and the skill, but the IT services space is a behemoth and will need to adapt. The question really is – will the big players change, or will there be smaller, more nimple companies that will replace them? -- -- NIFTYVIEWS.COM NOW A FREE OPEN SOURCE WEBSITE. http://www.niftyviews.com/ Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture.The administrator of www.Niftyviews.com just provide a platform for the authors to express their opinion and take no guarantee for the genuineness of the same."ANY member of this forum doesnt prepare or publish any research report; or ii. provide research report; or iii. make 'buy/sell/hold' recommendation; or iv. give price target; --- You received this message because you are subscribed to the Google Groups "Niftyviews.com" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
