Indian IT disrupts itself to get back on the growth trajectory

India’s top IT firms are back on growth path as clients they serve increasingly invest in technology to be competitive and avert business disruption from startups.A few years ago, Indian IT firms saw their traditional business model under threat from digital — a set of technologies that help clients build applications for both desktops and smartphones and access them on the internet anywhere and anytime. Global banks and manufacturing firms were cutting their spending on traditional services and shifting their budgets to digital. At the same time, growing protectionist sentiments in its main market, the US, meant that firms faced roadblocks in getting H-1B visas and had to hire high-cost resources locally. 71813380 The Indian IT industry took these challenges as an opportunity rather than a threat. It made massive investments in training and reskilling their workforce and looked at the digital disruption. Today, nearly a third of India’s IT revenue comes from digital, a segment that is growing over double digits for these firms, even as the share of traditional services is shrinking. Indian firms also increased local hiring, replicating its model of recruiting fresh graduates from campuses and offering them training before deploying them on projects. 71813401 Along the way, IT firms also found a new set of services that it could offer to clients. These include analysing the data from the use of applications to help clients make smarter business decisions as well as optimising the software for thousands of devices that users access.ET tells this story through a set of charts:Indian IT companies have gone back to campuses to hire thousands of freshers.The hiring from campuses is reminiscent of the early 2000s.Most of the fresh talent being hired is digitally skilled.The top three companies do a national eligibility test online to hire fresh engineers based on technical skills.TCS has made 30,000 offers to hire from campuses this year; Infosys has made 18,000; Wipro plans to hire 20,000 fresh graduates.Pace of hiring is faster this year than in the past few years 71813445 Indian it firms, where they employ 71813487 71813511 71813576 Digital revenue for Indian ITTCS (FY18-19)Total revenue –$20.9 billionShare of digital (28.6%) - $6 billionInfosys (FY18-19)Total revenue - $11.8 billionShare of digital (33.8%) - $4 billion 71813553 Wipro (FY18-19)Total revenue – $8.12 billionShare of digital (35%) – $3 billionHCL Technologies (FY18-19)Total revenue – $8.63 billionShare of digital (29.5%) – $2.55 billion

from Economic Times https://ift.tt/2JuLbTx
via IFTTT