India IT business expansion- Private sector

Even though the major IT companies in India have over the years built great technology and manpower capabilities, the focus is still on India government business. This is because very few of them have created plug and play products. Also, many of them find it more profitable to focus on overseas business where they get higher margins and the sales cycles are short.

The exception is the BFSI segment where core banking, treasury management and indeed the entire banking and financial management suite which some companies like TCS or Infosys have acquired or developed over the years. Success in business acquisition and implementation in the BFSI segment is therefore much higher than in other market segments.

Indian private sector, unlike government is not rule based, looks to plug and play solutions, rapid roll out and efficient post roll out management. Companies that have, over the years, built solutions for the private sector are successful in penetrating the Indian private sector market relatively quickly. Many of them have built long term relationships with their customers are getting repeat orders and are making a good profit.

Private sector selling is also different from government. Consulting capability and sector knowledge play an import part in both business acquisition and delivery.

Private sector is the another way to go in the Indian market.

The next blog will be on inorganic growth.