The demand for IT services continues to be strong. Consistent double-digit growth over the past decades is a testament to the rising demand. Automation is now integral to nearly all processes. Capabilities to train and skill people to acquire new skills are limited. India is one of the countries that has succeeded in building an IT skilling and training infrastructure that can about manage this demand.
I joined TCS in 2000. I think we were just under 10000 professionals in the company then. Today they are 500,000 strong, and the numbers are rising. Deal sizes today with the Indian IT majors now go into their billions.
However, the Indian IT companies business models have hardly undergone any change. They continue to be skilled resources suppliers to the ever-increasing IT needs of the world. Look at the ubiquitous requirement of today’s world. IT solutions are deployed as cost reduction and efficiency improvement measures in a recession. In times of growth, automation is used to maintain and keep pace with production.
I do not envisage the situation changing over the coming decades. Companies like TCS and others will continue to grow. Staffing needs will rise, and these companies’ size and revenues will continue to grow consistently.
The companies will keep talking about going up the value chain but make no change to their business model. And why should they? The existing models are doing great for them.
Startups are betting on the domestic consumption of India. With the rise in incomes, this segment will continue to grow exponentially. These will operate on an online-offline model. The talent pool available in the country can easily meet the startup IT skill requirements.
As gross capital formation shifts in favor of the private sector in India (Today, it is still abysmally small, around 22 percent), the economy may start feeling the need to develop innovative solutions. It is then that a new cycle of higher-skilled people will emerge. It is these changes that will drive change in the IT landscape of India.
The current IT companies will continue to service the needs of the global economy. The emerging domestic-driven startups will be the harbinger of change in the IT landscape of the country. I think this may happen in a decade.