Global economic conditions will force changes in India. IT Services are a critical component of the continued growth of jobs in highly educated positions. The growth may decline as global economic conditions change. Challenging Times in North America, Europe, and China reduce opportunities for a Dynamic India’s IT services to earn export value forcing changes.
A Dynamic India needs to see services enterprises face forced changing requirements. These changes must reflect changes for future business. These changes need to be communicated clearly to stakeholders.
The ‘human assets’ of the enterprises need investment to build capacity and capability.
Focused process changes need to build maturity of junior staff to senior levels.
The overall workforce composition must reflect demand shifts for business process outsourcing in the mid-to-long terms.
Enterprises must ‘improve their own’ to use Big Data, AI, and Data Sciences (BAD) for better efficiency, lower risk process execution, and more effective deliveries in the near future.
The investment community must be communicated changes for long term top line and margins.
Mid-calendar-year reporting for Indian IT services enterprises see statements reflecting global changes. Infosys materially reduced full year revenue estimates. Tata Consultancy Services indicated soft demand to financial analysts. Accenture saw key communications, media, and technology customers slowing, deferring, or resizing initiatives while making commitments slowly to new spend. Wipro sees customers with flat spend and possible additional changes. Cognizant sees improving opportunities in the current quarter with tight budgets for the rest of the fiscal year. Indian IT services enterprises see likely slow, or no, growth in overall service revenues and rates for the mid-term.
Indian IT outsourcers have been aggressive in offering services for customer requirements to perform data-oriented Big Data, AI, and Data Science projects. An additional customer demand area has been continued pushes to automate operations, ‘digitize’ processes exchanging data with suppliers and customers, and continue efficiency improvements in technology operations.
A result of these customer initiative areas have seen adjustments in staffing and resource allocations. Hiring, training and retention, and staff allocation planning reflects demand changes. Continuing demand changes in financial, technology, media/advertising, and retailing also affect staff. Reductions in financial transactional demand in crypto, mortgages, and business combinations also see adjustments in outsource staff for business process outsourcing and staff augmentation.
The impact on staff sees continued demand for the most skilled, and experienced, staff. Lower demand for business process outsourcing see staff reductions in process operations and customer service positions. The focus of customer demand on efficiency projects, rather than outright capacity expansions, signals lower spend in out periods as projects go to deployment maturity.
For additional analysis and notes on a Dynamic India see
http://www.ekalore.com/india-business
Comments