Quite a few reasons have made 2011 a significant year for the Indian information technology (IT) services industry.
For one, Infosys, poster child of the country’s IT sector, proved it could falter. The rejig it underwent is yet to show results. Besides, the Bangalore-based company was seen facing a serious challenge to beat peers and gain market share. What’s more, it has been sued by one of its ex-employees for alleged misuse of visas.
As for Tata Consultancy Services, the $8-billion (Rs 42,616 crore) behemoth showed size did not matter when it comes to being nimble in a tough environment. The Mumbai-headquartered company, which had revenue of $6 billion (Rs 319,62 crore) at the end of 2008, went on to add another $2 billion (Rs 10,654 crore) in a difficult market.(Click here for INDIAN IT COMPANIES: WHAT LIES AHEAD)
Nasdaq-listed Cognizant has gone past Wipro. With the appointment of T K Kurien as CEO, Azim Premji made it clear he was not ready to let go of the company’s position. His bet on Kurien seems to be working, with early signs clearly showing a revival.
Finally, Cognizant also proved that being a late entrant need not mean a slow player. It not only pushed IT bellwether Wipro from its seat, but has emerged as a serious competitor for the Indian IT firms and MNCs.
But 2012 and beyond seem a challenging phase. The next three to five years, analysts say, will see many of these firms either make or break their stature.
The one issue that in the near future will keep the industry on its toes will be the visa debate. More important, the industry will have to seriously look at some of its business models, according to analysts and industry players.
