Indian IT Trends - FY 2009 Vs my predictions

Indian IT industry is till a GROWTH story in biz world. Four years ago Saurabh and I spent countless days-n-nights doing a primary research to assertain the trends in Indian IT industry for years to come. The research took us places and won accolades, now is a good time to check our predictions vis-a-vis realities today.
Indian IT Industry clocked revenues of $47 billion in FY2009. Below is summary of key points from our predictions and their validity today

1. Product Development: On Track. The contribution of s/w products in total revues is still minor. This is changing slowly with companies investing in Ideation, product development read; RnD & Consulting services. Indian IT had some amount of success in delivering value from Consulting Biz but this remains pre-dominantly a game for Big guns of IT - IBM, Accenture, EDS etc


2. Flexible Business Models: Meet Predictions. As predicted the complexity and adaptation of new business models is increasing. Customers with large & small outsourcing contracts DEMAND instant cost savings, reliable service and better usage of available resources. Recent quarters have seen customers demanding more offshore leverage to the tune of 90% delivery from offshore and max 10% onsite presence. Other business model includes revenue sharing, pay per usage, IT providers buying out service divisions of large clients with assured business deals for 10-year periods. Eg. TCS & Wipro buying out captive units of Citi in India with assured business for 10-year periods


3. High Growth Biz Areas : Remote Infrastrucutre Mngt. Meet Prediction Indian It companies are increasingly winning RMS deals by competing with global players. Deals won by Wipro & HCL are quite evident. This segment of biz promises domestic IT market, Wipro tech winning deals to provide services to new Telecom entrants while pushing aside IBM is a major win for Indian IT

Glad our predictions are in-line with growth of industry.