The IT sector of India needs to discard its old model of service providing and operations.
The old model popularly known as the ADM (Application, Development and Maintenance) is obsolete.
It is imperative that the IT sector resorts to the new model of ‘outcome based billing’ and fixed contract based services
The maturity of the offshore models has created a demand among the customers for a close proximity of the service providers which may even involve setting up of near shore stations for support.
There is a stiff competition from China, Philippines and Eastern Europe which are also proving to be low cost and competitive countries. It is estimated that by 2020 they will be a 20% stakeholder in the global IT export scenario.
A shrinking talent pool in our country is also largely affecting the IT sector. The number of employable graduates in the business sector is as low as 10% to 15% while that of qualified and employable engineers is 26% only.
IT giants like IBM and Accenture have now opened up their own centers in India with the same target audience as that of the Indian IT Sector.
The proposed development of the tier 2 and 3 cities has not gone as planned so the entire IT sector is stagnated in the 9 major cities.
It is imperative that the IT sector of India should focus on the new emerging trends like Social media, Mobility, Analytics and Cloud (SMAC).
There is a need for a total revamping of the infrastructure of the IT sector which unfortunately is pending due to fund unavailability.
Fund shortage is also affecting the medium and small IT enterprises which need a basic financial injection for their start-up.
