Indian IT Seeks New Focus, Growth Strategy

by Shweta Verma    Jan 08, 2014

innovationit

Since its inception, Nasscom has played an active part in the growth of the Indian IT industry, voicing all its concerns, seeking policy changes, pushing for new incentives and aligning with the pace of change. As Indian IT evolved, the industry body also adapted to the new set of challenges and opportunities. In the early years it was all about selling the idea of India as an IT superpower and dealing with the growth pangs. In the recent years, however, the industry has been caught up dealing with the economic downturn and other challenges related to political instability, immigration and so on.

However, now the Indian IT industry seems to be gearing up for yet another phase of growth, and Nasscom is all gung-ho about its new strategic focus on ‘entrepreneurship and innovation.’ The need of the hour is to go to the next stage, which would involve initiatives to connect Indian start-ups with the Silicon Valley ecosystem, believes R. Chandrashekhar, the new Nasscom President who has recently taken charge. “The last two years have seen an upsurge in the start-up ecosystem and this potential needs to be translated into growth,” Chandrashekhar said while speaking to a group of reporters.

The change in focus makes sense at this stage because the industry has already reached a certain level of growth with its plain vanilla outsourcing focus. If Indian IT has to grow further, it will have to look for newer avenues and create other options to drive this growth.

Advancement in technology has also thrown open new opportunities in areas such as social media, mobile, analytics and cloud (SMAC). These tools have made it easier for IT entrepreneurs to start with even lower budgets and create more innovative products.  

Nasscom, with support from companies like Google and Microsoft, had launched the 10,000 Start-Ups program last year. The primary objective of this initiative has been to incubate, fund and support start-ups, thereby encouraging more innovation and entrepreneurship.

Chandrashekhar, who was the Telecom Secretary under whom a Government IT department was set up for the first time, says he feels privileged to lead Nasscom in its next journey of achieving the vision and aspiration of $300 billion revenues by 2020. He believes the sector is evolving dramatically in terms of scale, complexity and innovation.

“The rapidly accelerating trend of innovation and entrepreneurship in the ICT sector impacts several domains and provides clear indicators that the journey has begun,” Chandrashekhar was quoted as saying. The changing models led by IT are expected to create an impact on other sectors including banking, financial services and insurance, telecom, healthcare, education and social entrepreneurship.