What growth phases do you see in the Indian software industry?
There will be three growth waves. During the first wave, it will be software for telecom covering areas such as mobile telephony and wireless application protocol. The second wave will involve multimedia and the third wave will cover IT-enabled services.

Which software products will drive growth in the industry?
We have only a few companies specialising in software products today. For, product specialisation requires huge capital and fund sources were limited in the past. However, this scenario is changing. New avenues are opening up and soon you will see a lot of niche-products hitting the market. Even banks and financial service companies might come out with niche products.

Do you foresee an acceleration in mergers and acquisitions in the Indian software industry?
Yes. There will be quite a few mergers, alliances and partnerships happening in the industry. They could happen for multiple reasons such as for acquiring technology and for widening customer-base. However, there should be more alliances within Indian software companies which is not happening. Probably, software players are suspicious of each other.

The biggest challenge facing the industry today is: identifying a target company, how to value it and finally how to integrate it with their existing business. Anyway, TCS would like to form technology alliances and partnerships with end-users. We might even consider proposals brought in by investment bankers.

What are the challenges before the Indian software industry today?
Infrastructure, acquiring talents and retaining manpower. These are some of the challenges facing the industry today. Software is a volatile industry. It is difficult to estimate the impact of technology on a company.

Is there a shortage of skilled personnel proficient both in programming and segments?
I believe skills need to be built here. You cannot get skills readymade. However, Indian universities should look at multi-disciplinary programs.

How can the Indian software industry retain talents?
Demand for skills outstrips supply. Retention of manpower does not work on any magic formula. If people stay back, it is because of clear professional excitement. Hence, the system must support creative people. The environment should be exciting and for enriching both for the team and the individual. People should get an opportunity to learn and apply. And they should be rewarded fairly.

What initiatives should Indian software companies take to turn out high-performing results?
To become high-powered organisations, Indian software companies need to become more visible and be exceptional in their chosen areas. They should have narrow skills.