IT firms’ biz model could pose threat to growth
Among the large Indian IT services companies, Infosys has been the most vocal about its product and platform strategy in showcasing various solutions. Sanjay Purohit, senior vice-president and global head for products, platforms and solutions (PPS), Infosys, said, “We cumulatively secured a total contract value of over $600 million and are working with more than 70 customers in the products and platform space and this is beside Finacle, which has close to 150 customers.”
At present, Infosys derives only 6.1% revenues from products, platforms and solutions business. However, the Bangalore-based IT firm aspires to take it to 33% in the next five to seven years, which would imply some “inorganic growth because organically it is not easy to grow at that rate”, Purohit said.
However, many analysts privately wonder about the seriousness of product strategy by Indian IT companies as many of them do not boast of any board representation of individuals from such backgrounds. The presence of board members coming from a products background would certainly provide the strategic push. Industry experts feel that one of the biggest challenges these companies will face is getting the right kind of talent. Indian companies are used to picking up talent from engineering
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