Indian IT firms need to keep faith in software, services

India’s IT industry will continue to face challenges in areas such as labor and delivery costs and competition from foreign companies, but this does not mean it should give up its focus on software and services. They do need to evolve with their customers’ buying behavior and innovate to stay competitive though, analysts urge. The Times of India published a commentary in August saying top Indian IT companies such as Infosys, Wipro, Tata Consultancy Services (TCS) and HCL Technologies, have been overly reliant on the low-hanging fruits of applications development and maintenance and remote infrastructure management for the past 10 years. While those were good markets to get into in the past, they are considered commodity businesses today, which is why local IT companies have found it difficult to cope with the uncertain market conditions. It added that TCS , HCL and Cognizant might have shown good results in their recent financial reports, these were down to short-term gains such as clinching contract renewals. Weak economy, rising competitionArup Roy, principal analyst at Gartner, disagreed with the analysis though. He said the cost challenges for India’s IT companies are mainly from the uncertain economy and market conditions, which has led to… Read full this story

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