FUTURE OF INDIAN IT INDUSTRY - 2013

Thought Paper by Red Apple Inc… Author: Ramesh K Meda, CTO

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About Red Apple Inc…

• Red Apple Inc is IT Services and Management Organization with focus on – Management Advisory Services – Product Management Services – Global HR Staffing Services – BPO & KPO Services

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The wave until now…• Good

– We were riding the wave of IT Services and may I say it has done wonders to Indian IT industry and many metros in general

– Y2K seem to have taken IT Services business to a height that most of us did not imagine

– Many graduates got into IT profession, even though their education had nothing to do with it (was it ever)

• Bad– IT industry developed only one expertise… “Yes sir, what can I do for you”

or also known as service industry – Organizations started out peddling titles without merits

• Ugly – It clearly killed original thinkers of breeds like IT Application / Product

Developers, Architects, Business Analysts, Product Managers

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So what is happening now ?• Reality

– India enjoyed about 7% of all the work outsourced from multiple countries– And Yes, we did not focus enough on 93% that can be outsourced, why,

simple, it was easy to body shop than to take ownership of deliverables • Head count of chair warmers

– Organizations grew large with “School bus” approach (One driver and may kids enjoying the ride)

– With close to zero value add and busy under cutting of revenue of other organizations, we are at the bottom of the value chain today

• Demand vs. Supply – Our education system, has fallen short of generating “job-ready”

professionals. We believe still in “Teaching” vs. “Helping them learn”– Current demand of all-in-one warrior breed simply does not exist in the

quantum to satisfy the demand

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Future of IT organizations• IT Services organizations

– Sunset as many pandits predicted (pun intended)– Unable to reinvent themselves as they have grown too large for their own good

• IT Product management organizations – Most of them maintaining “sunset” versions will possibly remain unaffected for

now • BPO

– Clearly set to disappear from current form into more value add like KPO • KPO / LPO / HRO

– These low-cost non-core function industries are pegged to be doing well for next 5 years at least

• Captive Centers – Depends on whims and fancies of the parent organization – Will disappear into China / Philippines / Mexico kind of countries, if they are not

involved in core business function

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The NEW future…• IT no longer to be the most preferred industry for job seekers… hmm… • Small mom-and-pop setups

– Original one-man show with small army is expected to emerge as new epicenter – Man who produces results is in touch with business, directly – Consulting (vs. current insulting), Management Advisory, Program Management

will be new focus areas • Small and medium organization

– 50-100 professionals working with singular purpose is expected to emerge as new definition of large organizations

– Cost + Profit model is expected to emerge • Specialized offerings

– These existed in small disorganized fashion, now expected to take centre stage • KPO… with clear value add

– No knowledge, no pay… is expected to be new mantra of survival

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Possible Eco-System

• Educational Institutions – Industry participating in education to create “employable

population” • Startups

– True learning ground for people starting their career– Heaven for individual contributors with experience

• Medium – Large IT setups – Feed from startup – Small intake from Campus

• Specialized sectors – To feed from startups and medium firms – Small intake from campus for skunk projects

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Conclusion…

• IT Low-value-add Services Industry will shrink • KPO will emerge to be new BPO • Specialized focus services to take centre stage • Product development to be new in-thing…

THANK YOU….

Contact us for more information… USA +1 973 210 3030 India +91 80 4147 9204 eMail CxOHire@RedApple-Inc.com