InvestorQ : The big fad for Indian IT companies appears to be about going digital. What is meant by this digital shift for IT INFY, TCS etc?
rhea Babu made post

The big fad for Indian IT companies appears to be about going digital. What is meant by this digital shift for IT INFY, TCS etc?

sara Kunju answered.
2 years ago

For over 3 decades the Indian IT industry focused largely on Banking, Financial Services and Insurance (BFSI). To that was added the verticals of telecom and hydrocarbons along the way. But the essential nature of the business continued to be one of outsourcing. Indian engineers and project managers had built up sufficient skills and knowhow to break down large projects into codes, manage scale, deliver results on time, operate across geographies and achieve all these at much lower costs. This was the model that created IT giants like TCS, Infosys, Wipro and HCL Tech apart from names like Cognizant.

Over the past few years, however, things have begun to silently change. The model of delivering scale at lower cost is not exactly working o perfection for a variety of reasons. Global IT spending has been on the wane, the business of IT outsourcing is becoming largely commoditized and of late the US visa norms have been tweaked to favour domestic US employees over foreign employees. That has brought the focus for IT companies back to digital. Digital is nothing new and Indian IT companies are already into digital solutions delivery, although is still a small part of their overall package. So what exactly is digital and why it is so critical to Indian IT industry?

Digital shift is all about moving from BFSI to SMAC

Digital can broadly be defined as the combination of four components viz. Social Media, Mobility, Analytics and Cloud (SMAC). These are the high growth segments where most of the global IT investments are happening. It is the combination of these four segments that can actually propel the shift to SMAC. Here is it can work! Social Media intelligence will be used to get a holistic 360 degree view of the customer and their needs. This enables more targeted customer communication. Mobility is about delivering the ability to transact to the customer at anytime and anywhere in the most convenient manner. Analytics is all about the unique intelligence and insights hidden inside mountains of data. An organization generates useful data at various touch-points. Therefore Analytics is all about being able to smartly aggregate data, making sense out of this data, giving a structure to the output and gleaning useful insights out of the same. Lastly, Cloud is all about creating the infrastructure and platform wherein clients can operate on a variable cost basis rather than fixed cost basis. Cloud allows client to substantially scale up their business without sinking money into fixed costs and is a pre-requisite for the success of social media, mobility and analytics.