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The future of the Indian IT professional February 15, 2007

Posted by topedgemonk in Information Technology.
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The Indian IT industry is a major contributor to the nation’s GDP. It brings dizzying amounts of money to the economy. The era of body shopping is long gone. Customers have become more demanding, more mature and seem to know the service provider’s cost structure better than the project manager at offshore himself. Outsourcing has changed from being a source of competitive advantage to an accepted business strategy which the investors fully expect the businesses to adopt. The number of large deals are going down drastically, margins are shrinking- the Indian IT professional is demanding higher and higher wages.

The only way to keep up the margins is to move up the value chain and provide comprehensive business transformation solutions. TCS has adopted a new billing model where they charge the customer a portion of the profit made due to implementing their solution. Companies like Accenture, IBM etc are trying to move down the value chain and add software and integrate IT into their consulting or hardware businesses. The Indian companies are trying to move up the value chain to increase margins. Only a few companies will be preferred outsourcers after a few years. As we move up the value chain, the IT professionals also will need to hone their skills. The era when someone used to do a proxy telephonic interview with the client and send the associate on site is almost setting in the horizon. The Indian service providers will seek to outsource their work to other lower cost countries like China, Egypt, Vietnam, Hungary , Thailand etc. The last employees standing would be ones who are gurus in technology as well as in understanding the business problem.