For the past few years India's information technology sector, more than any other industry or economic facet has been a key driver of the country's economic growth. And no one can ignore the contribution of Infosys Technologies.
But, suddenly, the scenario changed as the financial tsunami hit the global markets. Exports dwindled, staff was laid off, and profit margins got squeezed.
How badly has global recession hit the Indian IT sector? How soon will there be a revival? How attractive is the sector for job seekers?
In an hour-long chat on rediff.com on Monday, S D Shibulal, co-founder and chief operating officer of Infosys Technologies, replied to many such readers' queries.
Shibulal, who holds a master's degree in Physics from the University of Kerala and an MS in Computer Science from Boston University, has his attention focused on increasing competitiveness, improving customer experience and employee engagement, and increasing the depth of services.
Here is the transcript:
denish asked, when will this reccesion will get over?
S.D. Shibulal answers, at 2009-06-15 13:35:44The recession is linked to multiple factors, like global economic crisis, consumer confidence, liquidity etc. My interactions with industry leaders, gives me the impression that it will be a protracted recovery. While there are positive signs around, I expect serious recovery to start at the middle of next year.
vdmahajan asked, well i have completed my Engg from part time college & MBA(IT & Systems) correspondence.. will it affect my IT career to go in MNC
S.D. Shibulal answers, IT industry is a very global, competitive and capability driven industry and one must invest in oneself through learning and experience. Basic degrees full time or part time and/ or certifications will only get you a foot hold. Building a career is an individual's responsibility and will require dedication to work and continuous learning.
Harshal asked, Hi Sir, I want to know how the market crises will affect the SAP projects in near future.
S.D. Shibulal answers, Demand for enterprise products can be divided into two broad categories first one is lights on work, basically maintaining existing systems - they will continue. Second set is transformational in nature, while the business transformation projects which are in flight will continue, sometimes at a slower pace due to investments already made there will be delay in new such project starts.
AmitB asked, What is Infy vision of Indian IT in coming years. Is Infy concentrate only on services or going to concentrate in Products as well.
S.D. Shibulal answers, The Indian IT industry has always been innovative and responsive to client demands. They have continuously expanded their services and products. The industry needs to continue to be innovative and stay relevant to clients and their needs. This means new ways of engaging with clients, new services, solutions and products where ever applicable.
Sivaram asked, Hi Sir, What strategic Direction Infy will be taking going forward to hedge the risk factor of declining services businesses, In other words any ideas in product creation and innovation in the industry?
S.D. Shibulal answers, Infosys has continuously focused on increasing the addressable market by expanding the client base, vertical footprint, geographical footprint and service lines. Today we are a true end to end service provider; we have added new services like SaaS and learning to our portfolio recently. We are expanding into new markets like China and India. We are focused on new verticals like life sciences and energy and utilities.
gopinath asked, Dear Sir, There are lakhs of students studying Information Technology from different reputed colleges. Is there any reasons to worry considering the present secenario.
S.D. Shibulal answers, Economic cycles are a fact of life and every individual is impacted by the same. One should take a longer view of one's career and continue to focus on studies and acquiring knowledge. The need for technology to create productivity and comfort will continue to remain high- that should create job opportunities for IT students in the longer term.
AmitB asked, Dear Sir, When the market was bad, why Infy hired some 20,000 freshers from college and increase their bench strength. Just like as Wipro we could have delayed their inclusion in Infy. Thanks.
S.D. Shibulal answers, Infosys has always believed in meeting the commitments it has made to all its stakeholders. It is important to honor the recruitment commitments we have made irrespective of the times.
Sandip asked, What is Infy doing to make a bigger footprint in European sector ? Also its high time that we target the Chinese market , TCS is aggresively growing on both European and chinese markets.
S.D. Shibulal answers, Today 26% of our business comes from Europe which was substantially higher that what it was 6 years back. We will continue our investment in Europe, especially in countries like Germany and France. This will include local language capabilities, local business knowledge and regional presence. China is an important market for us and through our subsidiary we continue to address the local market. We have a very active sales force and development centre in China.
doss asked, How is the future for Bilingual IT engineers in future? For example, Japanese-EnglishHow is the future for Bilingual IT engineers in future? For example, Japanese-EnglishHow is the future for Bilingual IT engineers in future? For example, Japanese-English
S.D. Shibulal answers, Not only the IT industry, every other industry serving non English speaking global markets requires multi language skills.
yogesh116 asked, Dear Sir, by 2015 which will be focus technologies for IT systems - your view
S.D. Shibulal answers, In the near term I believe virtualization, mobility and convergence are the 3 important trends to keep track of.
JK asked, Hi sir , What should an employee do when he is on bench in these situation.. ? whether he should start searching a new job or....?
S.D. Shibulal answers, Most global organizations provide employees with learning opportunities even when they are on bench. Catching up on technology trends, participating in internal projects, investing in capability building are some of the productive options.
sumne asked, Hello sir, which industry verticals as a market do you see the highest growth in the future, vis-a-vis the IT industry ?
S.D. Shibulal answers, There are a number of industries which will continue to grow. You are seeing growth in the retail industry in India today. This should lead to organized manufacturing sectors and further growth in manufacturing itself. Other industries that come to my mind are healthcare, infrastructure, telecom and education.
kch asked, Why does infy not concentrate on the domestic IT market?
S.D. Shibulal answers, Infosys has always been present in the Indian market through Finacle our banking product. Starting FY '08 we have a dedicated Business Unit focused on the domestic service market and we are seeing good traction.
Kanagavel asked, Where do you feel lies the future of IT in Business today, Is it in IT Security, IT Governance or do you feel IT will still remain a support function only?
S.D. Shibulal answers, Today IT plays a critical part on most organizations to increase productivity, increase customer satisfaction, reduce risk and increase employee engagement. The primary challenge for the IT organization is to move from the productivity paradigm to create business value.
sanjay asked, Hello Sir, What is the oportunities available to a PHD holder in IT
S.D. Shibulal answers, The industry will continue to focus on innovation, technology, process and business. This will require highly qualified people in various disciplines.
Mitesh asked, Dear Sir, At the brink of such financial crisis, there are tremendous challenge for IT services industry which flourished in last 15 years on the basis of skills, delivery model, professional approach and cost competitiveness. My question is - 1) What are challenges do you see for next two year period on existing business model and how does industry and Infosys is adapting such tectonic shifts? 2) Do you think strong Indian domestic market will emerge for IT services requirement?
S.D. Shibulal answers, Changes in business cycle always gives opportunities to strengthen client relationships and provide innovative services. The industry should continue to innovate with new solutions, services and products to be relevant to the market. We are already seeing accelerated technology adoption in the Indian domestic space.
ragu asked, hello sir,what motivates you even in these hard time
S.D. Shibulal answers, In a career spanning over 30 years I was fortunate to see multiple upturns and downturns. Each one of them has given me opportunities to grow and learn. I see the current set of challenges as another opportunity.
S.D. Shibulal says, It has been a pleasure to chat with you. Thank you
