Indian IT outsourcing segment is one of the biggest in the world with a 32 percent global market share. The technology industry employs 4.5 million Indians and contributes almost 6 percent to India’s total gross domestic product (GDP).
The country is known as the 'land of engineers' thanks to companies like Infosys and Tata Consultancy Services (TCS) going global. Infosys was the first Indian company to be listed on NASDAQ 20 years ago, the same year that CNBC-TV18 was launched.
As CNBC-TV18 celebrates its 20th birthday this year, our special series ‘Corporate Thrones’ focuses on the Indian technology sector over the last 20 years. Some of the big questions we are asking are despite starting around the same time as Infosys, why are many midcap IT companies are less than half its size. How will midcap companies play catch-up? What is their blue ocean strategy?
In an interview with CNBC-TV18, MD & CEO of Tech Mahindra CP Gurnani, R Srikrishna, CEO of Hexaware Technologies and Sanjay Jalona, MD & CEO of L&T Infotech, discussed the road ahead for midcap IT companies.
Speaking about the way forward for midcap IT, Srikrishna said, “By using the traditional levers of growth, which is expanding service lines, getting to new markets which means new verticals or geographies, we think we can organically grow 30-40 percent higher than the industry. We have been doing that for 5 years now and we think that we can sustain that forever. We think we can add to that maybe 2-3 percent on acquisitions.”
According to Jalona, the cost of onsite resources has gone up. "It is a simple supply and demand issue. If you do not have talent coming on to the marketplace if there are not enough students in the world markets where we operate in, and you cannot bring them up at a competitive price, then the prices are going to go up,” he said.