The IT service industry is said to be the forte of the top business conglomerates in the country. India has been the largest market for IT outsourcing projects for the US, UK, and many more countries. The Indian IT industry lures business worth $150 billion and contributes around 10% of the total GDP. But in the changing times, the Indian IT industry is facing hard times. Recently the Indian IT companies sacked off thousands of employees. It seems like an ordinary periodic lay off, but this time, the roots of the problem are engraved deeper than speculated.
Indian IT industry saw its graphs rising steadily since past 20 years. India was the largest supplier of engineers for the tech giants across the world. Many small and big companies chose India as their prime place for out sourcing the IT job work, and the Indian IT service providers did the job perfectly and earned high profits. The scenario was lucrative for the Indian tech giants. But as the situations change, a company shall also adapt to the market by changing its strategies. This phenomenon can’t be noticed in the Indian IT companies. They had their whole focus on providing services across the world and making money, while parallel, the Artificial Intelligence was making its way to disrupt the tech industry.
The New Big: A.I.
The AI, machine learning, deep learning, robotics as well as the sensors are developing at an alarming rate. No new domains had made such a prominent place in the industry in such a short span of time. With the growth of the internet and connected devices, the Internet of things will bring in the third revolution in the field of communication. And almost none the major companies who are leading this revolution are from India.
Take a look at Amazon, which started as an online book selling platform. It is now one of the largest web hosting service providers. The AWS is bringing in tough competition for Google and other companies. Similarly, Uber which has disrupted the taxi industry is constantly making efforts for successful driverless cars. Tesla is disrupting the automobile industry with electric vehicles. All these things have one thing in common, and that is the artificial intelligence and machine learning. Apple and Samsung, the two lead players in the tech world, have constantly been investing or acquiring small companies who have their prime focus on products which have Artificial intelligence at its core.
Such disruptions are occurring everywhere, and the established players have been suffering blows due to the highly advanced and efficient algorithm based products. The taxi cab industry is now almost captured by Uber, Lyft, Didi, Ola. Similarly, Netflix kicked off Blockbuster and cable TV from the movie and television industry. The biggest problems with the pre-established industries are that they are not able to accept the threats which the new players bring in for them. And same can be speculated for the Indian information technology sector. Major projects which used to be in the bag of Indian IT industry are slipping off, and the main reason is AI.
Our companies instead of developing great products for themselves always kept the focus on profits and went on building products for the global businesses and kept on digging their graves. Now the Indian companies are in a state of panic as they can see how they wasted the prime years in building products for other businesses. But some of them still don’t tend to take this upcoming disaster seriously. The big tech heads such as TCS, Infy, Wipro, Tech Mahindra who used to take up large consignments, are now ready to take up the consignments which used to be in the bag of tier-2 companies such as Mphasis and Zensar.
Thus the situation may become same as the boom and the fall faced by the Japanese and Korean companies such as Kodak and Mitsubishi in the past years. It is in the hands of the top executives of these IT companies to change the course of action in these changing times and even big ups and downs in the near future.