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Fate and Fortune in the IT Industry – based on study by NASCOM

Dr Sunil Job

nascomThe effervescence of the IT industry at the advent of the twenty first century has created waves among the corporate, professionals, industrialist and social activists. The excitement over the opportunities in IT has filtered to almost all corners of the world and it’s been described as an exponential tech revolution. Indeed, it was not a passing fancy; the impact of open source on the industrial frame work was deeper and lasting. Counter to these developments, on account of global economic slowdown the world trade and commerce has witnessed some common enigmas. The focus here is to highlight on some of the reviews of NASCOM on the trends of the IT industry and to draw insight on to what level the global industries ought to scale?

Mainstream industrialist has never been at ease with the issues of economic slowdowns. Even with the hardcore players in the industry these issues have a major impact on their business and strategies. They believe that when the markets get unevenly poised the factors of production, distribution and service have to be restructured to get a fair value for their contribution and effort. Income difference that arises due to surplus input incurred on hiring highly experienced professionals, extra training and manpower requirement has been optimized. Elaborate mathematical models were built around the working in the industry and market. Analytics of NASCOM on the industry trends is recognized as sensational to the IT aspirant to streamline the career requirements.

The few observations as studied by NASCOM reveal that a major development that had happened in the industry is an attempt to transform students into industry suitable work force.  A sudden dip in the revenue margin has resulted in coherent models of cost cutting. The following are some of the MNC’s which has given the offer letters after conducting the campus drive, but unable to take them into the services. Here gives the number of actual recruitment against offer letters in 2013.

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The standard chartered research by the Source Company on the various phases of the operation of the clients and company reveals that the margin has come down from 53% to 15%.

Since IT companies are getting low margins in the current scenario, they have implemented some measures in order to sustain. The strategic change towards sustainability could be viewed as

    Cost cutting on salaries and eliminating training cost, for instance IBM reduced the training cost from 200 million to 80 million.
    Recruit fresher’s in place for 2 years or more experienced professionals and expecting the same kind of experience from the fresher’s as they are getting from experienced persons
    Avoid investment in training of fresher’s and promotion of long term training at the college level and streamlining the scholars to a competent professional before recruitment.

NASCOM in its report has offered deep insight into the issues pertaining tothe industry, especiallyy how they are inextricably connected with the paradigm shift in the industrial culture and practices. The priority analysis of the various objectives related to outsourcing from the leading IT industries could be read as

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Further the result of the survey conducted by the NAASCOM to figure out the scope for the business in different verticals in IT by the year 2020 reveals that

    The scope of the software market is confined to $398 billion USD among $2500 billion USD. This implies that industry cannot expect good number of projects in software development. Since they don’t get the projects the requirement for the software programmers is coming down.
    The business scope for other verticals is better than software development. This implies that there is a good demand for those who can fit for the other verticals like Cloud Computing, IMS, Information Security, Datacenter Engineering, 4G Technology, Data Analytics, Mobility etc.

The most significant observation on the foresaid analytics reveals that apart from traditional academic inputs, it is mandatory to have a pre-service training programme on the contemporary technology relevant to the industry and more over the verticals in IT other than software like  Cloud Computing, IMS, Information Security, Datacenter Engineering, 4G Technology, Data Analytics, Mobility will rule the industrial space with ample opportunities and a huge scarcity of professionally trained manpower in these verticals is ought to happen by 2020.