Indian IT looks homeward as digital transformation kicks in

BENGALURU: Exports-focused Indian IT services firms have stepped up focus on the typically smaller footprint domestic market, driven by Indian companies transforming their business using digital technology and as the government moves to use technology to improve governance.In the latest such instance, Tech Mahindra won a Rs 300 crore deal from the Indian Navy last week to build an access control system across all naval bases and ships.In the past couple of years, the IT services sector has seen more levels of automation and a resultant price rationalisation. This, analysts said, has created a level playing field in the Indian market and allowed Indian IT services providers to offer competitive prices in the domestic market.As companies look at more automation and start using IT for business growth, the space for Indian IT firms in the local market is widening. At the same time, more Indian companies and government-run organisations are spending on digital technology services to transform their offering to the mobile-first users. “Infosys and HCL Tech are the most aggressive in refocusing on the Indian market,” said Sanchit Vir Gogia, CEO, Greyhound Research.While Infosys has set an internal target to achieve nearly half-a-billion dollars from the Indian market in three years, HCL Tech is aggressively eyeing domestic deals. TCS currently garners nearly $1.2 billion in India revenue. “Every company is setting a target for the India market... The demand is slowing down in their key markets. They are looking for more revenues for growth and India is one of the emerging markets,” said Pareekh Jain, founder, Pareekh Jain Consulting.“With Digital India initiatives, both state-run organisations and companies are spending more on technology and investing in digital,” he said.Mid-tier IT company Mindtree has put in place a team to create a customer pipeline in India. Wipro has Sanjeev Singh to head its India state-run business, while Anand Padmanabhan heads the private enterprises business for the country.“Our private-run enterprises business in India has an impressive list of customers (both Indian and MNCs), with whom we enjoy longstanding relationships and partnerships,” a Wipro spokesperson told ET in an email. “The revenues from the India private-run enterprises business are part of the company’s IT services revenues. We do not detail these figures separately,” the spokesperson said.Tech Mahindra, which earns 5% of its $4.97-billion revenue from India, expects to double the local revenue in the next few years on the back of growing IT spend by customers. “IT spending in India is only increasing given the importance of digital in the business and at the same time automation is helping customers drive significantly more value, for the same money,” said Puneet Gupta, head - India sales, Tech Mahindra.69551451 Interestingly, all the MNCs were focusing on the domestic market even while Indian firms were never aggressive, Jain of Pareekh Jain Consulting said.

from Economic Times http://bit.ly/2QxoBfj