I sat down to talk with Sachin Tikekar, Chief of People Operations at KPIT Cummins, yesterday. I wanted to ask him about his observations on the IT services market in India at present and whether there are any fundamental changes that will make 2010 different.
He thought that the single most important change is how customers are now expecting greater risk sharing from their suppliers. Clients want suppliers to be a genuine part of the solution, rather than just selling time and expertise. He said: “The whole business model of IT services is changing. Charging by time and materials is finished. We all need to really start offering solutions, not necessarily products, but the market wants solutions.”
Then he added an additional note that reinforces what some others have mentioned about India as a source of domestic growth for IT services: “It becomes even more important if you look at how the market itself has shifted. Growth is coming from new places such as Brazil, India, and China. These countries are not particularly rich even if they are growing fast, but they are where business is coming from in future.”
The BRICs theory is back once again – though with a missing R. And with China poised to overtake Japan (has it already happened?) as the second-richest country on earth when measured by GDP, I can see exactly what Sachin is saying.