Major chunk of revenues for the Indian IT companies are coming from US projects.Due to rupee appreciation and US slowdown our IT Companies have started feeling the heat. Hence they have started focussing on Japan, European and other untapped markets aggressively to sustain the revenues and profits.

Our companies should focus on the following areas apart from Servicing business to maintain their competitive edge from other low cost countries like china etc.

Consulting - Consulting is one of the most lucrative business for the IT companies. But its very tough to penetrate into this space and make profits.IT Consulting is a field that focuses on advising businesses on how best to use information technology to meet their business objectives. In addition to providing advice, IT consultancies often implement, deploy, and administer IT systems.Companies like Accenture, IBM are doing very well in the IT Consulting and implementation.Indian IT companies have started focussing on consulting business but its yet to bring profits like IT Services.
Hence our companies should get the customer confidence through value addition to the customer business through consulting.Only then we can compete with the giants like Accenture, IBM in the consulting business.
I hope our companies can do better in consulting as advising is part of our culture.

Focussing on Indian Market - Due to the booming of retail, telecommunication, and realty business in india indian IT companies should focus on local indian market to generate huge revenues. In the last couple of years IBM has bagged lot of multi million dollar projects from the indian companies.It is a great opportunity for the indian companies to cater the local market to compensate the revenue loss from US slowdown.

Product Innovation - This is one of the major area where Indian companies are lagging behind our global ounterparts.Now its time for our companies to give more serious thought on Product innovation.Our companies have developed various financial products which is used by many banks across the world. But we should strive to develop world class products like Windows, Oracle, SAP etc.This does'nt mean that we need to develope another operating system, Database or Enterprise products as it would be futile to compete with the existing products.

But we can concentarate on developing innovative products for the untapped areas which will be used by the common man across the world.This will not only bring more profits to the companies but also improve india's image from servicing nation to the innovative nation.

I hope India Inc's next step would be to focus on the above areas to stay on top in the coming years.

Thanks

Kathir