Will India's dominance in the IT sector continue?

Will India's dominance in the IT sector continue? (by Nishant Kumar)

Will India's dominance in the IT sector continue?

India is a well known IT destination in the world with largest number of IT professionals living here. Our increased operational efficiencies have been helping us dominate this sector. India is world's most cost-competitive sourcing destination and many of India's top cities are still cheaper than other low-cost destinations.

The $150 billion industry has been experiencing export revenue growth of 7-8% currently with domestic market projected to grow at 10-11%. The industry is expected to gain momentum with the rising demand of financial services and digital businesses.

Despite strong backdrops, the questions have always been raised if the era of India's dominance in the IT sector will continue.

There are innumerable challenges in the path towards higher growth. Indian IT industry has faced many formidable challenges in the past as well, be it transition to Y2K, global financial crisis and it has always had the last laugh.

There are many issues and barriers ahead, let us discuss uncertainties and opportunities that are lying ahead in future for IT sector.


There is a drastic shift happening in the technology arena due to automation and AI that has created uncertainties in the mind of many who think that such development would eat many jobs. Automation is a reason for scarcity of jobs in certain areas, but emergence of new technologies such as cloud computing, cyber security, big data etc. have also brought many opportunities. So, it is just a temporary turbulence and to cater to the changing technology needs, companies have already started re-skilling their employees.

H-1B visa

IT industry is already facing pressure on margins and visa woes are adding further wariness. US administration is thinking to raise salaries paid to H1-B visa holders. Such a move will aggravate costs and dent margins in huge way. As of now, there is no change in status quo but it will remain so in future is a big question.

Though there will be continuation of challenges, Indian IT will continue to grow at a robust rate owing to increased local demand for IT product. India’s digital businesses have been flourishing and employing many directly and indirectly.

Surge of Philippines, China and Ireland

Global companies are also tapping other countries like the Philippines, China and Ireland for low-cost labour and talent. Many think that these new entrants can eat major chunk of our businesses.

These countries are picking up in certain areas like China has its major investment in hardware and gaming area. Philippines are majorly in BPO. So our forte in software services will still be unaffected.

Rising cost of labour

With increased efficiency, the labour cost has gone up but we are still lower than many low cost countries. And we shouldn’t forget that labour costs have been rising across many rival nations too. This factor is no more an issue for IT industry.

Lack of indigenous product

It’s time now to deliver an Indian IT product in world market. A lot of people think that India is vastly a service economy and incapable in the area of product development. But nobody can deny the fact that our professionals have been working heavily on many coveted products in various companies like Microsoft, Apple, Google etc.

Time is changing and we are shifting our focus from service to product. Many research works are now based in India. Start-ups are working dayin and dayout on numerous ideas. The future will see many milestones in the area of product development and unveil many world class products.

Despite challenges, Indian IT industry will overpower all odds and emerge winner.

-Nishant Kumar
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  • RE: Will India's dominance in the IT sector continue? -India's dominance in the IT sector (06/13/18)
  • Indian IT sector is well matured to soak market turbulence. The industry is big enough to transcend hiccups now. Our engineers are well equipped to see off transition time smoothly. New technologies won't pose any challenge to our experienced human resources owning to strong fundamentals and passion to learn. While there will be a slight slump in the revenue because of uncertainty but the storm won't last longer. Automation will knock down few jobs but open up many more. Redundant work will be taken over by machine, consequently lesser humans would be required. The expense would be drastically down while the productivity and revenue will shoot up. Investment capacity of companies will increase which will fetch many opportunities. Progress story of Indian IT sector is just the tip of the iceberg that world has witnessed, many feathers are yet to be added.
  • RE: Will India's dominance in the IT sector continue? -IT sector - Group Discussion (05/01/18)
  • India's dominance in IT sector won't be decimated, given its effectiveness and vastness. It has boiled down to a very matured position that can handle any storm of latest technologies. We are our fundamental right and can meet any requirement of new generation. Our human resources are well equipped and experienced, can bend down to take challenge of latest technologies. From the current position, our IT sector will bound to become fat, revenue will shoot up. We have a good network of colleges and training institutes, there won't be any dearth of work force. Our domestic market has been growing through leaps and bounds which further add to new glory. We are getting digitally savvy with each year, requirement for digital software will soar high, will help unleashing new source of revenue. Industries are working on AI technologies, which will bring more laurel. In short, Indian IT has seen dawn light only, day light is yet to be seen.
  • RE: Will India's dominance in the IT sector continue? -IT sector - group Discussion (04/17/18)
  • IT sector is undergoing a transition phase globally with digital technologies are looming higher than traditional project. This shift of gear to attain new trend of market will settle down in course of time. Indian IT conglomerates are also facing the same heat of changing trend. But the storm will settle down sooner than later and adopt the new demands seamlessly. We have huge manpower resource who can withstand any twist and turn, learning and accommodating new technologies wont be a big deal. Re skill is the key to sustain and both employers and employees are well aware of the situation and we are already on the cusp of holding our grip on many coveted project.
  • RE: Will India's dominance in the IT sector continue? -Group Discussion (04/12/18)
  • Growing Indian IT sector is important for Indian economy. IT industry has not only put India in global map, it is also the reason for middle class beaming with pride and leading a better life financially. There has been change in the fortune for IT industry, for a major shift is happening with machine is taking human place. Traditional projects are no more a hot cake and digital technologies are gain momentum. We can't sleep over our past glory and work to re skill to be fit into latest revolution. AI is a big threat for those who are living in old world technology, a very challenge is ahead of us to make our graduates hireable on advanced technologies.