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NASSCOM SPL: Innovate to survive in hard times

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CIOL Bureau
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MUMBAI, INDIA:  Indian IT companies will emerge much stronger after current uncertain times are over, provided companies accelerate their learnings, sharpen their value offerings, optimize processes and improve their customer engagement manifold.

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This was a uniform opinion formed at the end of panel discussion titled, “Hard times: Slow economy, Sales Slump - Will it get worse? Will you survive?” which concluded here today at NASSCOM Leadership Forum 2009.

The discussion was attended by CEO, HCL technologies, Vineet Nayar, co-chairman, Infosys Technologies, Nandan Nilekani, CEO and MD TCS, S. Ramadorai and Denny McGuire, chairman Emeritus, TPI.

Kicking off the discussion, Vineet Nayar painted the present climate as gloomy and urged IT industry to work more closely with customers and offer them tangible benefits so they see more value in partnering with them.

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“Majority of customers are in trouble and IT companies need to work more closely with customers to offer them more value and provide tangible benefits,” he said.

And Ramadorai urged IT companies to accelerate the speed of their learnings to match up with needs needed to operate in agile and fast changing environment

“The challenge is not only about learning but how fast are you absorbing and institutionalizing those learnings,” said Ramadorai.

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Nandan Nilekani called more importance being given to relationship management to ward off immediate threats.

On the question whether layoffs in IT industry will help companies tackle recession, all the CEOs were unanimous that in Indian context, layoffs was not a prudent option as it harmed then fabric of the company in long term

“For short term benefit, industry cannot jeopardize long term employee relationship with company,” the panelists felt.

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However Ramadorai, said companies need to continually engage themselves in performance management so as to weed out inefficiencies creeping into system from time to time.

“You cannot have mediocre people dragging the projects which could cause company harm in long run. You need to bring them at same levels or effectively manage them in different projects,” said Ramadorai.

On a question, whether present times provided ideal opportunity of Indian IT companies to indulge in M&A activity, Vineet Nayar said many companies were available for lesser values and it was, in fact, the best time for Indian companies to venture into Mergers and Acquisitions.

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However, Ramadarai disagreed and said TCS will chart the path of growing organically rather than looking at acquisitions in the present environment.

Responding to question on whether uncomfortable noises coming from US is a cause of serious concern for Indian IT industries, Vineet Nayar said for protectionary lobby in the US, it will be difficult for them to push their case as the advantages of off shoring are too many for big American companies to ignore.

Responding to statement made by Union Minister for Commerce and Industries, Kamal Nath to look inwards, Nandan Nilekani said, though Indian domestic industry was big, it could not be a substitute for global growth.

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Kamal Nath had suggested Indian IT industry to look inwards and start seriously tapping the opportunities presented by the domestic Indian IT market.

Nilekani also urged the gathering not to short sell the contribution that Indian IT industry has done for domestic Indian industry.

“The work that Indian IT industry has done for various industries is commendable be it for stock exchange, Indian railways and e-governance,” he added.

For more NASSCOM Special stories click here

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