Global sourcing industry likely to triple in 2020
HYDERABAD: Infosys Chairman and chief mentor N. R. Narayana Murthy on Wednesday stressed the need for the Indian IT professionals to change their reactive software development mindset to pro-active ‘problem defining and problem solving mindset’ to take advantage of the growth expected in the coming years.
He said the global sourcing industry, which is pegged at $500 billion at present, was expected to triple by 2020, of which India’s share was likely to be anywhere between $175 billion and $300 billion. Unlike the previous decade where 75 per cent of the revenues to India came from Fortune 500 companies, small and medium business were expected to contribute at least 50 per cent share — between $90 billion and $150 billion — in the coming years. While the U.S. and the U.K. contributed a major share of 80 per cent of revenues, 50 per cent of the revenues (anywhere between $90 billion and $150 billion) was expected to come from BRIC (Brazil, Russia, India and China) countries.
The contribution from the banking, financial services, insurance, telecom and manufacturing segments, which now stood at 75 per cent, would come down as public sector companies, healthcare, media, utilities and other sectors were set to take 50 per cent share, he said. Addressing the participants at the World Editors Forum organised as part of the 62nd World Newspaper Congress here on Wednesday, Mr. Narayana Murthy said the Indian software industry would move from managing costs to managing innovation, managing risk and compliance systems for customers. “The industry will move from off-shore onsite mindset to one of providing global value chain,” he said.
Explaining how IT had wonderful solutions to the problems faced in the country, he said given the fact that 50 per cent of the people did not have access to proper healthcare, IT could bring about a solution to address the issue at half the cost. The sector could be effective in reaching out banking services through mobile wireless solutions while systems like Unique ID would help in ensuring the reach of schemes to beneficiaries.
Responding to queries, he said that in spite of the intellectual projections, there were many risks like the ongoing crisis in West Asia, Afghanistan and other countries that could see that the economic growth was not as anticipated resulting in less investments in the IT sector. He favoured that India, Pakistan, China and Bangladesh lived in peace failing which “I don’t think the desired accelerated growth will be achieved.”