At The Cross­roads

Dataquest - - EDIT -

As we look at the DQ Top 20 list­ings this time, the IT in­dus­try is clearly go­ing through mid-ca­reer blues. In a year in which lay­offs be­came a norm in an in­dus­try where at one point in time re­ten­tion was a big chal­lenge. The Top 5 IT com­pa­nies did not see much growth trac­tion in FY 17. Look­ing at the seg­ments, things are not rosy ei­ther. The PC mar­ket strug­gled to keep up with vol­umes and value. The prin­ter mar­ket in India reg­is­tered a neg­a­tive growth of 5%. The server mar­ket too was de­pressed and growth stood at sub 5% range. On the en­ter­prise stor­age front, yet again, vendors man­aged to sus­tain their mar­ket share as rev­enue growth re­mained in sin­gle dig­its. One good thing - the se­cu­rity mar­ket is poised for growth for ob­vi­ous rea­sons.

If we take a due dili­gence of FY 17, over­all it was a year of tran­si­tion for many com­pa­nies. The IT ser­vices com­pa­nies in­dulged in cost ra­tio­nal­iza­tion and com­pe­tency up­ping ex­er­cises, in the bar­gain they are forced to take some hard de­ci­sions. Some of the com­pa­nies re­ceived a lot of ire on the way they han­dled lay­offs. Some com­pa­nies an­nounced vol­un­tary sep­a­ra­tion schemes for lat­eral em­ploy­ees and made the process lit­tle bit eas­ier for the em­ploy­ees. An­other ma­jor event of the year was the rais­ing con­cerns on how AI and Au­to­ma­tion will im­pact the tech work­force. FY 17 also saw dig­i­tal trans­for­ma­tion tak­ing the spot­light. Most of the com­pa­nies re-aligned their com­pe­ten­cies to the new nor­mal dig­i­tal and emerg­ing tech man­dates.

More than the prob­lems faced by the in­dus­try, the es­ca­la­tion of the thought that In­dian IT in­dus­try has hit its nadir cre­ated a lot of neg­a­tive per­cep­tion and over drama­ti­za­tion of the re­al­i­ties. In all, FY 18 will see the be­gin­ning of a more dar­ing and more equipped In­dian IT in­dus­try, all set to take on the dis­rup­tive chal­lenges.

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