The Indian Software Industry

Managing non-linear growthMoving up the value chain

C V Jayanthi– Independent Consultant

Pooja Sharma– Sr. Consultant, Leading IT Company

- A Practitioner's Perspective -

Excerpt of Paper Presented

at IIM, Bangalore

• Points of Inflexion

• Non-linearity via industrial revolution

• Non-linearity in branch next door

• Varied views of the elephant

• Moving Up the value chain

• Back to first principles

2

CONTENTS

Point of Inflexion

3

Growth drivers Diminishing marginal utility

Cost Arbitrage

Abundant Resources

Non-linearity via Industrial Revolution!

4

Structural changes :

value – added products

Specialization in India strengths : Good domestic

markets

Large composite mills : end-to-end approach : spinning, weaving, designing

- Outmoded machines-Labour issues :

numbers, productivity training

- creation of specialised units-participative labour engagement models

-outsourcing non-core work

Non –linearity in the branch next door?

Branch

Circle / Regional/

Zonal

Head Office Functional depts

Functional depts + admin

sales, operation, compliance

sales, operations, compliance

Functional depts + admin

sales, operations, compliance

5

Customer, Revenue,

Compliance -Bank

Servicing –Branch, e-banking channels

Sales –Branch + agency

Operations – Back-office

Product –Technology +

Business

Compliance –Risk

management + Tech

Collections – central

recovery + agency

Varied views of the elephant…..

6

Platform based offerings – Cloud,

SAAS, PAAS…

New business models –pay as u go Cross-industry process

adaptation - lean

Automation in low-value jobs - RIM

Moving up the value chain - Technology for technology industry…..

7Futuristic technologies like robots, artificial intelligence

Moving up the value chain - Pricing Models

Time & Material, resource dependent

Fixed price, SLA dependent

Basic business linked –transaction-based

Business value linked – benefit-based

8

Capex - Opex models

Linear models Non-Linear models

Moving up the value chain – Customer perception

9

Emerging markets

Developed markets

Moving up the value chain – Reskilling

10

1 mnworkforce

Worker vsarchitect/ consultant

Servicing BAU

ReskillingmethodologyMulti-

layered, multi-

dimensional

Investment for reskilling

Back to First Principles

• Creativity in education

• Science over engineering

• Collaborate over compete

• Nurture small niche units

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Feedback / questions ….