Celebrating 10 years of CIO Independence
On 15th August, India celebrates 60 years of independence. India gained independence in 1947 as a unified nation after an intensive struggle for independence. As you probably know, India is the second-most populous country in the world with an estimated 1.19 billion people in 2006.
The Indian software industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 39.6 billion in 2006-07. No other industry in India has notched up similar growth or had such a progressive effect on India’s economy.
Driving the industry in the future to a $60 Billion in FY09-10 target will be the following factors:
· an addressable global market opportunity of around US$ 300 billion
· growth in existing businesses and new services lines
· India’s status of “most preferred destination for global IT sourcing”
· The country’s talent pool, top-quality management and security and quality focus
So why is this important for Global CIOs. The last 10 years in particular have seen India emerge as the favorite destination (65% share of the global offshoring market) for CIOs worldwide. CIOs who were stuck with lack of scale, talent-crunch, flexibility and high costs suddenly found an avenue for success. Most of them actually succeeded in leveraging Indian talent successfully. Most of them found freedom and independence.
Moreover, as a result, India gave birth to several successful global multinationals including Infosys ofcourse, that went on to establish a strong presence in multiple countries and established themselves as global leaders. Large Global IT Services giants in the last 10 years have suddenly discovered India as a hub for their operations as well.
While the future outlook for the Indian services industry appears bright, the sector will need to grapple with certain short- to medium-term challenges such as the appreciating rupee, paucity of “suitable, employable,” talent, infrastructure development and sustenance of a positive policy/regulatory environment. These require timely, consistent and continued effort from all stakeholders including the industry, government, and academia.
As far as the next agenda for the same CIOs: After successfully using the “value for money” wage arbitrage advantage and then making the transition from on site to off shore delivery through the perfection of high quality processes and the ability to migrate technology development and business process management to Indian centres, the third wave of success for these CIOs may well come from innovation using the global delivery model again leveraging India and other emerging economies successfully.
Cheers to 60 years of India's independence and 10 years of Global CIO's independence. Cheers to the Global Delivery Model.