Impact of Insourcing on IT Firms in India 🌐
Are you aware of the recent shift in the IT industry, where companies are bringing back outsourced technology work in-house? This trend is significantly impacting IT firms in India and abroad. Let’s delve deeper into this phenomenon and understand its implications for the industry.
Addressing the IT Market Shift 📉
- Top Indian software exporters like Tata Consultancy Services (TCS), HCLTech, and Cognizant, along with multinationals like Atos, are losing business
- HCLTech reported a 5% drop in growth in the financial services vertical due to clients insourcing work
- Tech Mahindra CEO cited risks from this shift in the BFSI vertical
- Several clients are limiting third-party vendors, affecting the IT services landscape
Global Capability Centres (GCC) Impact 🌏
Experts suggest that for every GCC setting up in India or elsewhere, an IT services firm experiences a decline in business. The high cost of service providers, around 30% more than the actual cost structure in India, coupled with specialized needs related to artificial intelligence, are driving this change.
Shifting IT Services Exports Landscape 🔄
The share of IT in India’s services exports has decreased by two percentage points over the past three years. This decline underscores the growing importance of other business services, including GCCs, in the export segment.
Peer-to-Peer Lending Seeking Regulatory Clarity 💸
Have you heard about the peer-to-peer lending industry’s struggle to navigate regulatory guidelines and access secondary market participation for investors? Let’s explore the challenges faced by P2P lending platforms and their quest for regulatory clarity.
Challenges in P2P Lending Sector 📉
- P2P lending platforms reaching out to RBI for clarity on secondary market participation
- RBI’s recent crackdown on partnership businesses impacting the sector’s growth
- Industry seeking regulatory guidance to enhance investor participation and liquidity options
Expansion of Data Centres to Smaller Cities 🖥️
India’s data centre industry is witnessing a shift towards smaller cities like Kochi, Jaipur, and Lucknow. Companies are expanding their data centres to cater to a distributed user base across the country. Let’s explore the rationale behind this decentralization of data centre operations.
Rationale for Data Centre Expansion 🌐
The strategic move to establish data centres in tier-II locations is driven by proximity to customers for faster response times and cost-effective operations. Companies like Airtel’s Nxtra and NTT are eyeing the eastern corridor for market expansion opportunities.
Shiprocket’s Venture into Offline E-commerce Space 🚚
Shiprocket, backed by Zomato, is venturing into enabling e-commerce transactions for the offline general trade segment. Discover Shiprocket’s new initiatives and services catering to the evolving needs of offline retailers in the digital era.
Digital Transformation of Offline Businesses 🛒
- Launch of a WhatsApp storefront bot and quick shipping services for small businesses
- Expansion beyond online retail to tap into the offline general trade segment
- Customized solutions for small businesses to compete with e-commerce giants
Hot Take: 🌟 Revolutionizing the Tech Landscape
As the tech industry undergoes significant transformations, IT firms are reevaluating their strategies in response to insourcing trends. Peer-to-peer lending platforms seek regulatory clarity to enhance investor participation, while data centres expand to smaller cities to drive decentralization. Shiprocket’s foray into the offline e-commerce space reflects the evolving needs of retail businesses in the digital age. Stay tuned for more game-changing developments shaping the tech landscape!
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