Volume 15, Number 1 Article by Som Mittal March, 2003
Indian SMIT Sector: Poised for GrowthIndian SMIT Sector: Poised for Growth :
After many years of phenomenal growth, the new millennium saw enormous challenges confronting the Indian software and IT services industry. But the strong fundamentals and the core value proposition of the industry led to its outperforming all other sectors in the country. Small and medium enterprises, Som Mittal, President and CEO, Digital GlobalSoft points out, did well, contrary to popular belief.
Size, a very critical factor in the software services industry, is indicative of the scale of operations, market reach and reputation, and SMITs run the risk of being marginalised by large scale players. The market factors inhibiting SMIT growth are the lack of reach to key markets, lack of a marketing strategy, of strong technical and domain expertise, strong client references, the inability to attract high quality talent and competitive pricing pressures. However, the future belongs to SMITs provided they tap the domestic market, focus on vertical domain or technology niches or on specific geographies, acquire a good management team, be ready to enter into strategic alliances and partnerships and leverage mergers and acquisitions.
As Vice Chairman NASSCOM, Mittal details the organisation’s initiatives to further the growth of SMITs, including the provision of networking opportunities and forums of interaction with larger players and CIOs from developed markets. Surveys indicate that India remains a preferred outsourcing destination for the US and Europe and SMIT niche players would be the ultimate beneficiaries.
Reprint No 03108a