The Hindu Business Line : `Innovating is real challenge for IT players'

THE challenge that IT companies face today is one of differentiation rather than cost, according to the CEO of Aspire Systems, Mr Gowri Shankar Subramaniam.

Speaking to Business Line, Mr Subramaniam, who was in the city for the launch of the fifth edition of CoimbatoreIT.com, said that generally, the presentations by the Indian IT services industry lacked innovation.

"Take any presentation. You will find no difference in most presentations but for the change in the name of the firm. Every model looks similar. Until now, the industry's growth has been propelled by cost advantage, global skills shortage and of course, English language capability. But we cannot pin our hopes on these. Cost competitiveness is not a sustainable advantage. The real challenge is in innovating, in moving up the value chain."

Referring to the current trend where every player is looking at the BPO space, Mr Subramaniam said: "Most Indian IT companies rely on selling cost as the primary advantage and view technology as their core area of expertise. But Aspire Systems is into creating a new paradigm for software product companies through outsourced product development."

Located at Chennai, this product development firm is keen to harness the dual power of outsourcing and offshoring.

"We facilitate rapid time-to-market at lower development costs by providing comprehensive services in the areas of product development, advancement, testing, implementation and maintenance."

The company is in the process of expanding its Chennai operations. It has 150 persons on its rolls, but is looking at recruiting 1,000 more over the next three years.

Mr Subramanian also said that the company proposes to invest Rs 10 crore towards building technology ability.

"We have availed a bank loan for 40 per cent of the proposed investment and the rest would come by way of internal accruals. Once we build capacity, we propose to go public."

According to him, the company was treading in a market that still remained unrecognised.Aspire Systems is confident of achieving a turnover run rate of Rs 50 crore by March 2006. (Run rate is the revenue earned in a particular month multiplied by 12.)

The actual run rate for the current fiscal has been estimated at Rs 20 crore.