Indian IT companies need to look at more domestic business for future growth, according to Infosys’ Kris Gopalakrishnan
Speaking to mediapersons at BangaloreIT.biz 2012, the Infosys Executive Co-Chairman said that the time has come to look at new ways of doing things, such as focusing on the India market. “We must set an inspirational target and look at newer ways of generating income if we have to reach the $300-billion target,” he said.
While companies such as TCS, Infosys, Wipro and HCL have India-focused businesses, they have still not made headway, both in terms of revenues and profitability. Gopalakrishnan pointed out that in the next three years the technology spends in the country will be significant, which represents an opportunity for the IT sector.
He pointed out examples of government spending on e-governance projects in the range of Rs 20,000-30,000 crore. However, he said the Government should address issues of infrastructure, education and entrepreneurship as top priority to make policy implementation effective.
Indian IT sector exports are currently pegged at $100 billion but the going has been tough of late as the sector greatly depends on developed economies for its business, which are reeling under an economic slowdown. This, in turn, is affecting Indian IT companies such as Infosys and others as their clients are deferring IT spending.
On the domestic front, research firms estimate the Indian IT services market will reach $10.2 billion by 2013.
“The IT sector should focus on doing projects with Indian companies,” Gopalakrishnan said. He cited the examples of Infosys’ work with the Income Tax department, India Post and Karnataka electricity departments as the kind of work companies can look at in the future.