‘IT industry’s hierarchy will change as skills matter over scale’

Customers look for expertise more than scale now. So, a company with a thousand employees stands an equal chance when compared with an organisation that has a lakh (of engineers). For projects, companies like Mindtree get the top three experts in that domain (banking or retail).

Secondly, technology has so dramatically changed the way we do our work. Handwritten software code forms a very minuscule part of our business. Five years ago, if 70 per cent was handwritten, now it is about 8-10 per cent. All that has moved to platforms and automation.

The effort required to deliver output for customers has also reduced. One of our customers in the US is a huge auto components maker and we were able to generate $500 million in revenue in four months. So, we are able to create large impact in a short time. This requires a different mindset.

There is a huge need to re-skill the workforce, especially in middle management. The ones in the 35-40 age bracket find it difficult to adapt to the changed environment. This requires in-depth understanding of technology, something which they have not grown up with in their career. The millennials bring in a lot of passion and adapt to technology naturally. Most of them would not have even used a dial phone. Sometimes, I wish I could go back to being an 18-year old, study engineering and join the industry.

I would say that the industry can easily triple to $500 billion in 5-7 years. However, the current hierarchy of players in the industry will change. There will be mergers and acquisitions and new companies will emerge. Using technology in the next five years, India can add a trillion dollars to the GDP.

For example, through additional financial inclusion, $150 billion can be added. Similarly, changes to healthcare and education can add another $400 billion and the rest will come from other sectors embracing technology. We have carved out an India business unit. Today, as the industry has matured, companies have to make important strategic choices and success will depend on that. The top management will be tested.

Our experience is that there are two trends. Adoption of technology and innovation is still strong there. One [only needs to] look at Apple, Microsoft, and others. However, the political environment is acting as a speed breaker. There is regulatory uncertainty. There is an image that Indian software companies are job takers. We are working with the government to address those issues. Regarding H-1B visas, we are not big users and have invested in local hiring [in the US].

For us, we have committed to 1,900 campus additions, which would include engineering and MBA graduates. A small part of it will be outside India. On top of that, we will do lateral hiring to fill up attrition, which is around 11 per cent. We will continue to hire.

I don’t have much of an idea. There is a gap between qualified raw material and the final product, and we are taking up the ownership to bridge the gap. Regarding skills, we are adopting an empathetic and efficient approach towards the workforce.

We engage with students in college before they graduate: we design their curriculum and do some teaching, both physical and online.

All hired talent are trained in Bhubaneshwar. They are taught soft skills aspect, as well as on technologies.

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