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06
JUN
2013

Challenges faced by IT Companies in India

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India has branded itself as one of the favourite destination for application development outsourcing, owing to a great combination of lower cost and high quality IT. It has been playing a major role in the global market and has claimed the benefits of the globalization opportunities in a wider way. IT sector of India has largely developed over a period of decade but it is still in its developing process. In Indian IT sector, the techies are working harder and harder to generate better revenue from the domestic market. Various challenges have eroded the research and development levels, about which we need to be alert and proactive in order to align the strategies and decision-making with various opportunities in the current market. These days IT sector is like a game of “two steps forward and one step backward”, and that’s in the good days. In other days, it is most definitely one step forward, two step backward and you trip over because you don’t see anybody sneaking up and you and that somebody treads on your face while you are lying on the ground.

The United States have always been India’s largest trade partner, source of foreign money investment and external job opportunities for the Indians. Any downfall or slow of the US economy is likely to hurt India more today than the past times. The US economy is a credit-driven economy sustaining on scrounged capital. What characterize the economy are high savings consumption and fewer saving. The preeminent behavior has led to credit being extended to borrowers who do not have the capacity of repaying, resulting into high default rates, turning into losses in the financial system. There are high signals of slowdown in the US economy- rising unemployment rate, large credit defaults and falling real estate prices which are heating up the Indian economy and heading towards slowdown in growth.

Some of the major challenges faced by Indian IT Companies are:

Expensive & Unskilled Manpower
IT industries have become expensive due to rapid increase in the cost for the manpower. There has been regular increase of salaries by 10-20% every year. This increase in the salaries without correspondent increase in output levels per person is eating into the profit levels of the Indian IT companies. In the earlier times India provided “less expensive, highly skilled manpower”; currently it has run out of that “skilled” manpower and whatever manpower is available is either not skilled enough or highly expensive.

Management
While talking about management skills, questions are raised about the quality of management in IT sectors due to relatively low levels of skills in manpower and overall business performance. Managers must possess a combination of specific competences and softer skills and attributes to manage and motivate employees. Changes in technology and organizational changes can create a need for managers to continually develop and enhance their competencies and their personal attributes as part of an ongoing development process.

Security
The failure to address security problems today is by and large caused by organizational issues, not technological limitation. The major organizational obstacles to an effective security program are- when many companies aren’t even aware of the attack, whether internal or external, the majority of companies with massive security suffer from head in the sand problem. The other obstacle arises when though you have a good security team that knows what the issues are, more often than not there are major organizational obstacles to actually solving the problem. Political battles, turf wars etc, destroy the effectiveness of more security programs than the lack of any product or technology. To be an effective part to have a more secured technology, one should have Knowledge– of what needs to be done; Empowerment—to make the necessary changes; and Talent- to execute it properly.

Customer service
One of the challenges faced by IT sector in India is to improve customer service by listening to and meeting the client’s need. IT has been suffering from bad reputation when it comes to satisfying customer needs. Many a times, the work is done incorrectly or not upto the customer’s satisfaction and requirements and it is at the end the customer who ultimately determines what is good and what not.

Human Resources
There is a high need to develop creative ways to minimize stress, satisfy employee needs, and match corporate needs to employee goals. Being in the developing country, workload is increasing day by day, a relaxing break is must- anything that can give IT professionals a break should be considered to retain valued employees leading towards growth of the nation.

Others
There are many more challenges which are somewhere the other side, hampering as well as boosting up the spirits of techies. Increasing productivity, Maintaining and accomplishing tasks at a time, managing budgets, creating good public relations/marketing, multinational operations etc, such challenges have been at times difficult to overcome but they have encouraged the IT-techies to work harder and harder to setup and enhance the growth of the country’s IT sector.

Throughout this article, I have written about IT as if it were some amorphous creature existing out there, somewhere. It’s not. “IT” is you. You will have to address these challenges, and that can be a daunting task. But what can you do personally? IT has met challenges like these in the past and it is the creative, out-of-the-box thinkers who have become most successful. New ways of doing business will be required. You can be part of this change by doing your job to the best of your ability. You can also recognize how your job can be changed to meet these challenges, no matter how small the part you may play — and that can make a big difference company-wide.

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