After its remarkable growth in the past two decades, the Indian IT-ITES industry is now a credible player on the world stage. To continue their growth and to attain newer heights, Indian firms need to recognise the importance of ‘Innovation’ for maintaining their competitive edge and fuelling further growth.

The term ‘Innovation’ refers to changes of products, services, processes or business models. In the organisational context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc.

Future winners will be decided based on their capability to innovate and translate their innovations into financial results. Today, India promises more opportunities for innovative technology firms, both Indian and international, than any other country perhaps.

On one hand, there is a huge unfulfilled market in India’s billion plus population for many products and services, including healthcare, education, financial services, retail, e-governance, etc.

These untapped markets present significant opportunities for low-cost and innovative IT solutions that may enable lean, cost-effective and value-creating business models.

IT and telecom technologies will be keys to provide the breakthroughs as some pioneering ventures have shown.
At the same time, India also has technologically competent domestic industries and firms that can be crucibles for innovations applicable even in advanced export markets. The Indian IT-ITES industry needs to tap into the enormous local talent both within its boundaries and in other Indian Industries to capitalise on these opportunities.

Firms that have the ambition to grab these opportunities by developing innovative business ideas and tune up their cultures and systems for collaborative innovations will reap huge benefits. Thus, the ability to innovate effectively will be one of the critical levers of competitiveness and sustained growth.