Need to protect software sector

Software is a showpiece industry that India has often been flaunting around quite legitimately. When Prime Minister Narendra Modi attacked Pakistan  for exporting terror, he referred to software as India’s great contribution to the world. The IT and ITES sector not only rakes in an annual revenue of $150 billion but also helps build brand India, so much so that it has been made an election issue in the US presidential race. The technology-driven industry has created over four million jobs for Indians in Bengaluru, Hyderabad, Pune, Gurgaon and Chennai, among other cities. Young and aspirational boys and girls working across the full value chain have generated a strong multiplier for the Indian economy, giving it a consumption boost scarcely seen in the world. TCS, Infosys, Wipro, Cognizant, etc have created an awe around them while global consulting majors like Accenture, Deloitte etc find India among the most cost-effective back office for driving the world economy.

That said, it is no more easy on a high pedestal which has started somewhat wavering in the last few years with different industry reports by Nasscom, McKinsey and Oxford pointing towards not-so-pleasant portents. The industry growth projections along with financial guidance by individual firms are not encouraging either. As the industry’s challenges sink in among financial market analysts, stock valuations have plummeted, forcing downward re-rating of the sector. What, then, has been going wrong? First, there were technology issues, which our industry could not keep pace with. The digital and robotics waves are no more something far-fetched but are facing us right here and now. While it is not too late to get our act together, there is absolutely no scope left for complacency and living on the laurels. Job prospects have been revised downward as firms are hiring less. According to an Oxford study, 47% of the jobs in the US, 69% in India and 77% in China may not exist in 25 years. 

The BFSI (Banking, Financial Services and Insurance) giving the Indian IT and ITES bulk of the revenue, as a sector, has come under a lot of stress following the Brexit vote. The global BFSI firms with their strong base in London are a worried lot about the way things would pan out once the deal for Britain’s exit from the European Union is negotiated. The good thing is, for every opportunity lost, equal potential is resurfacing in newer areas like cyber security, digital automation, including artificial intelligence. The key lies in adapting and shifting to the new business paradigm. Come what may, the showpiece must be preserved.