Friday, September 24, 2010

The IT Industry

It was lunch time! My determination to do something that I want to do and in the process take risks led me to my new workplace in a new city. I collected my food coupons and proceeded towards the dining hall ! I just entered the hall and was amazed just by the sheer size of it! Huge was an understatement. I started counting the number of people present, but it didnt take me much time to realize that its not humanely possible and if I still wanted to, I would have to wait till tea time :-)

My mind immediately started working at the aggregate level. If one campus can hold so many people and this country has many such campuses what is the strength of the industry that we are talking about. The Indian IT industry today stands at 50 Bn $ and employs millions of people in similar or even bigger campuses !

I asked myself, can this growth story come to an abrupt end ? What is the potential of the industry and are there roadblocks ? Isnt the IT story that we have witnessed in the last decade similar to the textile boom that Mumbai experienced in the 50s and 60s where the textile sector was the single largest employeer and everyone would rush to get a degree/diploma in textiles, get a job in of the thousand mills in Mumbai and then settle down. But then the textile sector today is non existent. Can the same thing happen to the IT industry ?

I think the potential is huge ! today even at 50bn USD India gets only 3 to 4% of the global IT outsourcing pie. Mind boggling isnt it ? You can imagine whats still in store

Are there roadblocks ? Most certainly. I think the key is policy decisions. I cant think of any right now, but some draconian decision that might make India extremely un-competitive is the only roadblock I see, the others are not a problem: the industry is led by extremely intelligent people who can handle them !

In terms of employment opportunity I feel we all must be greatful to this sector which absorbs millions of grads/post grads/science grads - Just for a moment check out the number of people graduating in the last decade and no of people which the IT industry absorbed ! and then think if the IT industry wasnt present - What would have happened !!!

Its simply phenomenal