India's IT growth strategy
According to an IT industry forecasting, India is on the way to reach another major milestone of making $120 billion dollars this year. In the past few years, India top IT giants are hiring workers all over the world to consolidate their power thus prevent others from getting into this lucrative business. An industry analyst commented: “There is limited supply of IT workers in the world. It is obvious that the strategy of India's IT companies is to hire as many of them as possible and grow quickly so there is not much left for other company and that is why they dominate the IT market.”
This year, India's Software giant Tata Consultancy Services (TCS) is planning to hire additional 50,000 IT workers to meet global demand. Its Chief Executive Officer (CEO) told reporters that TCS is preparing to grow across industries and in many global markets. TCS will hire 50,000 people this year wherever they do business, including in the USA and UK. To keep their workers happy, TCS is will give a wage increase of 8 percent on the average, to all employees. Last year, TCS had successfully hired 70,400 IT workers and its business has been growing faster than expected. With business demand continuing to be robust, TCS send its managers to universities across India and have made over 43,600 offers to graduates. Today TCS has total of more than 240,000 IT workers and become one of the largest IT Company in the world.
Last year, TCS was the first Indian IT outsourcing company to make more than $10 billion dollars with profit more than 2.2 billion dollars. Commenting on the numbers, TCS said that the company has a strong momentum and will continue to grow this year as the global economy has improved. The CEO said: "We feel pretty good about the performance as we have kept our focus on profitability and consolidated our market leadership." The main growing market is still the U.S; TCS has been very active in hiring U.S software engineers to work for them. TCS CEO said: "We have a good number of new hires now, training has been completed and ready for deployment. We have made several offers and continue to do as our business increases."
The performance of India's IT companies in the U.S is unprecedented. In the past ten years, these companies have grown from relatively “unknown” to be IT giants, much bigger than their competitors such as IBM, Accenture etc. Their growth strategy has become the case study for many business schools as they are expanding their influence all over the world. Today you can almost go to any countries and find Indian IT companies doing business there. Industry analysts believed that their growth were due to their flexible strategy when they start with low cost model to enter the market and quickly expand to meet the industry's needs. However, their key profits are mostly on large outsourcing deals over the past few years with each deal worth hundred million dollars. Other analysts noted that India's IT giants are very good at predicting the market shift when technology changes. They quickly adjust their workforce's skills by investing in trainings to meet global demand where their competitors cannot do that quickly. He concluded: “It would be impossible to compete with them if these companies grow to the size of 300,000 to 500,000 workers with diverse skill sets. They could control the entire global IT market.”
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
