Nandan Nilekani emphasises that Indian software companies should move up the value chain fast. The incumbent managing director, president and chief operating officer of the Bangalore-based Infosys Technologies, Nilekani, puts forth what is in store for the Indian software industry. Excerpts:What should be the long-term strategy of Indian software players?
Indian software companies need to move up the value chain fast by providing end-to-end consulting services and creating unique software products and services. For this, they have to invest in research and development and acquire domain expertise in their areas of operation.What growth prospects do software products have?
Growth prospects of software products are rising. However, customised software development will continue to be the mainstay of Indian software companies. For, software products involve high marketing expenditure.
What should Indian software companies do to become high-performing?
Indian software companies should aim high and benchmark themselves against global competitors. They need to tap emerging opportunities, differentiate themselves, increase revenue productivity and move up the value chain.
How relevant is branding to the Indian software industry?
Branding is the key differentiater for moving ahead in the Indian software industry. A software company is no longer evaluated only on a cost platform, it is also being evaluated on a value platform. If you want to be a global software player, it is important to build a strong brand equity.
How should Indian software companies exploit opportunities in under-penetrated markets and increase marketshare in existing markets?
Indian software companies should open regional sales offices and tie up with local partners. And reconfigure their organisations to address geographical market segments.
How to stem manpower turnover in the Indian software industry?
I can tell about what we are doing at Infosys Technologies. We consider people as the most important resource and we offer a package of innovative benefits to all our employees. We were among the first few in India to introduce a broad-based employee stock option plan. We also provide a collegial atmosphere and have an informal culture.
Where do you see the Indian software industry a few years down the line?
The future is very promising. The Indian software industry will continue to grow and growth will be driven by buoyant exports. According to the Nasscom-McKinsey report, Indian software exports are poised to reach US $50 billion by 2008. The software industry will catalyse the transformation of the Indian economy.