With profit margins under pressure in numerous software companies in India, what would you suggest the companies to do to move up the value chain?
The first approach is specialisation and differentiation of services. Also, domain knowledge is very essential.

Where do you think India stands in the world IT scene - just a supplier of trained manpower or a strong force in software development and solutions?
India is increasingly becoming a very important player in providing turnkey solutions and developing innovative new software.

Soon e-commerce will become just commerce. What is your advice to those companies pioneering e-commerce?
The major learning experience from the first wave of Internet companies is the importance of a business model where the revenue proposition is clear.

The dotcoms may have got badly hurt but I still believe that there is very large future for Internet-based companies as the Internet continues to evolve. There will continue to be a distinction between e-commerce and commerce for a long time. The importance of click and mortar in creating successful Internet businesses will be significant. Certainly, many companies will go down, but there will also be outstanding successes, which will change the shape of many industries.

Everyday some new technology is coming and yesterday's new is today obsolete. Where do you think this will lead and where will it end?
The pace of change in the world will only accelerate. The implication of this is that successful companies will have to develop speed as a key capability. Also, enduring organisations will have to develop the capability of moving from one technology cycle to successive technology cycles.

One year back there was a gold rush but more than people who dug for gold, people who sold spades made more money, do you think there are more opportunities in e-CRM and consulting companies? If the market reaction in the beginning of 2000 was unrealistically optimistic, the pessimism at the end of 2000 was equally unjustified. The pendulum swung to the opposite extreme, whereas a balanced position was needed. The age of the Internet has just begun. There will undoubtedly be many opportunities ahead not only for e-CRM and consulting companies but also for the many industry segments which constitute the framework of e-business for example, supply chain, e-market places, e-procurement, wireless applications, etc.

What is MindTree's approach towards B2B business and how do you envisage its growth?
The B2B segment is very clearly the largest segment for e-business worldwide. In India, it is particularly important because of the low penetration of computers, which will further restrict the growth of B2C for some years. Accordingly, MindTree Consulting considers B2B as a very key part of our consulting and solutions strategy. The basic approach we have in this area is to assess business requirements, help the customer to validate the business model and architect solutions, which incorporate the latest technologies and are also built around leading platforms with whom we have partnerships. MindTree Consulting has the unique advantage of having a technology practice where we have in-depth knowledge of technologies like wireless, security, etc.

Which is the best place to start a company - Silicon Valley or India?
In terms of raising finance, such as VC funding, my belief is that India is today one of the markets in the world where this is readily available. However, a company irrespective of its origins in the technology space needs to be aware of the latest developments. From this angle, a Silicon Valley presence is very useful. India provides scalability and lower costs. Accordingly, these are complementary to each other and it is best to get an optimum mix rather than see this as an either/or situation.

It has been observed that the e-commerce trend has made an essential shift from B2C to B2B? Is this because of the lack on PC/Internet reach in India? Or is it because B2B is more profitable?
The B2B market in some respects is like a wholesale market while the B2C market can be compared to a retail market. Obviously, there is a need for both. Certainly, B2C growth in India is constrained by PC penetration and also consumer habits take time to change. Ultimately, there will be a large market for both B2B and B2C in India, thought the initial growth of B2B in India will be faster.

Is it necessary for a company to put the SCM infrastructure in place, before implementing CRM initiatives?
These can be seen as independent steps. It depends on the business imperatives of the company. If there is a heavy pressure to improve customer service and reduce the cost of after-sales service, there is a greater priority for CRM. On the other hand, if there is a large scope for cost reduction, cycle time reduction, etc., then SCM should be prioritised.

What, in your opinion, is the potential for "e-learning" in India, over the next five years?
e-Learning has to be a major space in which India can become a leading player. Accordingly, the potential is fantastic. The leading training companies such as NIIT have the obvious advantage. There is still a great chance for new companies to come up with new models and become successful.

Also, e-Learning can be applied to hundreds of business applications and individual knowledge areas. Therefore, there is a scope for multiple players who will specialise in different areas. A few large companies will of course span across many segments.

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