Challenges Facing the Indian IT Sector & How to Overcome Them

Due to performance and legal issues from India’s IT sector within the last year, relying on overseas IT services is no longer the best option for your company’s IT needs. In a recent article from Business Standard, the publication sheds light on the current state of IT outsourcing industry.

India’s $150-billion IT sector is the top export contributor for their economy. Despite high performance expectations, only two of three IT leaders, Tata Consultancy Services and Infosys, were able to meet market expectations for the 2015-16 fourth-quarter. Wipro, the third industry leader, underperformed, and gave room for the mid-sized IT company, Mindtree, to produce great results despite economic disparities.

This same economic disparity has also caused adjustments to the initial fourth-quarter projections. With growth expectations decreasing only around 2%, the top two industry leaders still missed the goal. Now, with Infosys’ recent high performance for the year so far, the industry will rely on them to meet the 11.8% to 13.8% revenue growth projection for the 2016-17 year.

It’s not just a numbers game either, as legal issues have also risen. Tata Consultancy Services was fined for stealing intellectual property and Infosys has broken visa and immigrant rules.

With struggling growth and legal issues in India’s IT industry, the main objective for the coming year shifts from not only needing to meet and exceed growth expectations, but to strategize on how they will advance amongst industry challenges. These challenges include how they will keep relationships secured with the U.S. and Europe.

This raises an obvious question: What is the solution to these industry challenges? Hiring more qualified engineers? Seems easier said than done.

Our solution, on the other hand, is local IT support. Though outsourcing IT services has been the norm, and cloud services have become increasingly popular over the last few years, having local IT support presents the best security for businesses.

Relying on overseas communication and maintaining a solid internet connection aren’t easy feats. It’s difficult to find dependable communication halfway around the world, and even the strongest of network connections will still bottleneck your load speeds when compared to local hosting options.

Having razor-sharp technicians on hand to troubleshoot your issues is just one benefit of local IT support. OSG offers tech support of all shapes and sizes, while helping numerous businesses develop their own custom support plan for all of their IT needs.

Learn more about our services, or get in touch with us. We’ll walk you through the process of taking your business to the next level.

You can learn more about the issues outsourced Indian IT is facing on Business Standard.

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