India's IT industry bracing up for 'fourth industrial revolution'

Image: Mexy Xavier

R Chandrashekhar, president, NASSCOM

The first day of the 24th edition of the NASSCOM Leadership Forum opened to a full house with an energetic performance by UV light dance group Illuminati and a small gimmick wherein a remote operated microphone emerged from the stage for the first speaker. But it was not all light hearted banter. In no time, experts delved into difficult questions glaring into the face of IT services industry of India today – how to innovate and embrace change and remain sustainable.

The Indian software services industry is facing several headwinds - changing nature of the business, currency fluctuations and uncertainty in several key global economies, among others.

R Chandrashekhar, president, NASSCOM, says it’s not the first time that the industry has been challenged by innovation. “Companies will become leaner, fitter and better. Two-third of the population is under 35 years of age, we can leverage technology and brains, we have the skills to undertake the journey,” he says.

To put into perspective, the industry is expected to garner revenues of $160 billion in FY2016, including the contribution of ecommerce of about $17 billion. Also, for the first time, exports are contributing nearly $100 billion to the revenues.

BVR Mohan Reddy, Chairman, NASSCOM is optimistic that the Indian software services industry is on track to register revenues of $350 billion by 2025. “These are interesting and challenging times. Ambiguity is a part of enterprise. Five year plans are a passé. Cloud, Internet of Things… there are many powerful sources; there is an incredible opportunity to connect everything in a new way. Digital is reshaping business. They say we are moving towards a fourth industrial revolution where machines will join the work force and algorithms will have a board seat,” he says.

Start-ups will the innovation department of smart enterprises and they will look at these young firms for innovation and talent and collaborate with them for mutual benefits.