Vanisha Joseph
The Economic Times (Bangalore edition)
After being beaten to pulp around the year 2000, this hero made a robust comeback in 2004 making the moolah pour in for all. But in 2008 he suffered a serious blow. Despite this, people expect a phoenix-like comeback in a year or two. This hero is the technology sector that makes a Bruce Lee-like entry after every fall. This time too, the IT sector is expected to turn the tables. But the wounds are deeper making the comeback difficult. While some IT companies feel the hero will reappear and beat the downturn blues, others feel it might be a fresh face that clicks.
Sun Microsystems expects technology to play a crucial role in driving growth, as it is a must for clients to drive down costs, drive up utilisation and drive change that will yield immediate and long-term benefits.
Arjun Rao, CEO, ValueLabs, feels: “With technology being integral to the modern economy, any effort at recovery should give thought to its technological aspects.” Besides grand, large-scale projects suggested by IBM chief executive Samuel Palmisano that rely on the PPP model of funding, companies should consider market-focused innovative initiatives aimed at improving existing processes, delivery mechanisms and cost structures.”
Other IT players, however, are a bit skeptical about this optimistic vision. With the current global recession unprecedented in its scale and spread across geographies, they doubt if technology investments could be the sole engine driving a return to growth.
“In the Indian context, the recovery will be led by investment and consumption. In both cases, the link with technology is tenuous. Technology will make enterprises and the government more competitive. It will be a beneficiary of the increased investment in infrastructure and the focus on efficiency and productivity,” said Nagendra Venkaswamy, MD (India), Juniper Networks. At this time when spend on technology will go through scrutiny, what segments of the IT/ITeS sectors are expected to take the lead in the recovery route?
Manav Garg, CEO and founder, Eka Software Solutions bets on IP-based business as they offer long-lasting offering to clients. Telecom, mobile, remote infrastructure management, virtualization, security systems are other promising segments for the future.
A recent Nasscom-McKinsey report, titled ‘The Rising Remote Infrastructure Management Opportunity’, said the RIM market stands at $96-104 billion, of which $13-15 billion is likely to be contributed by India by 2013. This growth is expected to create 3.25-3.75 lakh jobs. Juniper Networks is clicking on the domestic economy demand, especially telecom, to drive the technology fuelled recovery plan. With the telecom sector largely unaffected by the downturn and new initiatives being taken, the telecom sector is promising for companies like Juniper Networks, with 65% of business from telecom, to survive the crisis.
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