Key Points
As we enter earnings season, the streets expectations from Indian information technology (IT) services firms such as Cognizant, HCL, Infosys, Tech-Mahindra, TCS and Wipro are muted..
A few weeks ago, I wrote about how Indian IT firms have stuck with their paisa vasool (value for money) model by trying to offer services cheaper than their foreign competition, and that this model is in danger of being upended by IT firms such as Accenture, which have clearly been more adroit in responding to recent changes, starting with the digital wave of SMAC (Social, Mobile, Analytics and Cloud)..
Accentures Song business unit, which by itself is as large as Infosys with revenues of $18 billion (bit.ly/48N5J39), should give Indian firms something to think about..
Indian IT firms, historically known for their cost-effective services and large talent pool, have been conservative in their approach towards digital and AI adoption..
Apart from Accentures showcase of a broad spectrum of digital services, its investment in research and development (R&D), partnerships with tech giants like Google and Microsoft, and its acquisitions in the digital space underscore the companys commitment to staying ahead on the technology curve..
