Issues of IT Partner Business

The IT business in India is still dependent upon the partner network. This is despite the fact that E-commerce has become popular mostly in metro cities. But through the lengths and breadths of the country, partner network remains essential to move the IT products to reach the end customer. This is essentially true of the large volume of orders placed by the large enterprises and government institutions. E-commerce platforms can supply only in small numbers to individuals. But when the institutions and organisations need large supplies, they can’t do so without the partner network.

We interacted with some association leaders to understand how the IT business is evolving and what challenges they face. They also suggested some solutions which may be implemented to improve the IT business.

Association Leaders Speak

Sridhar R, Former President, Association of IT, Bangalore

What are your concerns about IT business in current times?

Global slowdown, supply chain disruption and lack of skilled manpower are going to be very challenging.

What are your thoughts about how the IT business can be improved?

Government projects, education, healthcare, fintech, defence and industrial automation still provide many opportunities in a growing economy like ours. Entrepreneurs must be aggressive in the market and use all modern tools available to multiply their presence.

How is the IT business going to evolve in the near future?

Hardware sellers will have to adapt to the newer markets which present themselves with the explosion of AI/ML, IoT-based solutions, Cybersecurity, gaming, 5G technology, AR and VR Etc.

Do you have any suggestions about the government policy regarding IT sector?

With technological obsolescence being very high, government must amend tax laws to allow 75% depreciation on IT spending to boost investment in hardware. Reduce duties on hardware and provide incentives to IT and ITes companies so that services revenues go up.

The education policy must encourage the use of English, as it is one of the key drivers working in favour of the Indian IT sector.

Manoj Khanna, Secretary, CMDA

What are your concerns about IT business in current times?

Our concerns about the IT business highlight significant challenges that the sector is currently facing globally. 

Following are some important aspects involved –

High Interest Costs and Operational Expenses – The global trend of high interest costs and operational expenses is indeed a challenge for IT businesses. This can hinder investment in expansion and innovation.

Job Layoffs and Expense Cutting – Many companies are resorting to job layoffs and expense cuts to manage costs, impacting overall employment and growth prospects.

Competition with online portals and big brands – In India, small traders are facing tough competition from online portals and large brand stores, which often receive preferential treatment from Original Equipment Manufacturers (OEMs).

What are your thoughts about how the IT business can be improved?

Following are some thoughts –

Government infrastructure spending – Infrastructure spending by the government can stimulate economic growth. This could create opportunities for IT businesses, especially those involved in infrastructure development and digital transformation projects.

Level playing field for small traders – Ensuring a fair competition environment between brick and mortar dealers and online stores (OLS) is crucial. This might involve regulatory measures to prevent unfair advantages and support small traders.

How is the IT business going to evolve in the near future?

Following are some important trends –

AI and Cloud management – The future of IT business is likely to be heavily influenced by advancements in AI and Cloud management. Companies should focus on adapting to these technologies to stay competitive and relevant.

Opportunities and Challenges – While new opportunities will emerge, there will also be challenges as certain outdated activities may become obsolete. Adapting to these changes will be essential for survival and growth.

Do you have any suggestions about the government policy regarding IT sector?

Following steps may help –

Policy Support for IT Sector – Government initiatives such as PLI and interest rate cuts can provide much-needed support to IT businesses, encouraging investment and expansion.

Fair Policy for Online Sales (OLS) – Establishing clear policies for OLS can create a level playing field, benefiting small traders who are currently disadvantaged due to preferential treatment given to larger online platforms.

In summary, addressing the current challenges in the IT sector requires a combination of supportive government policies, infrastructure investment and regulatory measures to ensure fair competition. Embracing technological advancements like AI and cloud computing will be crucial for the sector's future growth and sustainability.

Alok Gupta, President, PCAIT

What are your concerns about IT business in current times?

As a member of the IT fraternity and President of the PCAIT, my concerns about the IT business in cutting-edge instances revolve around numerous key areas.

Some concerns about the IT business in India include –

• Job market instability: Funding decline and mass layoffs in the startup sector.
• Skills gap: Need for workers with skills in emerging technologies like AI and machine learning.
• Competition: Intense competition in the industry, with many startups vying for market share.
• Government policies: Need for clearer policies and regulations to support the growth of the IT sector.
• Global competition: Competition from global companies and the need for Indian IT businesses to compete internationally.
• Data privacy and security: Ensuring the secure handling of data in light of increasing cyber threats.
• Keeping up with technology: The need for the IT sector to continually innovate and adapt to new technologies.

What are your thoughts about how the IT business can be improved?

In my view, enhancing the IT business calls for a multifaceted method. It entails making an investment in personnel development and education to address expertise shortages, fostering collaboration among enterprise and academia to promote research and development, advocating for supportive regulatory frameworks that inspire innovation whilst safeguarding consumer interests and promoting diversity and inclusion to harness the full potential of our workforce. Additionally, fostering a culture of lifelong learning and adaptability among IT specialists is crucial to maintaining pace with evolving technology and market demands.

How is the IT business going to evolve in the near future?

Looking ahead, I foresee the evolution of our industry closer to a more interconnected ecosystem as the IT business in India is expected to evolve in the following ways in the near future –

• Emphasis on the service sector: The service sector is expected to drive the growth of the IT business in India.
• Increased entrepreneurship: With the ease of doing business in India, there is expected to be an increase in entrepreneurship in the IT sector.
• Global business leaders: India is expected to produce business leaders who will be recognized globally.
• Jugaad phenomenon: Jugaad, a Hindi term, refers to the innovative strategies that Indians have developed to find solutions to everyday problems. This phenomenon is expected to continue to drive the IT business in India.
• Digitisation: Digitisation is expected to play a key role in the growth of the IT business in India.
• Start-up culture: The start-up culture in India is expected to continue to grow, with an increase in the number of start-ups and venture capitalists.
• Public-private partnership: The public-private partnership is expected to play a key role in the growth of the IT business in India, with the government partnering with private companies to provide services to citizens.
• Increased use of technology: There is expected to be an increased use of technology in the IT business in India, with the adoption of new technologies like artificial intelligence and machine learning.
• Global competition: The IT business in India is expected to face global competition, with companies from other countries competing with Indian companies for market share.
• Data privacy and security: With the increase in cyber threats, data privacy and security are expected to become major concerns for the IT business in India.

Embracing digital systems for communique, resource sharing, and joint ventures might be imperative to staying competitive and applicable inside the hastily evolving IT panorama.

Do you have any suggestions about the government policy regarding the IT sector?

In light of the evolving IT landscape, I urge government policymakers to prioritize a supportive regulatory environment that fosters collaboration and innovation. By incentivizing partnerships, facilitating cross-industry collaboration and investing in digital infrastructure, policymakers can drive growth, resilience and sustainability in the IT ecosystem.

Key priorities should include –

• Tax breaks and incentives for innovation, R&D and entrepreneurship.
• Robust cybersecurity regulations to protect data privacy and prevent threats.
• Financing development programmes for upskilling in emerging technologies like AI, blockchain and cloud computing.
• Strengthening the IT Startup ecosystem through incubators, accelerators, and funding programs.
• Funding research initiatives focused on emerging technologies and applications.
• Promoting digital literacy programs to bridge the technology-society gap.
• Enacting and enforcing data protection laws to ensure the safe handling of personal data and trust in the digital economy.

Interacting with these association leaders, it became clear that they have a good insight into dealings of IT business and they have some insightful suggestions about how to improve it. Following these suggestions may help the channels.

Read more from Dr Archana Verma here 

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