HOME > BUSINESS > India needs to move from services to software products now: KPMG

India needs to move from services to software products now: KPMG

The share of Indian companies in the global software product market can rise from about 0.5% at present to 18% by 2020, a new report by KPMG and Nasscom said.

Indian IT companies need to adapt their business models to incorporate more and more revenue from products, platforms and other intellectual property, KPMG said, adding that if they fail to do so, their growth rates will start suffering in the medium to long term.

KPMG said India currently has a 5.3% share of IT and BPO outsourcing, but its share of the global products market is woefully low.

Indian IT companies such as TCS and Infosys need to increase the amount of revenue from products substantially if they are continue to grow in the new age of digital technologies, KPMG said.

“IT BPM industry in India contributes about 6% of the total GDP. However, this is likely to reduce to 4% by 2020 unless the industry embarks on innovation led growth to become relevant,” the Nasscom-KPMG report said.

KPMG said companies need to encourage employees to come up with product ideas.

Wipro CEO TK Kurien said India was lagging behind in software products because Indians are typically risk averse.

“We don’t have the risk appetite,” Kurien said, pointing out that all great product companies have been created by a strong founder who risked almost everything they had in the product.

In India, Kurien, who was speaking at the Nasscom Leadership Summit in Mumbai, people are generally averse to taking big risk.

“In India, we have a huge fear of failure. This fear of failure keeps us from taking the same kind of risks,” he said.

“However, I am sure there will be some kids who will decide to go out and take that risk.”

KPMG also highlighted efforts by companies like Infosys, TCS and Cognizant to encourage employees to come up with product ideas and reward them based on the success of these ideas.

Follow ULTRA.news
FULL TEXT: Vishal Sikka’s resignation letter to Infosys board Vishal Sikka, the SAP-veteran who took over as the CEO of Infosys four years ago, has put in his papers after continuing differences of opinion with some of the key shareholders. He will, however, continue as the vice chairman of the company.He also wrote a long letter to the...
Wipro wins 5-year IT outsourcing deal from Telenor’s Bangladesh unit IT solutions provider Wipro said it won a five-year IT infrastructure and applications managed-services contract from Grameenphone, the Bangladesh telecom operator owned by Norway's Telenor. Under the agreement, Wipro will manage the entire IT infrastructure of the largest mo...
FITE says 11 cases against Tech Mahindra layoffs moved to courts The Maharashtra unit of Forum for IT Employees said 13 disputes over forced resignations and  layoffs at IT organizations have been moved to the labor courts after failed mediation attempts by state labor authorities.FITE meets Maharashtra CM11 of the 13 cases were filed...
Cognizant raises 2017 revenue, profit forecast Cognizant Technologies, one of India's largest employers, reported a 3.5% jump in its quarterly revenue in dollar terms, and raised the lower end of its full-year revenue forecast for 2017.It said it now expects revenue for the current year to be in the range of $14.70 billio...
IT companies using illegal tactics to force workers to resign: FITE The Forum for IT Employees, arguably the IT workers rights organization with the largest number of well-wishers and supporters, accused IT companies of using illegal and unethical means to force their workers to submit their resignations.In a meeting with Maharashtra Chief Mi...
Wipro opens Artificial Intelligence research facility in Israel University IT and outsourcing services provider Wipro said it will use students at Israel's largest university to jointly conduct research into artificial intelligence.The company inked an agreement with Tel Aviv University, Israel's largest institution of higher learning which is home ...
Who’s responsible for IT job losses? Ask this recruiter It's become something of a fashion to complain about job losses in India's big IT services firms.Companies like Infosys Ltd, Tata Consultancy Services, Wipro and Cognizant employ over a million people in the country, and have been letting go off tens of thousands this year as...
IT woes to bring down real estate rentals in Bangalore, IT hubs With IT sector witnessing subdued sentiment amidst pressure on hiring and annual pay rise for employees, the country's software and services hubs such as Bengaluru, Hyderabad, Chennai, Pune and Noida-Gurgaon in NCR are expected to see 10-20 per cent reduction in the housing rents...
Cognizant says will layoff employees, close facilities this year Cognizant, one of the largest employers in India, said it will let go off some of its employees and shut down some of its facilities as part of its ongoing shift away from traditional outsourcing to 'digital transformation work'.The company said it is 'accelerating its shift...
TCS opens drone facility in the US Tata Consultancy Services said it has opened its first research lab for drones in the US at its Seven Hills Park Innovation Center located in Cincinnati, Ohio.The lab will address the rapidly expanding demand for unmanned aerial vehicles and business Solutions across industr...
Cognizant layoffs may be heading to TN labour courts as FITE preps petitions Forum for IT Employees or FITE -- an organization that claims to speak for ordinary IT workers -- said a group of employees of Cognizant Technology Solutions will approach the office of Labour Commissioner of Chennai today."Affected CTS employees file petition to the Labour ...
Larsen & Toubro Infotech changes to ‘LTI’ as it seeks an independent identity Larsen & Toubro Infotech, which started out as a unit of construction major L&T, has rebranded itself, dropping its parent's name from its own and projecting a more independent brand.The new logo reads 'LTI' in blue, bold letters with the tagline 'Lets Solve', and the new br...
Wipro rebrands itself, reveals new logo Outsourced services provider Wipro Ltd said it was undergoing a rebranding to reflect its evolving business."The new brand identity signifies a higher level of engagement and brand permission that helps clients leverage Wipro’s expertise to address their business requirement...
Bots cut Wipro employee strength by 12,000 A NASA RobotA pioneering artificial intelligence program that started getting deployed around mid-2016 has helped Wipro Ltd reduce its employee numbers by 12,000 people, the company said in its recent quarterly update."The HOLMES platform generated productivity worth ove...
Wipro refuses to reveal how many employees are being laid off Wipro Ltd, one of India's top employers, refused to confirm the exact number of people that it was laying off as part of its annual appraisal process."It is part of the internal appraisal process," company officials said, refusing to go into further details.The media ha...
Indian IT industry facing layoffs as conditions worsen, warns Assocham Trump unveiled his 'Buy American, Hire American' program yesterdayIndian IT companies are bound to see "some laying off" of their work force back home due to various negative forces impacting the industry, Assocham -- an association of various industries -- warned."With ...
After Cognizant, Wipro employees on edge as annual appraisal starts India IT growth: Nasscom Strategic Review 2016Employees of Wipro Ltd are nervous as the information technology giant has kicked off its annual appraisal process this month.The first of the several reviews, known as L1 or level 1, has been completed, and at least some emp...
WATCH LIVE – Moving towards a less visa-dependent model : TCS New TCS CEO Rajesh GopinathanTata Consultancy Services has reported Q4 revenue of Rs 29,642 cr, a decline of 0.3%, and said his company will wait and see about new US visa regulations that are scheduled to come out today.NEW VISA RULESOn new visa regulations expected...
We expected better numbers: Vishal Sikka of Infosys Infosys Chief Executive Officer Vishal Sikka said the company's performance in the January-March period was below his expectations for various reasons."It is a challenging performance," Sikka said in a post-result press conference. "We were expecting a higher number," sai...
Infosys guides for FY18 growth of 6.5-8.5% in constant currency Infosys Q4 resultsInfosys Ltd said it expects its revenue to grow by a modest 6.5-8.5%, stripped off the impact of currency movements, in the year that started this month.The street was expecting a guidance of 7-9% growth.The guidance is well below the traditional gu...
FITE urges Cognizant employees not to submit resignations FITE rose to prominence protesting layoffs at TCSForum for IT Employees or FITE, a web-based IT workers' collective, has urged employees of Cognizant Technology Solutions not to resign voluntarily if asked by the company's human resources department."If the employee resi...
Trademark registration up three fold in India National Institute of Intellectual Property Mgmt, DelhiThe number of trademarks awarded by the India's Controller General of Patents, Designs & Trade Marks has jumped threefold this financial year, according to data obtained from the Patent Office.A total of 2.11 lak...
Fitch withdraws ratings on Rolta India Fitch Ratings has withdrawn its ratings on India-based Rolta India Limited, after the Indian IT company said it was no longer interested in continuing with the arrangement."Fitch is withdrawing the ratings as Rolta has chosen to stop participating in the rating process. T...
Wipro buys InfoSERVER, a Brazilian IT outsourcing company Weeks after acquiring Appirio, Wipro is at it again. This time, it is buying InfoSERVER, an IT services provider focused on the Brazilian market, for $8.7 Mn (Rs 60 cr). Two-decade old InfoSERVER provides custom application development and software deployment services, th...
Tech Mahindra opens robotics, AI and digital services center in Dublin IT services provider Tech Mahindra opened a new facility in Dublin, Ireland to focus on emerging technologies such as Robotics and Automation, Business Analytics, Cloud Infrastructure and Digital Services.The new centre would employ around 150 engineers over the next three ye...