Dotcom failure: Indian IT cos advised to change strategy

By Our Special Correspondent

NEW DELHI, AUG. 6. Indian IT companies will have to change direction in order to survive in the post-dotcom meltdown scenario. ``This is absolutely the best time ever for Indian companies but it will not be business as usual. They must develop brands and invest in ensuring global presence,'' counselled an array of experts from Gartner, one of the world's leading research advisory firms, ahead of a two-day summit scheduled to begin here tomorrow. Simply put, instead of deploying 1,000 software professionals to work on a single project, Indian companies must devise ways of selling a software to 1,000 companies.

Although Gartner's experts were understandably over-anxious to discount the impact of the economic slowdown in the U.S. and some other developed nations on Indian IT companies, the experts were realistic enough to point out that some of them, specially those banking exclusively on classic body shopping, may fade over the next few years. But the future will be bright for the smarter set which are exploring alternate markets and are waiting to tap plans by U.S. companies to outsource their business offices into India. ``Instead of feeling depressed by the doom-gloom prognosis, Indian companies should be worrying about being ready when things pick up,'' said Mr. Bob Hayward, Senior Vice- President, Operations, Gartner Asia Pacific.

According to the line given by Gartner experts, the slowdown in the U.S. is actually ``very shallow, very sectoral and temporary''. A recession/slowdown typically lasts for 14 to 18 months.

As the present spell began in November last, Gartner feels that the slowdown should not last beyond February next and could even be over by December this year.

India, at best, could be partially affected by this slowdown because its strength is in the software sector in which U.S. companies have indicated in a survey conducted by Gartner that the spending patterns and intention to invest will remain unimpaired.

The slowdown may hit countries like Taiwan and South Korea which focus on hardware exports as this segment has been affected by the slowdown. ``We do not see something like this happening in India,'' added Mr. Hayward.

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