India needs to move up the value chain and look at building capability for high-end processes. The industry very clearly has to move from a transactional mindset to focus on driving outcomes and support a complete transformation to be prepared to take this industry to the next level. There is a growing realization that if we are not competitive, if there is no innovation, and if client sees no significant economic benefit, there is every chance that opportunities will move to newer geographies. To move up the value chain, the industry should aim to cross the threshold from being an optimizer to being a multiplier today.
The threat from emerging markets is more for the low-end jobs, which India need not be unduly worried about. In fact, such competition will force India to become more innovative and will push it to provide value added services. The focus is now on consolidation and moving up the value chain by providing end-to-end value added services, enhancing the role of technology and providing new engagement models. The focus is on speed and agility with a strong foundation in process, domain, functional and business competencies. While cost arbitrage will continue to remain critical, the need to be seen as a ‘multiplier’ and drive business outcomes will be a game changer.