Rekha M Menon is the primary girl Chairperson of the Nationwide Affiliation of Software program and Providers Corporations (NASSCOMIN). Additionally the Chairperson and Senior Managing Director at Accenture in India, Rekha Menon speaks to BusinessLine in an electronic mail interview on the teachings the pandemic has taught to the IT business, the challenges and the expansion prospects.
How is it to tackle the position of the (first girl) chairperson of Nasscom, and what’s your roadmap on this new position?
Because the apex physique for the $194-billion Indian know-how business that contributes roughly 8 per cent to the nation’s gross home product, Nasscom performs a vital position in supporting India’s socio-economic progress agenda. Being the Chairperson of Nasscom is a large honour, and because the first girl Chairperson, I hope I can encourage extra ladies within the tech business to intention excessive and pursue their ambitions.
With the pandemic-induced acceleration of digital adoption, the business is nicely on its solution to obtain the $300-350 billion progress goal for the following 5 years, and my focus is to strengthen the levers that may drive our management within the digital financial system and catalyse innovation — ecosystem collaboration, the suitable coverage setting and turning into the digital expertise capital of the world.
How has the IT Business weathered the second wave of Covid-19, challenges confronted and alternatives for the sector?
The know-how business has confirmed its capability to develop and remodel and stay resilient within the face of problem. With the well being and security of our individuals as our guiding precedence, we now have transitioned to a hybrid working mannequin, making certain that we proceed to ship on our dedication to clients even by way of essentially the most disruptive intervals.
The pandemic has accelerated know-how adoption, and has led to a mindset shift amongst shoppers, which presents great alternatives for future progress. To understand these, the business is working with authorities to ease insurance policies similar to round distant working and knowledge utilisation.
Whereas the business continues to do business from home, knowledge stays a treasure, and a well-positioned knowledge technique will assist shield companies and shoppers.
We additionally have to pay pressing consideration to upskilling our expertise in key areas of progress like cloud and AI.
What has the business learnt from the disaster, particularly from a BCP (Enterprise Continuity Planning) standpoint, and what are you doing in another way going ahead?
The pandemic has been a reminder that agility is crucial to resilience, and as an business we weathered the disaster higher, and emerged stronger due to the investments we made in a world-class BCP infrastructure that was agile and adaptable by design. The business was capable of speed up digital adoption throughout sectors with give attention to automation and AI-led transformation, resulting in a powerful demand and even stronger deal pipeline.
We consider that with an enhanced give attention to people-centric innovation, trust-based collaboration, a conducive coverage framework, accelerated go-to-market methods, unified expertise focus, and flexibility to hybrid work fashions, progress will speed up.
How would you characterise the post-second wave progress of the IT business?
The Indian IT-BPM business is witnessing a powerful restoration, returning to pre-Covid degree progress, with strong deal pipelines and strong margins, regardless of a sudden and powerful reset. Our revenues grew 4.3 per cent quarter-on-quarter and 19.5 per cent year-on-year with digital being the important thing driver, with constant sequential and Y-o-Y progress throughout key markets. We count on this progress to proceed on the again of worldwide GDP progress and uptick in know-how spending.
What are the assorted immersive applied sciences which can be bringing out vital alternatives within the nation?
Applied sciences like AI, IoT, Blockchain, 3D printing and Robotics can play a transformative position within the nation’s socio-economic progress by driving a step-change in democratising primary providers like healthcare and training and making them extra environment friendly, reasonably priced, and accessible. They’ll additionally unlock the great worth trapped inside the nation’s manufacturing business and provide chain, whereas creating new alternatives for progress throughout industries by enabling enterprise mannequin innovation at velocity.
For instance, Open digital ecosystems can unlock greater than $700 billion price of enterprise alternatives for India by 2030 throughout sectors similar to healthcare, agriculture, MSMEs, training, Applied sciences which can be knowledge & digital pushed and allow wealthy experiences and outcomes at scale are the necessity of the hour.
Is the Indian IT business going through pricing and margin points? If sure, please elaborate.
Covid-19 has accelerated digital adoption throughout industries, and know-how service suppliers are witnessing a pointy progress in digital offers. The demand setting for know-how and digital continues to be very wholesome, with a powerful deal pipeline, as demonstrated by the final quarter outcomes of business majors. Pricing is steady for the business and firms are more and more investing for progress by way of increasing its expertise base of expert expertise, constructing merchandise and platforms or acquisitions.
How do you suppose elevated hiring and rising attrition charges are impacting the margins?
We proceed to be a internet hirer and count on hiring to proceed at an analogous fast tempo. As per our CEO Pulse survey carried out in Could 2021, practically 90 per cent of tech firms within the nation wish to increase their workforce in 2021. The highest firms alone are planning so as to add a couple of lakh individuals this yr. Additionally, the yr 2020 witnessed decrease hiring as a result of pandemic and business bench utilisation is at an all-time excessive.
The mixed elements of excessive demand and muted 2020 is resulting in elevated attrition within the quick time period, much like previous progress cycles. The business is concentrated on increasing the availability of expertise and is doing this by way of a number of methods – extra more energizing hiring, upskilling at velocity and scale, alternate expertise swimming pools – expertise from smaller cities and ladies that had exited the workforce and college partnerships and many others. The expertise pool growth will assist mitigate the attrition value problem.