The new timeline is – BC( Before Corona) and AC ( After Corona) says Achyuta Ghosh, Head, Research NASSCOM
Blog: NASSCOM Official Blog
Here are 7 key things that I learnt from the session by Mr. Achyuta Ghosh on “Can COVID-19 accelerate the enterprise digital transformation?” on 7th May 2020.
- COVID19- Once in a lifetime event
Years down the line, when we will look back to this decade, we’ll remember it as the era of COVID-19. It has been over 4 months since the epidemic started to spread, and still, 80% of the world remains under lockdown, 4.5 million people have contracted the disease, and over 300,000 have died due to it. It has been an economic disaster of unhead proportions too- millions have lost jobs, world GDP is expected to significantly contract his year, consumer and enterprise economics is severely impacted. This is especially critical as the world, and Indian tech industry in particular, is coming off a great decade.
Mr. Ghosh quoted a statement apt at this point of our lives said by Thomas L. Friedman “We have a new history timeline- BC (before corona) and AC (after corona).
- COVID19 is creating new megatrends, and possibly a new world order
Earlier this year, NASSCOM Research highlighted key megatrends for the new decade- called ‘Techade’. The key trends identified were:
1) Rise of the data led the economy
2) Disrupted future of work
3) Environmental sustainability stress
4) Rise of Asia as an economic powerhouse
5) Mass urbanization and hyper-personalization
Post-COVID, there are new megatrends on the horizon-
1) Geopolitics is expected to increase, which can lead to trade wars, de-globalization and supply chain disruptions
2) The government will emerge as a big consumer of technology
3) Healthcare will become the prime focus area for citizens, corporates and countries
4) Competition between technology players will increase
5) The stay at home economy will emerge
These new megatrends will significantly shape the world going forward.
- Tech spending disruption in the short term
Research firms like Forrester and IDC expect global tech spending to reduce in 2020, as organizations struggle to cope with the sudden shift in market realities and drop in consumer confidence. Within overall tech spend, it is expected that the maximum impact will be felt on hardware and discretionary technology consulting services area. Software services and tech outsourcing will be relatively less impacted. In fact, the software is expected to lead the recovery in tech spending in 2021. Further, different industry verticals will be affected in different manners- tech spending is likely to reduce higher in sectors such as retail, travel and hospitality, but no so much in government, healthcare and industrial.
- Long term technology spend to go up
Mr. Ghosh reiterated in the talk, that while COVID will create disruption in the short term, it will also make the world even more dependent on technology. As a result, many technology application areas as outlined below will see an increased interest and usage across the world.
- Lessons from the past- Crisis begets radical transformation
The 2009 global financial crisis led to the radical transformation of the Indian technology services industry. New business models, new growth markets, new services and new players emerged in that period, which now has become mainstays for the $191 Billion industry
- Indian technology players demonstrated resilience and agility in enabling remote work for ~90% employees
The 4.4 million-strong Indian technology workforce was largely office-based. When the COVID induced lockdown was announced, most industry players worked overtime to shift their employees to a work from home model. They set up secure communication systems, remote work tools and virtual delivery of services in a short time, ensuring their clients’ project delivery continued seamlessly without loss of productivity.
- The road ahead for Indian technology industry requires massive customer-centricity
6 key imperatives for the Indian technology industry to survive and thrive post-COVID. They need to get closer to their clients by proactively solving their problems. Pricing will be under pressure, and they need to consider all levers to retain customers. Recent Nasscom surveys show that some customers are still open to large digital transformation deals. So tech players will have to look at expanding their offerings, in addition to setting best in class BCP practices. Companies will also need to continuously look for acquisitions, partnerships and talent as they plan for the future. Companies will need to co-innovate with their clients and get ready for the new normal which will be uncertain, demand agility, good governance and capabilities around emerging tech solutions.
Attending such sessions increases one’s knowledge repertoire. I thank Mr. Ghosh for such an enriching session on today’s COVID-19 world and how it has changed us at the same time us the opportunity gives us different perspective to look at the situation.
Mr. Ghosh’s vision can be seen in alignment with Mr. Satya Nadella’s vision of how in 2-3 months, COVID-19 has to lead to digital transformation that would have taken place in 2-3 years if COVID hadn’t occurred.
About the author:-
Kirti Kumar is a budding HR professional currently pursuing PGDM in HR and Marketing at New Delhi Institue of Management. She looks forward to opportunities that can hone her skills. She is agile in her attitude with versatility in her action
The post The new timeline is – BC( Before Corona) and AC ( After Corona) says Achyuta Ghosh, Head, Research NASSCOM appeared first on NASSCOM Community |The Official Community of Indian IT Industry.
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