Complacency Leading to Reduced Competitive Intensity in the Indian Information Technology Services Sector Resulting in Diminished Market Opportunity

Abstract

Indian Information Technology (IT) services sector today commands a huge share of worldwide IT sourcing spend. India stays to be a driving force for worldwide sourcing growth despite rising de-globalization moves across Western economies, challenges posed by East European nations, Russia, China and East Asia. A pertinent question that comes up is how will India take on the rivalry, while the Indian IT services sector seems to be content and complacent. One can see that the hunger for growth which we saw in the late 1990s and the decade of 2000s is fast eroding. India’s incentive to the world market was its economies of scale and cost advantage; however, the disruption created by the extant outsourcing or offshoring business model is fast receding. The Indian IT Services players turned complacent while competing as disruption and differentiation gave them a unique advantage and value proposition. This article builds on various articles in this domain while analysing how complacency affects competitive intensity, in turn resulting in a reduced intensity in market growth opportunity. This article endeavours to evaluate whether Indian IT services sector is trapped in its self-projected image leading to Narcissus effect.