• Service: Advisory
  • Industry: Technology
  • Type: Survey report
  • Date: 1/19/2012

Non-linear models - Driving the next phase of growth for the Indian IT Industry 

The IT-BPO industry has had its share of turbulent times; it has grappled with adverse protectionist policies, visa regulations, falling discretionary spends and slower scale of adoption in newer markets. Market conditions have become tougher due to heightened competition among vendors, emergence of other low-cost destinations and increasing maturity of clients now demanding more accountability. Domestic regulatory environment comprising of issues of taxation, transfer pricing and lax IP Protection laws are further adding to woes of the industry. But the most important challenge of all is perhaps the employee conundrum. At this critical juncture, firms need to look beyond the conventional linear growth models and turn to innovative non-linear forms of growth. KPMG has identified 7 emerging models increasingly being adopted by companies to accelerate their non-linear growth; they are discussed in the document alongside.