Developments in Europe seem to be having a negative impact on the export of IT services from India. However, there is more opportunity than potential business loss for IT and Business Process Management (BPM) companies after Brexit and the Greek meltdown.
Until recently, UK and EU together offered a homogeneous market for Indian companies in software and BPM services. However, moving forward, this market will present new challenges. Both, UK and EU will have diverse consumer demands, government policies, immigration laws and infrastructure requirements, forcing companies to re-strategize and realign their services to new realities.
As technology is changing rapidly, the European region is getting ready to take advantage through better public services made possible through digital transformation. These will be key factors for Indian IT companies consider to be accepted in the region. Besides that, Scandinavian governments are increasingly proving that EU will be a separate, rich source of revenue for Indian IT services apart from UK.
What Brexit means for business leaders
Earlier, while implementing projects for non-UK clients, Indian companies usually functioned with their headquarters in London. However, with UK and EU now becoming separate entities, Indian companies have to manage immigration and services based on separate regulations. Consequently Indian IT companies might have to revamp their set ups in Europe and UK for better customer support.
On the other hand IT companies need to transform in other ways too. IT services need to adapt to disruptive technologies that are multiplying and respond with innovative solutions for industries. Preparedness to address new demands that require out-of-the-box approaches is the need of the hour.
Changes that are imminent
As markets grow diverse, Indian technology companies have to understand how they can add value in the larger context. In multiple regions including India, emerging markets are set to adopt a fresh mix of capabilities, such as 5G, robotic voice automation, smart healthcare, driverless cars and more.
Advertising, customer service and inter-organizational functions will become digitally interconnected to improve productivity. Thus, Indian IT services will have multiple opportunities in the region. Over the next decade, Brexit might offer Indian companies a mixed bag, to which an early-response strategy should prove useful.
General Data Protection Regulation (GDPR) will affect enterprises with regard to data-security norms. In EU, companies will be looking for expertise to upgrade cyber security to a new level. In countries like Greece, GDPR can lead to better efficiencies, on a large scale, through disruptive technology in industrial and consumer segments.
How Indian IT can tap new opportunities
Revamping industrial methods and protecting data in a digitally progressive world are obvious priorities. Indian IT/ITES will find impetus through policy-driven development to meet the standards of new markets. Besides policy, technology tie-ups such as FDI from Netherlands should energize Indian start-ups to foray into Europe.