The startup boom in the country is propelling a parallel IT services industry. While established technology companies such as Infosys and Tata Consultancy Services largely cater to overseas customers, upcoming firms are focusing on India, quenching the domestic demand for mobile-era solutions.
“The requirements from startups are very dynamic and fluid, something that large firms are not comfortable with, as the foreseeability is missing,” said Sanchit Vir Gogia, CEO of Greyhound Research, an IT and telecom research and advisory firm.
Also, projects from startup clients typically are worth a couple of thousand rupees to a few lakh rupees, according to startups ET spoke with. Large Indian IT firms do not usually take up projects that do not yield them $3-5 million in revenue over a period of three years, said Gogia, adding these firms would likely enter the game when leaders in the telecom and banking, financial services and insurance segments start adopting a mobile-first technology.
Source: Economic Times