Xerox has many admirers. The American company trans-formed the computer industry with its Palo Alto Research Centre, better known as PARC. But, few want to be its photocopy. The multinational, bogged down by its daily operations, failed to see the potential of the first personal computer with a graphical user interface and mouse, connected to the Ethernet. It had dibs on the personal computing space and internet boom, basically on El Dorado, and blew it. Clearly, no company wants that to be part of their history.
Analysts say that the parent has smartly moved the risk to Wipro Ventures, and the reason is their size. “Large companies, especially publicly listed ones, don’t have much leeway in terms of making very risky moves internally. So they hive off the risk to an external third party, where the pace of innovation is going to be faster,” says Sanchit Vir Gogia, founder, Greyhound Research.
And, analysts add that Indian IT players are also losing their biggest advantage — labour arbitrage. Automation (or bots) is taking away a lot of processes. “The writing on the wall is that labour arbitrage alone will not get you dollars anymore. When you go in and have a conversation, it is expected that you already have competencies in blockchain, IoT and automation,” says Gogia.
“The evolution of B2B SaaS companies in India has been slower. Typically, a lot of start-ups happen around the B2C arena. India continues to do that but over the past couple of years the focus on enterprise SaaS has been very, very high,” says Gogia.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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