After decades of low-margin work like server maintenance, India’s information technology services firms are moving upscale in search of lucrative contracts for driverless cars and other advanced projects as online innovation changes clients’ needs.
Companies from Tata Consultancy Services Ltd (TCS.NS) to Wipro Ltd (WIPR.NS) are all joining Infosys Ltd (INFY.NS) in investing in new, high-end technology, industry watchers say. Earlier this week Infosys bought U.S. automation specialist Panaya Inc for $200 million.
Triggering change is a wave of invention allowing machines to talk to each other online, dubbed ‘the Internet of things‘. Customers are ramping up: from about 5 percent now, strategy advisor Offshore Insights estimates automation and artificial intelligence work will grow to 25 to 30 percent of an IT outsourcing market seen by the national industry association as worth $300 billion by 2020.
“We’re in the midst of a new wave of software, and IT services companies really don’t have a choice,” said R. Ray Wang, principal analyst and founder of Silicon Valley-based Constellation Research.
via Indian IT firms eye robotics, driverless cars for next round of growth | Reuters.
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