Preparing for consolidation of the IT industry

The Indian IT industry market, just like the global IT market is full of start ups- brilliant minds, entrepreneurs, fast buck seekers, frustrated IT professionals fed up with routine tasks etc etc. Many of them fail, others give up unable to take the pressure of building a company, some continue and overleverage themselves getting into severe debt, a few succeed and build an Infosys.

In the hugely competitive IT industry opportunity and technology growth is being matched by numbers of entrepreneurs. In such a scenario, the big will eat the small fish and the law of jungle will prevail.

As India develops and more opportunities for better employment and business become available in diverse sectors the fittest will survive. Consolidation is inevitable. Some of this will happen naturally often the big guys will force this to happen through poaching of the best in a company, outcompetiting the smaller companies with niche technologies and using their brand as a sledge hammer to secure business.

Survival will require companies:

To build durable assets
To focus on sectors and technologies
Resist over leverage pressures
Hold onto quality manpower by adopting people friending practices