The evolving technology revolution in the manufacturing industry
India’s outsourcing story started with a moderate overview, but now, it is steadily becoming a powerhouse for quality work. Can this growth story shift from labour intensive work to more knowledge oriented tasks? To answer that question, one should look at India’s flexibility at integrating technology. With automation picking up in nearly every field, how much can India capitalise to improve its offerings? From what we’re seeing in the market, India has what it takes to roar ahead in its quest to rub shoulders with the big league. Manufacturing in India has a very interesting growth story and the success has been largely attributed to the use of information technology.
Wake up Indian entrepreneurs
Nearly a quarter of India’s GDP comes from the manufacturing sector. As part of India’s National Manufacturing Policy (NMP), the country is seeking to boost the sector’s growth in the next decade by ramping up its share in the gross domestic product (GDP) to 25% from the current 15-16%. Manufacturing is poised to hit the roof in India.
According to a study by global management consulting firm McKinsey and Company, India’s manufacturing industry could touch US$ 1 trillion by 2025. Up to 90 million domestic jobs could be generated by that time, with the sector producing about 25–30% of India’s GDP.
In the past, India has struggled with adopting technology in the daily functioning of manufacturing. This is steadily changing as businesses come to terms with the realities of the market. Disruptive companies are lurking around the corner, and though it might seem premature to focus on the impending doom, it is important to harness what IT can offer.
There are about a dozen Indian companies revolutionising social media, mobility, analytics and cloud computing (SMAC); so in theory India is not too far off on the disruption front either. It all depends on the scalability of offerings and the roadmap for a global vision.
The boom to the lull and now, the classy
Information Technology (IT) started with a boom in the 90’s. At this phase, IT was a skilled job, in the larger scheme of things. From the likes of Narayan Murthy and Azim Premji, the role of technology in India expanded. Since the time of the early pioneers, IT’s role has been redefined as a labour intensive offering. I say this because of the huge work load the industry has taken up and the kind of work being processed. This period saw India grappling with the contradiction of its erstwhile skill oriented tasks to the primitiveness of its current state’ India’s mini entrepreneurs are unearthing technology’s multi-faceted applications by using it as a jump-board to start businesses. These tiny disruptors are plenty and many and have grown in size, largely because of the solid groundwork provided by the early pioneers.
SMAC or SMACI (‘I’ being the Internet of Things) are going to be the next big differentiators. Each field will see some level of disruption in the coming years. If the mushrooming start-ups are any indication, this trend is continuing to grow exponentially. The early successes and implementations suggest that this is not a bubble in the making, but a fact that technology is taking over the world; easing processes and simplifying life.
Analytics – Big data has all the answers
The implementation of analytics can radically change any business. But to dissect the enormity of big data and see through the clutter is what makes analytics the billion dollar business. According to Gartner, through 2015, 85% of the Fortune 500 organisations will be unable to exploit big data for competitive advantage. Reading through the troves of data and finding patterns is not an easy task. Analytics is a hot area and data scientists will have a lot of areas to explore.
Cloud – The Silver lining
Cloud computing is the sum process of effectively getting the individual components of social media, mobility and Analytics together. A lot has been spoken about the importance of Cloud and the disruption it is going to bring about. Venture Capitalist Fred Wilson, one of the top technology investors and co-founder of Union Square Ventures, recently said that Apple would cease to be the most important technology company in the world by 2020. He said that the company will not feature even in the top 3 companies in the world. That is because Apple is “too rooted to hardware,” and is not focused on the most important tool of all–the cloud. We are talking about the biggest technology company in the world, not figuring in the top 3 places in less than 6 years.
India has the necessary environment to grow, it merely needs its visionary entrepreneurs to stand up and carry the baton. The government has played its part and will continue to ramp up efforts. Now it is up to the tiny disruptors to play their part.
About Author:
Alok Sinha, President & Head, Global Applications & Engineering Services, Country Manager-India, Xchanging
