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Past Issue • Jan-Mar 2010

Lessons for the IT Services Sector

Human capital is the key ingredient that drives the IT services industry. Despite the double-digit growth number, the revenue growth model of IT services firms, historically based on scaling of firm size, is unsustainable in the long run. Given the increasing salaries and living costs in the “IT cities” of India, it is important for firms to find ways to improve revenues. One way is to enhance the productivity of employees rather than depending only on scale. All major IT services firms invest substantially in employee training. However, the extent of these investments should ideally depend on the returns available. Unfortunately, there is little information available for companies to act on.

ABOUT THE AUTHORS

  • Amit-mehra

    Amit Mehra

    Associate Professor of Information Systems and ISB Research Fellow and also the Joint Executive Director, SRITNE at the ISB.
  • NISHTHA-LANGER

    Nishtha Langer

    Assistant Professors of Information Systems at the ISB.
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