Indian IT/ITES industry has seen unparalleled growth since its inception and has been contributing substantially to India’s GDP as compared to other industries. This being a knowledge industry has been less affected by the economic downturn. The success story of the Indian IT industry propelled other countries to expand their business portfolio to move higher towards services offering to a wider geographic base. This forced the value proposition to shift from labor arbitrage to innovation, non-linear business models and transformational business needs. Hence it has put tremendous pressure on the companies to change the traditional business model for sustaining future growth. The emergence of disruptive technologies, talent scarcity and cutthroat competition are the major forces acting on the organizations, impelling them to evolve from traditional linear business model to nonlinear business model. Clearly, the Indian IT companies need to think from the strategy perspective to garner the customer value chain to gain sustainable competitive advantage. This study will help the Indian IT companies to cope with the dynamic environment and deal successfully with rivals and challenges that stand as hurdles and obstacles to their growth.

Information Technology (IT) being a knowledge-based industry and often known as knowledge economy has grown tremendously since the early 1990s and has the potential to become the key driver for the accelerated growth amongst all the sectors and to contribute substantially to GDP, employment and exports. It has also forced many IT firms to concentrate on optimal utilization of resources, productivity and efficiency in terms of both human and hardware resources. The upcoming trends of disruptive technologies like cloud computing and sustainability and Green-IT have the capability to change the equations. The value proposition has also shifted from labor arbitrage to innovation, skill variety, transformational objectives and non-linear growth models. The success of India in the IT sector has also propelled the low-cost economies, enabling the big players to add offerings and move higher towards service offerings, catering to a wide geographic base. More and more people are using the best of the technologies and the consumption patterns are also shifting from US and UK to India, China and Latin America (PricewaterhouseCoopers, Indian IT/ITES Industry – Evolving Business Models for Sustained Growth, 2010).

Business Strategy, Indian IT/ITES industry, Information Technology (IT), Indian IT/ITES Industry, Evolving Business Models, Strategic Opportunities, Indian IT Companies.