Today we have seen Infosys' quarterly results with a flat performance at Rs 2407 crore. While the results have lent an impact on the stock market uplifting the mood as the company has improved the guidance for future growth, in Data Driver's opinion the market should not weigh too much on Infosys' performance. We believe that the company does not represent the interests of the Indian IT. The IT market in India in the last 2 years has seen a lot of changes. From purely a service-based market, the market has seen early signs of product-development locally.
While IT services constitute more than 80% even today for Indian IT, there is a hope that products will be a critical part of the ecosystem in the future. A number of startups are working in this direction and are in the spotlight with their innovative approaches. If you're observing this as a threat to Infosys, HCL Tech, Wipro, Tech Mahindra, and others, it is too early and not true. The reason is the market is expanding in India and many technologies and business models will co-exist in the market. iSpirit, a new association of product companies in India, sowed the seeds for future growth of the Indian market.
This is the reason we don't see much excitement in Infosys results. The reshuffle that was taking place in the market post the recession in 2008 has helped the market to be more liberal towards other streams of IT. A number of startup programs and incubators emerged in the country. The cloud model has sparked a ray of hope for innovators in the country, thought it is too early to bet on this.
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