InvestorQ : Do you agree that IT stocks have adjusted very well to changing conditions in last 25 years?
Rutuja Nigam made post

Do you agree that IT stocks have adjusted very well to changing conditions in last 25 years?

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2 weeks ago
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I would actually go a step further and say that IT companies in India have been successful in tapping emerging opportunities the best among all industries. Additionally, they have also been extremely flexible in adapting to changing needs of the market.

For example, in the mid-90s, we sat that in ERP implementation. Then came the turn of the century, Y2K opportunity in 1999. Post Y2K, Indian IT companies have focused more on solutions and owning the customer than on just outsourcing. Most recently, they have been first off the block on tapping the big digital opportunity in the global business.

If they were opportunistic, they were also adaptable. Post 2000, when tax breaks were withdrawn, IT companies focused entirely on top-line growth. When visa regulations became in issue, IT companies again adapted by shifting from on-site to offshoring model. The quickest adaptation was digital, with cloud, AI and analytics now over 40% of sales.

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