Friday, July 21, 2017

Big G's move in India: Google IT Consulting in India to compete against IT giants like TCS, Infosys

There is interesting news about the move by Google IT Consulting to expand its practice in India.
Reports claim that Google IT consultancy for large businesses will head for a new revenue source in India.  Mohit Pande, Country Head – India, Google Cloud was quoted by BusinessLine saying,
“We have invested significantly into professional services in India. These are consulting services, change management services for the customers where we work with them to solve some of their most complex problems.”
“India assumes a lot of significance for us. It is a large market where public cloud is set for huge amount of growth. I also think because of the environment in India where internet services are getting better, data are getting cheaper,” Pande said.
Given the growing importance of India, Google may also set up an Advanced Solutions Lab in India, which so far is only in Mountain View, California, Pande indicated. The lab will be an extension to Google’s Professional services in the country.
Image result for google consulting

Google's parent Alphabet is worth almost half-a-trillion dollars, and the firm also generated $900 million revenue in India last year. The company has invested over $30 billion on its cloud platform in the last three years globally. This includes investments in setting up cloud data centers across the globe, one of which is scheduled to come up in India.
Google is now investing heavily in India for its cloud offerings, in particular its public cloud offering termed Google Cloud Platform wherein companies can rent compute and storage capacity from Google.  Google will offer consulting in machine learning and Artificial Intelligence to large enterprise customers. 

Small step for Google, Giant leap for offshoring IT Services

This move by big-G could pit the big-tech company against offshoring giants like TCS, Infosys, Wipro and also against multinationals like IBM and Accenture. These software services companies have been struggling to evolve business models to address the risks from visa restrictions and protectionism in the west and also need to quickly re-skill their folks on newer technologies. (Ref - my blog on reskilling).

Indian software services companies are under tremendous pressure to continue to show growth in a slowing global market that is also experiencing increased protectionism in the west. Old linear growth model of hiring more ‘freshers’ and taking larger application development and maintenance contracts has reached a plateau. CEOs and boards of Services companies are hard pressed to explain newer game-plans to their shareholders. Slowdown has and the haphazard layoffs (link my blog) also adversely impacted the morale in the Indian IT sector.

Bottomline: Software services companies have grown large 'cloud service practices' with System Integration offerings around Amazon's AWS, Microsoft's Azure and also Google Cloud and other platforms. Wonder if these offerings will take a hit when Google expands the services business. 

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