And now you have Reliance Tech Also..
After the recent victory dance of Rupee against Dollar, few would have thought that IT services company's days are far from over. But wait, Reliance (R-ADAG) have recently announced their foray into IT services with their Tech Arm Reliance Tech (Link Here). No wonder, IT has still a lot left in it otherwise a shrewd business empire like Reliance, would have never thought of entering the arena.
I am not very amazed with their entry into IT services because it coincides with the fact that other big players are also changing their focus to Indian market. Given Reliance's experience in playing around with Indian conditions (recall that conversation between Guru Bhai and a Rajiv Gandhi look alike in the movie Guru) it's no surprise what they are up to. Just recently two big organizations namely Indian Railways and State Bank of India have announced their IT ambitions. With politicians like Lalu Prasad Yadav at the helm of affairs it's no surprise that Reliance's experience can come handy. The telecommunication vertical is also heating up as Bharti and Idea have announced their IT budget which is in the range of 700 mn$ - 1 bn+. The market looks really lucrative as R-Adag brings their domain expertise and they already have demonstrated their capability in the telecommunication software area.
Well, they may be a little late in joining the band wagon but the party is far from over. The IT space has yet not matured in India, in-fact it's just picking up. What was earlier considered as a non profit (low billing) area is fast becoming a natural hedge against depreciating Dollar. Reliance's entry just gives a hint of that. What else, it has deep pockets, manpower and momentum and they can always poach the best (whatever it takes) from the best. It's so easy to start a company these days. You just need to have the appetite and of-course the money power to support it. Rest, you can always acquire from others.
I am not very amazed with their entry into IT services because it coincides with the fact that other big players are also changing their focus to Indian market. Given Reliance's experience in playing around with Indian conditions (recall that conversation between Guru Bhai and a Rajiv Gandhi look alike in the movie Guru) it's no surprise what they are up to. Just recently two big organizations namely Indian Railways and State Bank of India have announced their IT ambitions. With politicians like Lalu Prasad Yadav at the helm of affairs it's no surprise that Reliance's experience can come handy. The telecommunication vertical is also heating up as Bharti and Idea have announced their IT budget which is in the range of 700 mn$ - 1 bn+. The market looks really lucrative as R-Adag brings their domain expertise and they already have demonstrated their capability in the telecommunication software area.
Well, they may be a little late in joining the band wagon but the party is far from over. The IT space has yet not matured in India, in-fact it's just picking up. What was earlier considered as a non profit (low billing) area is fast becoming a natural hedge against depreciating Dollar. Reliance's entry just gives a hint of that. What else, it has deep pockets, manpower and momentum and they can always poach the best (whatever it takes) from the best. It's so easy to start a company these days. You just need to have the appetite and of-course the money power to support it. Rest, you can always acquire from others.
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