The Indian IT services Industry has had a profound impact on the Indian economy, percolating down to the lower echelons of the Indian society and influencing the life of the common man. From the disproportionate increase in real estate prices to the continuously increasing workforce affected by the bad ergonomics to the huge demand for software engineers in the matrimonial market, the Indian IT industry has profoundly altered the country’s social and economic pattern.

The avalanche effect of the recent recession had spared none, but we are on the road to recovery, say the experts. Higher sales forecast by an industry leader seem to be signaling the resurgence of the $60 billion Indian outsourcing sector. Companies have resumed hiring and are giving hikes and perks to retain skilled resources. The recession also forced many from the younger generation to consider entrepreneurship, leading to mushrooming of startups. In spite of president Obama’s policies, U.S. companies continue to offshore IT, ITES services.

The Rise of the SMBs Worldwide
For companies that want to reduce costs, outsourcing seems to be the best alternative. In fact, it is expected that the small and medium sized businesses will be forced to find a way to collaborate and work with domestic IT services companies with offshore ties. So far it was only the IT biggies who were hogging the limelight by signing multi -million dollar, multi-year deals. But the future will see the smaller, eager, and agile companies bagging significant overseas contracts. SMBs in the US and Europe are looking to outsource, and want to work with SMBs in the Indian IT sector who can give them the time and attention that cannot be expected from the IT behemoths.
This isn’t a mere prediction as more and more mid-sized Indian IT companies are inking deals with clients from U.S. and Europe. So the next phase of growth in the Indian IT market will not just see the growth of the Goliaths, but will witness the emergence of a new generation of Davids. This breed of SMBs will have the technical competence and agility to meet the needs of another SMB and provide the required attention, solution, and cost effectiveness.

Bucking the Trend - Domestic SMBs
Another new trend that is emerging is that much of the growth will be fueled by demand from the Indian small and medium business (SMB) segment. Indian SMBs are expected to emerge as a significant opportunity. This is an indication that building enterprise IT infrastructures and applications, networking, and communication have become key priorities for India Inc. The NASSCOM-Zinnov study anticipates that, in line with Indian companies’ increased technology spending, revenue from the domestic market will grow to $4 billion to $5 billion by 2015. SMBs’ requirements and buying patterns have flung open a door for domestic providers. Working closely with Indian SMB customers will also help Indian companies make their products both ‘enterprise-ready’ and suitable for other markets, especially emerging markets.