May 2006 Edition

Somebody asked, what is the right season for IT business in India? Spontaneously, I answered “the festive season””––that is, the OND quarter. But, in reality, every season and situation has its unique advantages. The point is how you are showcasing the right value. For example, those vendors who are in the UPS and inverter business must be wallowing in happiness as their turnover will be soaring very high this summer alongside mercury. Because of the erratic supply of electricity, prices of their products have gone up sky-high. There has been a 25–30-per cent hike in the prices of batteries alone. Still, consumers are buying power management systems to ward off the onslaught of scorching summer. On top of it, channel partners, who provide after-sales service, are also the major beneficiaries. 

 

There is always a statement. India is a low-cost market. It might be true to some extent, but the truth is otherwise. Vendors who are operating in this market are all out to make the most of this godsend opportunity. 75 per cent of our population lives in the villages. E-Governance is catching up aggressively in most of the states. Now, the technology vendors and the government sectors are sharing the same platform to find out the right value proposition for rural India. Villagers own tractors for cultivation. Of course, it has value for them, but it costs not less than Rs.4–5 lakh. One should not be surprised when one sees air-conditioned houses in the villages. When the villagers can enjoy the luxury of air-conditioners, own luxury cars and send their children to elite schools, why cannot they take part in the IT Revolution. The cost is surely not a deterrent for them.

 

Let us forget rural India for the time being. We have yet to exploit the full potential of the cities where 25 per cent of the population lives.

 

 

Sanjay Mohapatra

Editor