IT Companies: Quest for Sustainability

The IT Buzz has been with us since early 90s, with every IPO getting over-subscribed by many times, venture capitals been investing left right & center, investment bankers coming up with outrageous valuations. In short everything seemed too good till the time, the so called “bubble” had burst, which resulted in severe market depression

Since then, the IT Industry, no doubt, has struggled bravely, it has been evolving to gain firm footing, eventhough, everyday is a new challenge, smaller companies going bankrupt against the tidal wave from the big boys, who have deep pockets to invest in R&D, leave alone bring new products and smarter technologies

Today, as we speak, we are being faced with 2 scenarious; one is the promising looking future outlook, as technology companies aim high, they have gained strong footing in countries like China, India, Pakistan where they are blessed with over 2 billion consumers – no wonder prices have come down like 9 pins – website companies have given open end applications, with built in hosting & email services, telecom giants are not going to sit back either, billions being spent in gaining bigger market shares, while the usage cost for consumers continue to drop

Having seen the above roller coaster ride situation, its only fair, that today’s IT and technology sector is looking to gain stability, so they dont remain completely dependant on market dynamics. With so much in terms of filtered data on our finger tips, why cant we see this scenario from a different perspective? why dont we say, this is an opportunity, we have all the data we need, readily available, so dont we start connecting these consumers directly to mainstream business! this route is not only safer, but offers a lot of sustainability while promising captive clientele. Having worked in such a situation, we would reach a stage where the platform becomes mechanical, one just needs to pump in new products every day

Lets also look at the picture from bankers, and investors perspective; we dont need to risk high capital injection everytime technology changes its face, risk is spread beautifully amongst millions of consumers, target audience should be low-middle income masses, so they remain motivated due to the “need” situation, less dependency on market forces, very strong sustainable business model, ensuring consistent capacity building, and gaining cumulative impact like never before, while ROI goes up as we would get short turnaround cycles, so even if we make 5% a trade, fully asset back, realistically assuming, we achieve 2 cycles a week, we are set to gain over 100% in return over investment – which means this could be a platform to develop asset backed hedging instruments. Lets build on this discussion, folks!