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February, 2002 TECH TRENDS |
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Beyond 'Indian Software' Indian IT companies need to build their own distinctive brands to move up the value chain. By Arundhati Mukherjee First-generation Indian software entrepreneurs successfully sold high-tech services from a country hitherto perceived as "low tech". It was not easy; every company working towards this in the 1970s and '80s has a tale to tell about the difficulty in getting the first few orders. Reference after reference was slowly accumulated until the industry worldwide acknowledged that we had a strong client list and, therefore, merited a "serious look". This eventually resulted in the widespread acknowledgement of "Indian software" as a brand. In those early days, it was essential to present a common face to convince the international community of India's strength in information technology, hence the "India" brand. But established IT companies no longer need the brand for their survival; it may at times even hamper their prospects in international markets. The growth in IT consultancy services and IT-enabled services, coupled with the country's hardware ambitions, is diffusing the value of the "Indian software" brand. India's significant advantage of cheap manpower is why the brand's main attribute is "cost-effective solutions". As a result Indian infotech vendors will be perceived as lower-end organisations. That's why it is so important for companies to create a distinct brand identity of their own, so that they can move up the value chain. What then is the road ahead for companies who want to be "in a different league", as TCS CEO S. Ramadorai puts it? To begin with, firms need to have a clear brand position that does not imbibe the diffused attributes of the entire industry. Building the brand Winners of the future will segment the market by predetermined parameters, for example, size, industry vertical, ownership, geography and growth pattern. Post this most strategic activity, the organisation will have to then align its offerings according to the demands of these segments and create a brand with attributes that are relevant to these segments. Companies will need: Focused communication: To effectively communicate a unique set of brand attributes with customers in today's demanding markets requires discipline, focus and the right tools. The need for focused communication-integrating a variety of tools with a consistent message that should establish a dialogue with customers-has become critical throughout the life cycle of a business. Aggressive marketing: An important reason for lack of brand recognition is also weak front-end marketing presence in target countries. Unlike most multinationals, Indian companies have restricted their marketing and brand-building efforts in and from India, through long-distance brand building or building brands through the capital markets. Neither effort is focused intensely enough on the target segment. Strong corporate support: A planned marketing initiative-all tools used towards the same positioning message-is the order of the day. Above all, strong corporate support to such initiatives will be critical for success. However great the challenges in changing the mindset in our target markets, the greatest challenge remains within ourselves-to get out of this safe 'Indian software' umbrella and foray into another domain at a higher level. And yet this challenge is not so different from the ones that the first explorers so successfully navigated. Arundhati Mukherjee, Manager, Corporate Marketing, Computer Associates India |
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