IT industry very inefficient, despite huge growth: Chandrasekaran

Huge amount spent on development goes waste

PTI | August 16, 2010



Despite huge growth, the Information Technology industry is very inefficient as a huge amount spent on development goes waste, a top official of IT solutions provider Tata Consultancy Services said in Chennai, Saturday.

"The number of technologies hitting the market is countless and users are getting sophisticated. But an important aspect of the IT industry is that it is very inefficient. There is a huge opportunity to invest and increase efficiency in the IT industry," Tata Consultancy Services CEO and Managing Director N Chandrasekaran said.

"Though the IT industry spends about USD one trillion on technology,two-thirds of it,approximately USD 750 billion, is spent only to maintain what has already been built," he added.

Besides, companies spend the balance (USD 250 billion) on purchase of new technologies and related matters. But 60 per cent of this value goes waste as companies either cancel existing contracts or acquire other companies, he said at the convocation at the Loyola Institute of Business Administration.

To create a difference one must think big, which never happens in boardrooms so "think differently and eventually change the rules," he said.

Later, Chandrasekaran awarded students of the institute at the event.

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