1. Moving up the value chain. Most tier 1 companies have already realised this and have started to enter into turnkey projects. It is difficult to make money of these projects in the initial years and the margins are a bit stiff but this is a consistent and a stable stream of revenue and the margins on such projects can increase considreably over time by more and more automation and better processes.
2.Training IT service companies need to spend a lot more on training. The traning budget for these companies should be equivalent if not more to amount of money deployed by the Oil and Gas companies to find additional reserves or by the product companies as their R&D. This would provide for additional help in controlling attritions in boom time.
3.Cost Cutting The services companies should invest in the lower tier cities to reduce the cost of providing these services and also be in a position to bid for the lower end services. This would also allow the services companies to get projects from the medium size business instead of the large corporations.
4.Diversify revenues and production Much has been said about making attempts to diversify. There has been an attempt to diversify the production from different countries in an attempt to effectively have a near shoring capability. But having said that the revenue stream is not quite diversified and a lot of offshoring is being done only from developed countries. I would think that the need of the hour with future
