Reinventing rules of business key to IT firms' valuation

Seeking Their Oracle Moment

- AVIK DAS

The writing on the wall is clear. Indian information-technology (IT) companies need to adopt a new playbook if they want to have their Nvidia or Oracle moment — an eye-popping surge in stock prices that catapults companies into another league from where there is no looking back.

"Indian IT firms could learn that shareholder value comes from sustained innovation and market leadership, not just preserving margins," Phil Fersht, founder and chief executive officer, HfS Research, told Business Standard.

The criticism of the Indian IT services companies has been increasing as artificial intelligence (AI) rewrites the rules of business. Analysts and industry experts have highlighted the need to invest more in research & development (R&D) and build more AI-native applications.