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Zoho's Vembu Warns of Fundamental Reckoning in India's Software Industry
Business Standard
|April 19, 2025
Zoho's Sridhar Vembu has sounded an alarm about the future of India's software and IT services sector, arguing that the industry is facing a fundamental reckoning—not just a cyclical downturn or a challenge from artificial intelligence, but a structural shift that will reshape the next several decades.
In a post on X, Vembu contended that inefficiencies in products and services have long plagued the global software industry.
"My operating thesis: what we are seeing is not just a cyclical downturn and it is not just AI related. Even without the uncertainty induced by tariffs, there was trouble ahead."
"The broader software industry has been quite inefficient, both in products and services. These inefficiencies have accumulated over decades of a prolonged asset bubble," Vembu, who stepped down as CEO in the IT firm in January to focus on R&D, wrote.
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