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by aivijay 3224 days ago
I like the last one. True, Infosys like companies started as a service company and never expanded their business to develop out of the service sector which is bad. My observation is, all these service companies only focus on their profits and never reinvest to expand the business out of it, maybe developing a product to start with.
1 comments

Why do companies have to move out of service business? There are so many companies which would give complete product development to service companies because it is not in their domain of expertise.

Personally they should have improved upon the service business. All the present good frameworks etc does not need to be rewritten but has to applied in a better way.

Service companies developing products mostly happens for non critical line of business apps, and usually its just an extension to the apps already serviced by the company.

However, BigIT in India could have latched onto that work and move into core product development.

Two reasons they did not.

One, their cash cow is service and moving people into product development would hurt their bottomline.

Two, they failed to see the obvious growing threat of automation. This I think is their biggest failure.

When you see the threat to your core business, its your responsibility to plan for the future.