'IT start-ups should focus on niche areas, small verticals'

The way to succeed for any new start-up company in the IT services field is to focus on niche areas or small verticals and doing some unusual things, a top IT industry official said.

New start-ups have to demonstrate that the idea which they are bringing to the table are not ideas which the big companies are doing, IT major Infosys's Chief Mentor, N R Narayana Murthy, told reporters here today.

The niche sectors could be retail, SMEs or providing mobile solutions, he said.

The new ideas have to be much more specialised, Murthy said.

On his own venture capital fund, he said that "we are in touch with many companies and by March 15, 2010, we will be more active."

"We are evaluating the companies which are approaching us, their ideas, scalability of business, leadership of entrepreneurs, etc," Murthy said.