In search of new opportunities

Author explains why buyback offers would not compromise long-term business objective of these firms

Experts believe that the recent developments in the US have provided an opportunity to the Indian firms to revisit their strategy and tweak their model away from labour-intensive low-margin business. These firms have to explore opportunities in the area of artificial intelligence, machine learning and cognitive analytics much of which are outside the present domain of these entities. Indian firms need to adopt the “acquisition” route to quickly get into these new areas of high-margin business.

Inorganic growth requires availability of cash reserve. The leading software firms (table) have already distributed more than US $9 billion in the past three years