Dear Editor of Economic Times:
This has reference to the above mentioned article by Romita Majumdar featured in today’s edition of Economic Times.
The author’s contention “The Indian IT industry earns around 40% of its revenue from BFSI solutions” is wrong and needs nuance.
Actually, the industry earns 40% of its revenue from the BFSI industry, not BFSI solutions. The revenue comes not only from core banking, remittance and other BFSI solutions but also from HR, CRM, and other non-BFSI solutions.
This point became clear when I worked at a company that was dedicated to serving banks and insurance companies. Like the author of this article, most employees of the company equated BFSI industry with BFSI solutions. To highlight the true Total Addressable Market of the company, the CEO told employees at an annual gathering, “We will not sell credit card systems to an airline but we’re open to selling monitor-cleaning service to banks”.
Not that the company got into housekeeping services but exaggerating the truth did make it crystal clear that there was a big difference between BFSI industry and BFSI solutions.
Thanks and Regards.
KETHARAMAN SWAMINATHAN
Pune, INDIA