Evolving Business Models in the Indian IT ITES Sector

According to CRISIL, the COVID-19 pandemic caused the Indian economy to contract by 5% in 2020, with MSMEs (micro, small and medium enterprises) bearing the brunt of the nancial crisis. However, disruptive events like the pandemic are also opportunities in disguise. Spotting the right one and innovating quickly to gain the rst-mover advantage can favor the MSMEs.

Take the case of Workshaala, a Bengaluru-based co-working space. In the pandemic, the company realized that people lacked the infrastructure to make remote work comfortable and productive. As a result, the company quickly pivoted to launch an initiative called Homescape, which provided work-from-home equipment to B2B and B2C enterprises using a subscription model. After tapping into local supply chains and witnessing some success, it plans on expanding to other cities across India.

Workshaala’s move demonstrates how identifying the right opportunities to differentiate, build sustainability, adapt to changing consumer behavior, and adjust the business ecosystem can be the key to weathering crises and economic downturns.

However, spotting the right opportunity and innovating quickly is just one part of the equation. Equally important is to pick the right business model for building a sustainable, resilient business. Let’s explore some of the most promising business models that will emerge in the post-pandemic era and how the Indian IT/ITeS sector can adapt its existing models to thrive.