New Delhi, April 18 (PTI) Zoho’s Sridhar Vembu was surprised by the future of the software and IT services sector in India, believing that the industry is facing a basic estimate, not just the challenge of AI, but can reshape the structural shifts over the next few decades.
Vembu argues in an article on X that the inefficiency of products and services has long plagued the global software industry.
“My business paper: What we’re seeing is not only a cyclical downturn, but not just AI. There’s trouble even without the uncertainty caused by tariffs.
“In terms of products and services, the wider software industry is inefficient. These inefficient asset bubbles have accumulated over decades,” Vembu wrote.
He noted that as a major exporter of software and IT services, India has adapted and even relied on these inefficiencies, with millions of jobs associated with the industry’s continued expansion.
“Sadly, we adapt to many of the inefficiencies in India. Our work depends on them. For example, the IT industry attracts talent that may enter manufacturing or infrastructure (for example),” he said.
Vembu’s comments have attracted increasing attention to the future of the software industry, as AI and automation have the potential to disrupt traditional business models.
Analysts say AI-powered software can make development more efficient, reducing the demand for large teams and potentially narrowing the economic impact of software companies, especially in countries like India, which have established economies around software exports.
While much of the current debate focuses on the impact of AI and trade uncertainty (such as tariffs affecting global technology supply chains), Vembu believes that this is only part of the story. Even without these disruptions, he believes that the accumulated inefficiency will cause trouble in the industry.
“We are only in the early stages of long estimates. The past 30 years are not a good guide for the next 30 years. We are indeed at a turning point.” Vembu warned that industry leaders are urging to challenge their assumptions and rethink future strategies.
