Ukraine crisis offers Indian IT cos opportunities

The Ukraine crisis has intensified the ongoing debate on the neutrality of technology companies. From Alphabet (parent company of Google) to Adobe; Apple to Meta, and Intel to YouTube, many big technology firms have announced plans of leaving Russia in the wake of its invasion of Ukraine.

Without dwelling on the merits or demerits of such a move and the moral aspect attached to this whole issue, experts are predicting that a multipolar technology world will emerge post this crisis.

Most nations will reduce their dependency on global technology giants or at least create a hedging mechanism that will enable them to function without much disruption during such exigencies.

Therefore, the digital divide in terms of geographies is likely to emerge without the dominance of a single player, which is the case now. As a country, India will also see such development of domestic technology stacks. As a result, IT spending will be higher, favouring Indian technology companies including startups.

“Earlier, critical assets for any nation used to be power projects, airports, dams, banks, airlines, and government installations among others. In the 21st century, nations have realised that digital assets are also part of these critical assets which need to be protected at any cost. This crisis has shown how technology can be denied at a time of conflict. So, the technology world will be multipolar with many players operating in consumer technology space after this crisis,” said Pareekh Jain, an engineering services expert and Founder of Pareekh Consulting.

“It’s not that nations like India have not developed their own technology stacks. But the intent was to tap new opportunities. After the Ukraine crisis, nations will have to develop indigenous technology stacks for managing risks,” he added.

Since the beginning of Russia-Ukraine conflict, more than 330 companies have either announced a plan to leave Russia or suspended operations. Global giants like Google, Apple, Meta, Adobe, Dell, DXC Technology, HP, IBM, Intel, SAP, Twitter, YouTube, and a host of other companies have decided to leave Russia.

When such a massive exodus of technology companies happens, it has the potential of crippling the whole system.

According to brand experts, who advise companies in various crises situation, neutrality is desirable. If technology firms take sides, then countries will develop their own technology stacks.

“Technology, like the air we breathe and the water we drink, belongs to all. Technology, therefore, must be neutral. It belongs to all and must bless all equally. It must not, therefore, take sides. If it does, it will tend to alienate one side or the other,” said Harish Bijoor, Brand Guru & Founder, Harish Bijoor Consults Inc.

“In a war-like situation, technology must offer itself to all. No taking sides! Taking sides would make technology partisan and a pariah! No point in doing that,” he added.

The neutrality of technology has been debated for quite some time now. Many countries including India have raised concerns and have come up with regulations to protect their national interests. But unlike China, which has developed its own companies in each aspect of consumer and enterprise technology, India lags far behind.

India has already embarked on a path of “Atmanirbhar Bharat’ initiative under which the country aims to create indigenous technology stacks in all fields of life. UPI (Universal Payment Interface), and RuPay are the classic examples of Indian efforts to be independent in the digital payment system. Similarly, ISRO (Indian Space Research Organisation) is considered a pioneer in space technology space.

“India has many reputed technology firms in the services space. What we are lacking is that we need good technology product companies. The Indian government is investing big in indigenous technology stacks. So, it will definitely give impetus to companies to innovate and develop new products,” said Ashis Dash, research analyst at brokerage firm Sharekhan by BNP Paribas.

“Also, we have a vibrant startup ecosystem. This puts the country in good stead to come up with technology solutions in critical areas like drone technology, mobile operating system, and many more”, he added.

The country has already created many alternatives to global technology giants, especially in the consumer technology space. However, India is still lacking in developing its own mobile operating system, internet, or niche defence technology applications to be self-reliant in the true sense.

Ukraine crisis has shown that exigency can happen in a nation’s life without giving notice. Therefore, those countries will prevail which are better prepared for managing such crises.

India with its huge engineering talent base, startup ecosystem, and government support is well-placed to write its own destiny in the world. And the path to achieving that status stems from technology leadership in this century.

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