Here is an interesting note that i found in the interview of HCL's Shiv Nadar on the IT Services industry

"Consider the mental baggage that IT companies have today. Each quarter, Indian IT firms publish their results, and these are broadcast on CNBC. From the comfort of their boardrooms, executives say how many new employees have been added, how many more Fortune 500 companies have been signed up as clients, how many million-dollar companies were added, and so on. Now, if you go on like this year after year, where will it end? Are we trying to become companies that produce as many jobs as the railways? [Editor's note: The indian railways employ some 1.5 million people.] It's just endless. The problem with such thinking is that it doesn't recognize that this activity merely reflects the migration of work from one country to another. You could put a football in a room and shoot it, it'll hit the wall somewhere, and if one side is Cognizant, another side is HCL, a third side is Infosys, whoever gets the ball will claim, "I scored a goal." Isn't that what it is? This is too simplistic a way of doing business, and it will not survive. You have to have predictability in business, and it's not the simplest thing in the world. Beyond a certain point, the scalability of people will give way. Then some contracting form or something else will come about. Transformation is beckoning, and it is right around the corner.

at HCL we want to reduce the number of our customers. We have 500, which is far too many for a company of our size. We need to bring that down
by 200 over the next couple of years. This thinking is the reverse of the way many companies operate. But I believe we have to make a meaningful contribution to our customers. If we don't, we'll just be a project company. We could drop off the table and it would make no difference to the customers' lives; they would just continue to run as if nothing had changed.

Source: 1

Prashanth Rai