TO STAKEHOLDERS
As the Chairperson of 3i Infotech, I take great pride in presenting the
remarkable journey of our organisation. Over the past three decades, we have ingrained the
principles of continuous learning and dedication to innovation into the very fabric of our
existence. Through collective efforts and determination, we have continually refined our
products and services, propelling ourselves to the forefront of technological
advancements.
Over the course of the past two years, our organisation has undergone a
remarkable transformation. We have achieved the status of a debt-free organisation with a
strong focus on our service portfolio. The first year of this journey was dedicated to
stabilising our operations, addressing the challenges encountered in the preceding year,
addressing legacy challenges, and resolving any remaining issues. During the following
year, we shifted our focus towards constructing the fundamental pillars for growth. This
involved translating strategies into actionable plans and optimising our services business
to be more agile, while customising it to meet the specific needs of our clients. Aligned
with this strategic optimisation, we are creating an agile and profitable operating model
by exiting non- profitable businesses and targeting small and medium-sized firms, thereby
driving higher margins.
To lead this operational and organisational transformation, our new
leadership team is driven by an innovative and collaborative spirit, propelling us toward
a promising future. With a clear vision, our team is confident and resolute in
spearheading the transformation and driving us towards a brighter technological tomorrow.
Our cutting-edge solutions are thoughtfully designed to drive progress and make a
meaningful difference for our customers.
As part of our commitment, we strive to become the preferred global
one-stop destination for our customers, catering to their diverse business needs in the
ever-evolving technological landscape.
Together, we envision a future where possibilities are limitless, and
our relentless pursuit of excellence continues to inspire us to move ahead.
Economic Resilience
The year 2022-23 presented multitude of challenges for the global
economy, including the Russia-Ukraine war, a slowdown in the European market, and an
energy crisis that led to supply chain disruptions and inflation. The International
Monetary Fund (IMF) projected a slower global growth rate of 3% in 2023 compared to 3.6%
in 2022.
The Information Technology (IT) market was not immune to the widespread
disruption over the past few years; however, the sector's foundation remains strong.
The prevalence of digitalisation continued to reshape various
industries, providing opportunities for long-term growth. The maturity of exponential
technologies like cloud computing, AI, IoT, and blockchain played a pivotal role in
driving the development of new products, services, and business models. Notably, the
sector experienced robust growth in 2022, and this momentum is anticipated to persist,
with a projected Compound Annual Growth Rate (CAGR) of 7.9% by the year 2027.
Despite global challenges, India has emerged as the fastest-growing
major economy, with a remarkable 7.2%
GDP growth in 2022-23. The country's technology sector has shown great
resilience, primarily fueled by consistent demand for IT services as global clients invest
in digital transformation. Companies are strategically focusing on high-value services
like cloud computing, AI, cybersecurity, and IoT to drive business growth.
Despite facing its share of hurdles, such as reduced funding for
late-stage startups and a more cautious approach to hiring due to concerns about the
global recession, the sector holds promising potential.
India's abundant talent pool, vast market opportunity, and government
support through initiatives like digital public infrastructure, coupled with the swift
pace of digital adoption across various industries, paint an optimistic outlook. Multiple
tailwinds persist that can propel the sector's strong growth trajectory forward.
Navigating the Technological Frontier
The IT sector's future appears bright, with favorable tailwinds
supporting its maturing sub-sectors. Notably, cloud computing is expected to experience
significant growth as enterprises accelerate their migration, enticed by advantages like
improved cost efficiency, scalability, and enhanced business agility. Artificial
intelligence adoption by enterprises is also expected to accelerate rapidly as AI
technologies become more mature and nuanced. Meanwhile, growth in areas like
cybersecurity, edge computing, blockchain, 5G implementations, IoT, big data analytics,
quantum computing, augmented reality, and robotic process automation indicates the
sector's overall strength.
Companies are eagerly embracing emerging technologies such as AI and
machine learning to revolutionise their processes, augment intricate decision-making, and
acquire predictive insights. Furthermore, the escalating concern over cyber threats will
sustain the demand for cybersecurity solutions, ensuring the protection of organisational
assets and data. The adoption of edge computing is also on the rise, enabling real-time
data processing and analytics at the source, thereby unlocking new capabilities.
Additionally, the potential of blockchain extends excitingly into various sectors,
including finance, supply chain, and healthcare.
However, the sector faces lingering challenges such as talent
shortages, market volatility, and inflation. Yet, its characteristic resilience persists.
By adopting strategic agility and maintaining a customer- centric approach, the sector can
surmount these challenges and seize emerging opportunities. Despite some uncertainties,
the IT sector stands ready to sustain its vital role in driving global digital
transformation and fostering business innovation.
Capitalising on Opportunities
In the face of these challenges and opportunities, 3i Infotech has
proactively seized every opportunity and implemented substantial measures to capitalise on
them. One such notable initiative involved establishing the holding company, Nure Media
Tech, which consolidates all our Nure products under a single entity.
This strategic decision empowers us to effectively leverage our
combined expertise and resources, particularly in cloud computing and cybersecurity, while
fully capitalizing on their growth potential. Furthermore, recognising the need to align
our statutory legal compliance structure with the evolving nature of our business, we
dedicated significant efforts this year to ensure that our subsidiaries seamlessly align
with our overall business strategy. Each subsidiary now focuses on specific areas, such as
professional services, enterprise services, business operations, next-generation services,
or product development. Consequently, we are equipped to deliver comprehensive services
encompassing state-of-the-art digital solutions and innovative offerings. These pivotal
steps mark significant milestones in our journey, underscoring our commitment to
adaptability and growth.
I sincerely thank all our stakeholders for trusting our vision as we
stand at the edge of a technology revolution. Your support powers our transformation into
a future-focused company. While challenges lie ahead, our agility, commitment to
customers, and team spirit equip us to seize fresh opportunities. I am excited about the
possibilities we can achieve by embracing innovation and propelling progress. The future
holds great promise for 3i Infotech, and I am eager to witness what we can accomplish
together.
Warm Regards,
Ashok Shah
Non-Executive Independent Chairperson