Tech moved My Cheese

This is the individual who transitioned from Computer Science to Mechanical Engineering. That's how my college friends introduce me to their family members. There's quite a tale behind the switch; I welcome any thoughts or reflections on my decision-making.

In 1991, the image of Rajiv Gandhi alongside a personal computer influenced my decision to choose the Computer Science (CS) branch at NIT Prayagraj (formerly MNREC Allahabad). It portrayed a power to shape the future.

Between 1989 and 1991, the Indian economy faced its most challenging period. The optimistic outlook on Rajiv Gandhi was shattered due to the Bofors scandal, tarnishing his progressive image. Subsequently, the era of VP Singh was marked by significant political instability, characterized by a lack of clear majority and frequent changes in prime ministers, with four PMs in just two years. Foreign reserves plummeted to alarming lows, and the government struggled to repay foreign debt. Rejected by both the IMF and World Bank for loans, the government resorted to pledging its gold reserves as a last resort for foreign exchange. With a near-zero growth rate (1.1%), a weak rupee, high inflation (15%), and plummeting economic sentiment, India's economic prospects were bleak on the global stage. At this juncture, Indian IT revenue stood at around 100 million USD.

NIT Prayagraj became the first college in India to introduce a bachelor’s degree program in computer in 1976, preceded all IITs, attributed to its association with the Nehru family. The computer science branch at NIT Prayagraj provided some of the most sought-after placements, predominantly in the private sector, with prominent recruiters like TCS, HCL, and Wipro. However, graduates from the computer science branch faced limitations in government employment opportunities, as the branch was excluded from UPSC examinations such as Civil Services and Engineer Services, with few options available in PSUs.

During my first year of engineering in 1991, on the Indian political front, the unfortunate assassination of Rajiv Gandhi occurred, leading to the formation of a Congress-led government under the leadership of PV Narsimha Rao. Dr. Manmohan Singh was appointed as the finance minister to address the prevailing economic crisis. The abolition of the License Raj ushered in a positive sentiment, providing expansion opportunities for Indian manufacturers and attracting foreign investments as well. This growth momentum was also reflected in the Indian stock market.

Based on the information at hand, I made the decision to transition from computer science to mechanical engineering, anticipating significant growth opportunities in the Indian manufacturing sector.

During my second year of engineering in 1992, the momentum of the liberalization policy surged, leading even prominent foreign entities to establish their Global Capability Centers (Captive centers). The demand for coding professionals outstripped the available supply, prompting companies to extend job offers to non-IT professionals. Training institutes such as NIIT and Aptech, offered various structured, job-oriented training programs tailored for non-computer science graduates. Despite the Stock Market crash triggered by the Harshad Mehta scam in late 1992, followed closely by the BSE bomb blast in early 1993, the demand for IT professionals remained unabated. During this period, we witnessed the lesser-known, undersubscribed IPO of Infosys in early 1993, yet the IT industry continued to grow at a staggering pace of 50% year-over-year.

By the third year of my engineering studies in 1993, it became evident that learning coding was imperative for our survival in the field. The official curriculum, encompassing languages like Pascal and Fortran, seemed outdated. Therefore, like many of my peers, I took it upon myself to learn C+ independently. It was during my summer training at Defence Research and Development Organisation (DRDO), where I worked on aircraft brake simulation, that I first comprehended the potency of software. Even the DRDO director was impressed by how the software code accelerated the simulation process.

As I neared the completion of my undergraduate studies in mid-1995, I found myself with two job offers: one from a public sector undertaking (PSU) through off-campus recruitment and another from a private electronics company. However, I made the decision to pursue further education in management and enrolled at IIM Mumbai (previously NITIE, Mumbai). During this time, the Indian IT industry achieved a significant milestone by surpassing 1 Billion USD in revenue.

While pursuing my management studies in 1996, I observed that investment banking, consultancy, banking, and FMCG stood out as the top career preferences. Interestingly, TCS, which previously secured the day zero slot during my undergraduate days, was now slated for day 7 during my MBA program. Ultimately, I was selected by Citibank, which was among the top opportunities available based on my education.

Upon joining Citibank in 1997, I witnessed Infosys beginning to recruit industry executives, offering enticing packages that included stock options and opportunities for foreign postings. As Infosys secured substantial projects, other Indian IT firms swiftly emulated their successful strategies. Faced with no alternative, global IT behemoths such as Accenture, Oracle, IBM, and others were compelled to establish or expand their presence in India to deliver cost-effective solutions and enhance scalability. This talent competition resulted in a significant disparity between IT and non-IT job salaries, prompting many of my undergraduate college peers in core sectors to transition their careers into IT.

By 1998, the apprehension surrounding the Y2K issue was tangible, necessitating unavoidable expenditures. Since Y2K bug fixing was deemed a one-time task, companies opted to enlist third-party vendors rather than expanding their internal teams. Major international IT corporations were hesitant to tackle the Y2K problem directly, thereby allowing smaller players to step in voluntarily. With the largest number of English-speaking STEM (Science, Technology, Engineering, and Mathematics) graduates globally, India offered a favorable zero-tax policy for local IT setups, swiftly establishing itself as a prime destination for global IT projects. Southern states led the charge, providing minimal political interference in IT business operations.

During 1999, the stock prices of numerous IT stocks surged significantly, multiplying by factors ranging from 5X to 20X within a year. This phenomenon led to the emergence of the first wave of salaried class millionaires. Aziz Premji ascended as the wealthiest Indian, a title he maintained for the subsequent 7 years. IT consulting became a lucrative career domain and received preferred placement slots in UG and PG institutes.

Not wanting to overlook the IT revolution, I transitioned from operations to technology within Citibank in 1999. I vividly recall being at the office on the night of Y2K, celebrating the occasion with my fellow Citi bankers.

Shortly after 2000, the IT industry experienced a minor setback with the dot-com bubble, though the stagnation persisted for only a few months. Primarily impacting stock prices, it did not hamper the continued growth of IT services. By then, the IT industry has evolved into a 5 billion USD industry.

Since 2001, the Indian IT sector has emerged as a major job creator, employing around 6 million people directly. It annually absorbs approximately 70% of STEM graduates, generating about half million new jobs. Notably, a significant portion of startups in the industry focuses on IT services, delivering substantial value to the overall ecosystem.

Over the past three years, I've served as an alumni interviewer at IIM Mumbai, and it's been uncommon to encounter computer science graduates from premier institutes applying to IIMs. The average salaries for CS graduates surpass those in postgraduate programs. Presently, the IT industry stands at around 250 billion USD and is forecasted to exceed 1 trillion USD within the coming decade.

The Indian IT industry's remarkable success story can be attributed to entrepreneurs, government, education institutes etc. but the main credit goes to IT professionals who persevered through the uncertainties of the post-Y2K era, consistently delivering their utmost despite looming threats to their livelihood.

Disclaimer: The views, thoughts, and opinions expressed in this post are solely those of the author. They do not purport to reflect the policy or position of his current and/or previous organizations.