Looking Into Future- IT Industry and Nash Equilibrium

This article has to be read in continuation with my earlier article s- IT Industry the Next Diansours Part 1 & 2

The purpose of this article is to move into strategic solutioning after expanding on the current and projected future problems the Indian IT industry is facing and going to face in the previous articles.

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"When you have abundance you attack, when you have less you defend " - Art of War, Sun Tzu
If i Try translate this in to Game Theory Language , It will be we play non cooperative game's when we are in a position of strength , we play cooperative game's when we are in a position of weakness and are ready to share to pie instead of completely loosing it.

Indian companies were playing non cooperative games with each other till now as there was over abundance of available resources and projects. Now with increasing pressure on resources availability and profit margins , will force them to cooperate across companies . In other words there is opportunity for Indian IT industry to move into cooperative Nash equilibrium in which there is sharing of resource pools across companies to optimize the profits and remain competitive compared to companies from other countries. In other words if company X has project on ERP but no resource but company Y has resources on ERP but no project , then they cooperate , else this will go to a third company in that case both will be looser.

Cooperation becomes more important as due to strengthening dollar, companies from vietnam , china will offer better price differentials to clients compared to india. In this scenario only way to remain competitive is optimise resource within the company and across Industry.

This will require a resource supply chain hub where the partner companies can have visibility on resource visibility across the board and hence can share the resources. The key characteristics of this planner will be 1 ) Visibility of resources across partner companies 2 ) Rating and Ranking mechanism for the resources to drive pricing and quoting 3) Price and Resource optimization capabilities for a given project.