Saturday, March 29, 2008

State of Affairs of Indian IT Industry

Thomas Freidman (forgive me if it is wrong) said World is Flat and Indian IT Industry became euphoric. Infosys even changed its punch line in many PPT from "Powered By Intellect and Driven by Values" to "Winning in Flat World". World is Flat was discussed in almost all Meetings and Statements. So, in Summer of 2007, I finally read the book and as soon as I read it I had only one line to summarize the book "Earlier we had nothing to eat... Now we had shit..." I can understand the American Concerns but not Indian Euphoria.

All Indian Software Industries be it Indian or MNCs barring few new startups are all here to take benefit of labour arbitrage that India offers. What we can bill for 36USD an hour would be billed by a consultant in US for close to 60USD. So, lets exploit that.. US company pays 36 USD instead of 60 USD and Indian company or Offshore arm pays 10-20USD to the Employee and pockets rest. The Fresh Engineering Graduate today earns 3 times in Bangalore than what he would have earned in a small manufacturing firm in an obscure village besides a boiler at 70 degree Celsius. A perfect win win.... true... but... is India really shining....
I doubt and reason is simple. There are people who can reverse the trend. Brazil and China are educating their kids in English and they are capable of providing even chaper options and better quality. So what is there which we can say is Indian Core-Competency. The favorable winds of today may change their direction tomorrow and then would India and Indian IT Industry still be shining?
The Indian greatness lies in its creativity and free will. Are we the Software Engineers creative??? Yes we are but in all fields but our work. Unless we incorporate that in our work, the future doesnt look so great. We not only need to work hard but to work smart. We soon need to build another IBM and Google rather than just doing their work at lesser cost. Then and only then we can say Indian IT is to stay long. We need to utilize our leverage today to harvest tomorrow. Else, one day we might become what South Korea was for Manufcturing.