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.

6 comments:

Gaurav Pahwa said...

I stoutly agree with you, and its all about taking risk ,going offcourse to do something that benifits others not being selfish at all. We definately need our google..........we need it....!!!!

rajnish sinha said...
This comment has been removed by the author.
rajnish sinha said...

interesting post :).. I personally have not seen the indian IT mass change its thought process at all. They still have the same mentality of gun-slinging anything or everything that they come acros. They end up being very mediocre in their thoughts, intelligence, work ethics, attention to detail and etcs.. They havent even come close to showing any of the stuff that you mention in your post. we always rant about how great the indian brain is, but I guess it aint getting shocked(as in electrical) enough to do things right. :)

However, very intersting thought process though.

good stuff

Anonymous said...

Quite right..
2 things:

1. We do seem to be innovative in our BB, mails, etc. but not in work. That, I feel has sprung due to a faulty education system. One that does not harness an individual's creative potential and help him channelise it in his mainstream work. This is what I feel..

2. Friedman's thought of a 'Flat world' was inspired by Nandan Nilekani. So, Infy emphasises on it by the phrase - 'winning in a Flat World', coz its proud of it :)

Unknown said...

Good One !!!
- Anand Vaidya

Unknown said...

Your thinking are really thought provoking...i dont have much idea about IT industry but there's problem people now are blindly following a path.a same routine is followed everyday from day to night..work is not enjoyed rather its seen as something we are compelled to do...that's why creativity is getting lost..but still there are people out there for whom we cant say so..mass change is always possible with mass involvement...but your effort is nice because thousand candles can be lighted from a single candle