India IT is loosing its shine due to rising costs, I just read the news items in HT2 Business & world (Hindustan Times, 07June07, page 21) that TCS is planning to hire 5000 software professionals in Mexico; mainly to save cost.
Recently, as an acting CTO for a startup, I too decided to get a software module outsourced from eastern Europe. Believe me, we got good quality, fast turnaround at less than one fifth (Yes that's 1/5th) the lowest Indian quote!
Salaries in India has been sky rocketing, and rising rupees does not help as well. Not that I am against high salaries. People work hard and they have all the rights to get paid the highest possible sustainable salaries.
The problem lies with our Indian software leaders. We do not get out of our colonial coolies mindsets. Indians in 18th and 19th centuries we taken to South Africa and West Indies, by the Angrez to work on farm. Unlike their African counterpart in 15th and 16th centuries, who were enslaved against their will; the Indians willingly went along for some fast money. Recently too illiterate workers from Kerela go to Emirates as coolies.
The same model was followed by our great software leaders in 21th century, albeit in IT space. Indian intellect did shine the world. But we still had the old business model. We just remained glorified cyber coolies.
The software mughals of today, have earned the glory and the booty as labor suppliers , just like the slave traders did in 15th centuries. Only that they were whites trading black, and we are brown sahibs exploiting the fellow browns.
Analyze any balance sheet of the darlings of BSE (Bombay Stock Exchange). The 40% growth in revenues are backed by 40% increase in manpower! So, no real business model efficiencies in real term of revenue per employee.
Microsoft and other software product and productized services companies have much more revenue per employee. Their leverage is their IP (Intellectual Property).
Yes I agree! Doing product, or productizing services not easy. We are not here for a easy game either.
The software coolies mindset need to be changed, if we are to sustain the competitive edge and keep paying more and more salaries.
The leaders need to re-incarnate themselves into Intellectual property developers. Then and only then we can survive the next wave.
We have gained much experience working for the US, UK and EU. Now leverage that to create products and services. Also, we need to have our presence in the emerging markets to leverage the cheaper labor there; Or else, others will beat us at it.
hey guys! wake up! If you are a CXO then think about it and talk to your board of directors or investors.
If you are an employee, use email and blog power to convince your management to graduate to productizers. Or better still, MOVE YOUR OWN CHEESE. Chuck your cushy job, and start a company. If you don't move our own cheese, some one else will move it.
If you havn't notices till now, Our Iceberg is Melting (with apologies to John Kotter,)
