Friday, March 07, 2008

How to write about Indian IT

The Indian IT industry is a pretty big industry by most standards. It is an industry that will employ close to 4 million people, contribute about 7% GDP for the country in 2008, give or take a few (Nasscom).

But there are many who simply cannot stomach the fact that this is, in fact, an industry. They are those who missed the bus either in the job market, stock market or even in setting up a similar business. The choices they made in hoping for something better did not work out and the IT industry happened and India suddenly found itself on the growth path, much to their chagrin. By creating of millions of jobs (and for every job it creates, there is also a multiplication factor) resulting in the improvement of standards for millions of Indians, it has made them envious. So, if you are asked to write about the Indian IT industry now, heres how you go about it.

Start off with the facts and figures, (Nasscom is a great site for facts on the industry). Then add almost immediately that a billion dollar industry be built by pure luck or pure circumstance or both. Of course, it is as easy as Ctrl+Alt+Del. So, wear your blinkers.

The cost advantage is the first thing to attack. With the rising value of the rupee and the increase in wages in India the cost advantage has to come down. This much is true. But even taking it at face value, a 1:3 gap is still a big gap - effectively you can hire 3 programmers for the price of 1.

Then, make a general assumption that Indian IT services does only data entry. Will low value added jobs and easily automatable tasks go out of the door. Of course, they will sweet people. And guess who is doing it? Those idiot Indians themselves - many companies have automated themselves out of data entry jobs. Ask around and those dumb call center guys will tell you. They will tell you how they did not like data entry work and how they innovated and created an application that did the work for them. Guess who made money on it? Guess whose productivity improved? Guess which customer was happy? And guess who is managing those applications? Guess who got some more work.

Indians in IT dont think. Indians in IT cannot think. Indians in IT are stupid. Repeat till you are convinced. That was easy, wasnt it? But how did they automate their work? Did they think about it, did they? But isn't India the back office, those million minions, who just do? How did they think? Well, like anybody and everybody else, they have a head and they often use it, some times more than a hat stand. Now, most of these thinking does not result in VC deals - because they were executed for their customers. Some of them will and some of them are.

Now, you have to get a bit angry that the standard of living has gone up and you are unable to get cheap servants and drivers and houses anymore regardless of the fact that you too benefited out of this equation in some way. The employees have everything, a job, a family, a house, a cook, a maid. Well, did you ask the cook and maid where they were working before this? Maybe you should. Also check how their kids are doing in school - since they surely would be going to school? Check with these employees about the condition of their fathers offices and working conditions. To say that the present generation is not thinking or complacent is somewhat less valid than a statement that all journalists who write about Indian IT are stupid.

There is a talent shortage, there is a talent shortage, there is a talent shortage in India only. Philipines and China, apart from Morocco and Hungary are the best destinations because there is no talent shortage there. How? Any figures on attrition in China?

Finally, paint a simple forecast that the industry will die in 2015. So, like I said, the industry is dying because of the dollar value reducing, the Indians refusing to think, rising wages and because everybody has a good standard of living. It will help if you also take a piece of data and use a minuscule piece of data to come up with this grand analysis.

Once in a while it will help if you include that the industry is dominated by upper caste Hindus, there is caste discrimination. A comparison to sweatshops (like the ones in more progressive countries) or children working in IT companies might be helpful if you want to sound particularly odious. And there are more facts you can include - let me know if you need more info.

Anyway, here are some facts: Did you know that in many companies salary is adjusted to company performance? Not sure in how many industries in the world, will you see such a radical compensation structure. Count on the fingers of one hand please.

Also, future contracts exist and are available, so currency risks are hedged - somewhat, but this is a big risk. Did you know that some of these companies have margins of some 30%? They can bring it down to 5% if they wish - and they still havent, not as of 2008. Why? Because customers are willing to pay. How can you assume that currencies will move only in one direction?

Did you know that many of these (stupid, dullard, non thinking) companies are present in "nearshores" and "smartshores"? Already? To take advantage of lower cost or proximity to customers? Did you also know that some of them sit with an excess of 2bn USD in cash which they can use to buy out companies - as they have already done (yes, they have) - consulting firms, BPO operations, chip design firms - the whole hog.

Even if you do, act as if you dont care. You are out on a hatchet job remember.

12 comments:

5vd33p74 said...

Absolutely agree :), very succinctly put. IT has also helped the pseudo-statistics that are weekly generated by many of our mainstream media. Adultery, social disbalance, crime, skewed-relationship surveys are easily made to sound convincing by just including junk data about the IT demographic.
Another thing that is perturbing is the assumed implicit equivalence of BPOs and software companies.

Anonymous said...

You left out the part where they are supposed to ask: How come India hasn't produced a Google or a Microsoft. Pompous, Muslim-hating Jackasses like Atanu Dey have been after the IT Industry's life for ages, as have unemployed ivory tower morons like Dilip D'Souza. What more can you expect of tabloid Rediff, when these so-called 'intelligent' bloggers decide to put something down just because so many Indians are proud of it. It is pure 'Tall Poppy Syndrome'....

Shreyash said...

I have been reading simimlar articles for more than a couple of years now. Initially they used to say that India cannot produce something like an Accenture or an EDS. Now most Indian biggies can buy EDS and 3 are comparable to Accenture.
Not producing a Google or Microsoft is another argument. But frankly - for the benefit of the country - we need more TCS's and Wipro's and Infy's as they mean more employment.
We have grown from nothing to 50-60 BUSD in 15 years and even if we stabilise around 150, that would be a great success. That does not mean the death. It just means stabilization because of market forces!!!

Data Entry India said...
This comment has been removed by a blog administrator.
Guha Rajan said...

Good post....No doubt, Indian IT industry acheived great heights, but Indian IT industry cannot rest on its laurels. Its a testing time now for IT services company.

I had written about this in my blog as well


http://indian-amps.blogspot.com/2009/02/evolution-challenges-in-outsourcing.html

Cignus Web Services said...

That's is true. Indian IT is at a position where we have to use our experience and skills to reach new heights.

It's not time to rest but to push harder to stabilize and gain more respect and faith in Indian IT.

Comments please.
Cignus Web Services
- a Data Mining Company

Admin said...

Thanks ever so much, very useful article. Great information! Very smart, thanks for kindly sharing it with us. Very well done indeed. If you do not mind, please visit my article related to pandeglang district in Banten, Indonesia at Kenali dan Kunjungi Objek Wisata di Pandeglang and if you want to learn how to speek Indonesia just come visit my page at Learn Indonesia Language

Daniela said...

Interesting post. I have been wondering about this issue,so thanks for posting. I’ll likely be coming back to your blog. Keep up great writing.

Find your great Travel News and sing the songs at Free Song Lyric or you can watch the drama at Korea Drama Online one of great korea drama is A Love to Kill if you go to travel to Indonesia learn Learn Indonesia Language first! And find your home cari rumah or make a blog Belajar membuat Blog find your home again rumah dijual and again at jual rumah then if you want buy a new laptop see the Laptop Price List or you can buy a New Blackberry and then take care your Health & Jewerly.

bitheads said...

I don’t know If I said it already, but this so good stuff keep up the good work. I read a lot of blogs on a daily basis and for the most part Belajar seo blogspot just wanted to make a quick comment to say I’m glad I found your blog. Thanks.

Best regards
Seo Motivation Oes tsetnoc

nike said...

Clothing has always been a thing that has been given a great importance by human beings. It displays the attitude that the people exhibit.
ed hardy clothes
ed hardy shirts
Lots of brands have been existent in the clothing industry and a famous one among them is the Ed hardy clothing brand.
ed hardy jackets
ed hardy hoodies
The brand got its name from the famous American tattoo artist Ed Hardy. He was a very famous tattoo artist and has published many books on tattooing techniques.
ed hardy boots
ed hardy polo shirts
But his tattooing turned into a brand by the efforts of a company called Christian Audiger. This company was a very famous and very powerful company in the field of clothing.
ed hardy shoes
ed hardy jeans
They felt that it would be appropriate to create a brand called Ed hardy and use Hardy's art as the main selling point for the brand. This venture had turned out to be a very successful one and Ed hardy clothing is one of the most famous brands in the clothing industry.
ed hardy outerwear
ed hardy long sleeve shirts
The brand became very famous because it was worn by many famous celebrities like Madonna, Britney spears and also Sylvester Stallone.
ed hardy bags
ed hardy winter boots
The brand has clothes for men, women, and kids. They have also diversified their business by having a lot of accessories to support their clothing business.
ed hardy love kills slowly shirts
ed hardy love kills slowly shoes
ed hardy love kills slowly boots
for men they have a variety of products such as active wear, denim, outwear, swim trucks, sweaters, t-shirts, tops etc.
ed hardy trousers
ed hardy mens
the accessories include things such as belts, caps, scarves, shoes, socks, jeweler, sunglasses, ties and even wallets.
The art works is a unique combination of American and Japanese cultures. The unique selling proposition of the brand is the way in which the company has used the art works of Ed hardy.
ed hardy womens
ed hardy t shirts
ed hardy sunglasses

nike said...

Nice work and thanks!
Running
Adidas currently manufactures several running shoesNike shoes, including the adiStar Control 5, the adiStar Ride
Cheap nike shoes
Discount nike shoes
the Supernova Sequence and the Supernova Cushion 7, among others.
Nike shox r4
nike shox shoes
Adidas also uses kangaroo leather to make their more expensive shoes.
Association football
One of the main focuses of Adidas is football kit and associated equipment.
puma cat
cheap sport shoes
Adidas also provides apparel and equipment for all teams in Major League Soccer. Adidas remain a major company in the supply of team kits for international football teams.
cheap nike shox
cheap nike max
Adidas also makes referee kits that are used in international competition and by many countries and leagues in the world. In the United States, referees wear the Adidas kits in MLS matches even though the primary referee supplier is Official Sports.
nike tn dollar
nike running shoes
The company has been an innovator in the area of footwear for the sport with notable examples including development of the Copa Mondial moulded boot on firm dry pitches for forty years.
nike air max tn
puma shoes
Adidas became renowned for advancing the "Predator" boot design.This design featured a ribbed rubber structure for the upper leather of the shoe, used to accent the movement of the ball.
discount puma shoes
puma mens shoes
The Predator also features the Craig Johnston invented "Traxion" sole. As the development and popularity of Football continued Adidas played a leading role in shaping the style of the play itself.
puma running shoes
puma shoes
FIFA, the sports governing body, commissioned specially designed footballs for use in its own World Cup tournaments to favour more attacking play.
ghd hair straighteners mk4
hair straightners
ghd iv styler hair straightener
ghd hair straightners
cheap ghd hair straighteners

kevinhil123 said...
This comment has been removed by a blog administrator.