IT Slowdown in India
March 20, 2006This is an old article that I wrote in May of 2001 - many months before 9/11. I was quite shocked when I re-read it recently, only to find that half a decade later, it is as relevant as it was when I first wrote it.
Since one of the reasons for this site is for it to be a single place where one can find all my old articles, I am moving it here. –ac
I have been quite vocal with my reservations about India’s “techno slavery” approach to IT business, and I definitely haven’t made any friends at NASSCOM that way.
Sure, the tech slowdown in the US *has* been a rude awakening for Indian IT companies, but I bet that we haven’t yet seen the worst of it.
Many IT Companies have relied purely on software export to the USA, and they are in for a miserable ride, because they have painted themselves into a corner.
Should the US market suddenly begin shutting down on them (as could very possibly be the case right now), they will be left with no alternate markets, no alternate sources of revenue, not other option but to start pink-slipping their talented workforce to reduce expenses.
If that isn’t shortsighted, tell me what is.
An analogy, if you please - much of the Indian software industry is all about leaves and branches. Sadly, you also need strong roots for a tree to survive the winds of change.
With the primary market (the USA) in doldrums, it is time for the industry to strengthen their roots in more local markets - not just India, but Asia, since Asia will without doubt be a far bigger market with more lasting challenges and opportunities than found in the US.
The current policies that the Government is dishing out make it far more attractive to work for other people than for one’s own.
I am old enough to remember an India where software companies were actively persuing local markets. I watched the Wipros and the TCSs, the Knoxwares and the SRGs, the big guys and the small ones - all chasing the holy grail of “Indian products, Indian markets, International Quality” with earnestness, determination and a lot of innovation.
I watched all these efforts disappear like puffs of smoke in a gale as the export-oriented policies began appearing.
The current policies have killed the Indian software industry.
Don’t laugh - think about it. By catering exclusively to American clients (who will never acknowledge the Indian roots of their products/services when marketing them), you are part of the American software industry - an industry that caters to a market that (despite globalisation) suffers from a chronic case of “Not Made Here Syndrome”.
Take away the carrots that make it more attractive to cater to American markets than Indian markets, or at least create a level playing field - create policies that reward catering to local markets in the same way the industry is currently rewarded for bringing in export dollars.
Understand the need for balance, and for keeping more than one iron in the fire. Don’t make the “Think Global” mantra an excuse to ignore (and erode) your local markets.
As you are about to witness (and possibly painfully experience) - there is no place like home (markets).
- Posted in : General
- Author : achitnis
Comments»
Nice to read this article. I have also often expressed the same to my friends who are working in the IT labor industry. Whenever we discuss of having a startup, the guys come up so quickly with outsourcing projects. That pisses me off. Hey guys, don’t you wanna do some cool stuff, something original like a product. Even if in the service industry, do something for your own country. Relying too much on other countries ..hmmh.
Most service companies so called Hi-Tech, boast of the increase in the number of employees per year. I have watched them so closely now, They are only agents who sell resumes at a lower hourly price. Thats nothing more than offering Cheap Labor. Why do you boast of Hi-Tech Indian IT industry ? How many IT product companies does India have ?
Incisive article. One of the few writers who has thoughts worth sharing, unlike many so-called technology writers who seem to use their writing more as a medium to display their (lack of real?) language skills, or, worse, write stuff like “India has the 3rd largest scientific and technical manpower in the world” (that one is an old chestnut) … gotta say that our output doesn’t match that statistic - not by a long chalk.