The death of this industry is far from anyone’s mind, in the year 2008 the Information Technology and Information Technology enabled services industries are supposed to be the major drivers of India’s economic growth. The two industries combined will employ 4 million people and account for the 7 percent and 33 percent of the foreign exchange inflow. There is a tiny company in the Silicon Valley called the Inside View. It helps the customers in the sales lead generation, qualification and the opportunity identification research using the technology and a software as a service business model.
All the 150 people at the True Advantage have been laid off through no fault of their own, in November 2007 the Inside View acquired a company called the true advantage which did the exact same thing manually with a team of the 150 people in India. The trueadvantage had 2,500 customers all of which are being transitioned to the InsideViews’s software-driven solution. All the 150 people at the true advantage have been off through the no fault their own The jobs are low-value add and it is easily automatable that should and will disappear over the next decade. The people talk about the India moving up the value chain. Some of that has indeed happened, an industry that the start gain momentum with the Y2K porting projects that has blossomed beautifully into one of the offers as much more comprehensive spectrum of the services.,
The India for all its glory is still the world’s back office. The IT/ITES industry is a services industry. The Indians do not do the thinking in a simple terms. The customers do then India executes. India has not learned to come up with the technology products of its own. In barring a few exceptions, the huge amount of the venture capital chasing India finds it in a difficult to be deployed. There is a way too much money and far too few deals. Tech sectors VCs are now diverting a capital to retail, real estate, hotels and many more. It is competitive advantage that the $30 billion services industry.
The companies like the Infosys and Wipro assuming that they want to preserve their business momentum that will need to diversity their portfolio away pure body-shopping and process competencies to the technology driven advantages. The obvious place for then to go is the Software as a service. Their current market caps and cash reserves are high, so an easy way for the transition that would be a via acquisitions, they would cut the manual and replace with SaaS tot he extent possible. The golden goose is still laying large, warm eggs enogh to feed the 4 million and the families, this is an instance to give people an accurate picture, none of this is happening quite. The workforce is getting a comfortable in the cubicle chairs just the turkey gets comfortable for the thanks giving.
REFERENCE:
Death of Indian Outsourcing
