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Wednesday, December 5, 2007

The Future of Indian IT Industry

What will happen to India if someone drops four nuclear bombs in four corners of America? Especially, what will happen to our IT industry?

This thought came to my mind the other day when I was debating with my friend about the future of Indian IT. I think its bleak.

Gone are the days of the silicon boom! The laws of Moore may be still valid but the growth doubling is not there. The Silicon Valley, once the hub of development and money, is doesn't give a bright image now.

Our IT companies have done many things to help US companies. From automotive to retail to pharmaceutical to finance, Indian touch is there everywhere. But, almost everything in their country runs under machine (read computer) control. So, hasn't the flow of money reduced? Hasn't there been a decrease in the orders that we are getting?

It can be argued that the existing system needs to be updated every night and someone has to provide support to run the existing ones. Its true. But, still, the flow of money and projects that was witness in the start of 20th century will reduce for sure.

Then comes the biggest roadblock. Appreciation of rupeee. Its one thing that we Indians should have been proud of. Ruppee gaining against dollar is a happy moment for us. But, there comes the problem. Our export revenue is getting reduced. It makes the entire thing sour.
Someone may urgue that we are not completely depended on US on our export revenue. We have exports to Europe and other countries. But don't forget the fact that the lion's share of our revenue is from US alone.

I hate NASSCOM (Hope is spelled it right!!). I will hold this organization responsible for creating millions of jobless engineers by 2012. They went on creating hype that there is a very big talent crunch in Indian IT industry. Engineering colleges mushroomed like anything in every small cities and villages. And now they have said that out of every 4 engineering candidates only 1 is employable!! That means if four millions engineers pass out this year, then one million will get some job. Others will sit @ home!!! NASSCOM is an organization that lacks an objective.

So, what can save Indian IT industry? Well, first of all, the majors SWITCH (Satyam, Wipro, Infosys, TCS, Cognizant, HCL) should stop the hype surrounding the campus recruitments. The truth is they recruit in large numbers from colleges so that their competitor will not have anyone to take. This has to be stopped. The image of mass recuitment has to be removed (Recently, IBM and Accenture also started following the herd). Then, the focus of business has to be shifted. Now its just outsourcing work. 'Someone else creates the idea. You implement it.' It has to be changed and we should become innovative. R & D has to be pushed up the ladder and more resources should be allocated. Release their own products and do outsourcing and BPO at the same time. That's what IBM is doing now. So, what are our companies waiting for. Buckle up and change the tide.

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