I was in school, when our neighbor sold us a tape recorder for Rs 1000, which I am sure was a great deal for them.. and us sitting in India. After all it was an American tape recorder!
Whenever someone goes to India from the other countries, specially the US, the expectation is that one would take something “Imported”. Things outside are always better and cheaper. Arent they?
It is being rumored that Infosys may buy CapGemini. Although CapGemini has a total Sales of USD 10.35 billion and Infosys sales are USD 3.1 billion, but its profits and market value are half that of the Indian company.
Some say it is too big a fish to swallow, while the past experience of Indian acquisitions show that it may be brought about. One thing that most Indian companies are not losing sight of is that this is a time when they command fantastic Market Capitalizations, despite lower sales. These times may not last long! The sooner they acquire some big fish and become a global player, the better it will be for them!
The competition is heating up and biting the Europeans and the Americans. Here it seems that these guys are ganging up together! Well.. that will be a little tough because they are the ones – personally – who really have the best use of the outsourcing.. specially to India! Well it would be fairly interesting.
While a consensus eludes on a broader trans-Atlantic cooperation, the companies in the US and Europe think such an agreement will provide a platform to fight China and India, said a survey of CEOs from the two regions.
According to the survey carried out by Roland Berger Strategy Consultants for the German business magazine think:act, the trans-Atlantic cooperation is finding widespread support among Europe’s top managers, but is being met with skepticism in the US.
"While 95 per cent of European decision-makers would like to see a close cooperation of the two economic regions, about 40 per cent CEOs in the US consider such a cooperation unimportant," the survey found.
However, CEOs of both the US and European companies agree that China and India present the greatest competition and extension of trans-Atlantic relations would serve as a strong platform to fight this situation, it added.
The offensive from China and India is high on executives’ lists in Europe (54 per cent) and the US (50 per cent), said the findings of the survey, which would be published in the next issue of the quarterly magazine produced by BurdaYukom Publishing GmbH.
Americans are coming to India.. and not for tourism alone. Some are moving for jobs! This trend is seen to be growing over the next few years and the jobs are aplenty in India and hard to come by for some traditional areas.
Indian outsourcing has inspired comments from Jay Leno and a man who is much funnier, George Bush. It has unleashed debates and even suicides.
But for sometime now, Americans have been outsourcing themselves to India for survival. It is tough and sometimes a shocking experience.
But they are also discovering that though India churns out lakhs of graduates every year, there are jobs that Americans are unexpectedly better at.
Joining the Indian workforce from his comfy home in Virginia, Ed Cohen, 46, jumped on to the bandwagon eight months ago, as senior vice-president at Satyam Computer Services’ School of Leadership.
Cohen brought his entire family to Hyderabad where they have built a warm, happy home for themselves. Even their dog came along.
Seeing a camel for the first time, Cohen says their dog, "freaked out". Cohen has been trying to speak to Indians in Hindi only, to be answered in English.
Cohen and the other Americans who come to India see a promising monetary opportunity. Indian companies are paying Rs 20-30 lakh per year to middle-management Americans.
When one year’s salary will purchase a nice two-bedroom home in Bangalore, it seems like a lot to an American who would need four year’s pay to purchase one in the States. There are also others who see an opportunity for career advancement.
The National Association of Software and Service Companies (Nasscom) has said in its May 2006 Newsline report that the visibly large body of young Indians, "is not directly employable and needs to be transformed into ‘suitable’ offshore talent before it can be used by the country’s technology industries."
According to technology and market research company Forrester Research, "There are problems finding experienced development leaders, program managers, and domain experts."
They say that there is a feeding frenzy in India as companies scramble to find senior staff to keep the more complex projects on track.
"We know that Indians working in the US are being offered their US pay if they return to India." This situation, coupled with job erosion and career plateauing in the States, has spurred a rush of working Americans to India.
Kris Lakshmikanth, CEO of Head Hunters India, says he does not have to advertise in America. With 30 emails a month from Americans soliciting the company for work in India, his company’s presence is known through word-of-mouth.
After Doctors, Engineers, IT professionals, Nurses and teachers.. now US will get Truck Drivers from India! The funny thing is that this company is going to – of all places – Andhra Pradesh .. to hire their drivers!! Even in India, most truck drivers come from Haryana and Punjab!! And I have seen ads of some Punjabis-led companies who have truck fleets in the US (california) and they train the folks coming over. In fact one such ad is completely in Punjabi! They don’t even bother putting it across to rest of the Indians!. All I can say is for better success, this company should have opened office in Chandigarh.. as opposed to AP! Just because the IT folks come from there.. does not mean that the entire India resides there! (Story Tip: Raj)
Tom Friedman wrote a book “The World is Flat”.. heck that was an understatement!
Here is an example of how this start-up – GramIt – has engaged youth in a hamlet where it takes over 10 hours by train and bus/car to reach! The guys there are doing – BPO work! Well .. not really for the high tech American or European but for the up and running folks in Hyderabad!
To get there, you take a 10-hour train ride from Hyderabad, the nearest big city, then drive an hour on narrow roads past rice paddies, coconut groves, and ponds teeming with prawns and crabs.
It is finally out! The reason why companies are outsourcing is more because of Growth, Increasing Speed to Market and Improving Productivity. These are the replies of the 114 American software companies.
Offshoring of software development by software companies is not costing Americans jobs, according to a report being announced Thursday by the Software & Information Industry Association (SIIA).
The association is releasing its Global Software Development Survey Report, which surveyed 114 American-based software companies last year. In a conclusion that stateside developers probably would not find surprising, SIIA found that software companies are increasing offshore software development efforts. However, companies are not looking to displace American workers, said David Thomas, executive director of SIIA.
If you still needed any confirmation of the strength of Indian telecom market – here it is. Over the next 3-5 years, Cisco will move 20% – ONE-FIFTH – of its top brass to India!! Now, that is a MAJOR shift in any company. A lot of companies make the shift but this seems unprecedented!
And what prompts this shift?
– Great Market for Mobiles and a growing Internet usage
– Cheap talent that can help Cisco compete with Juniper and Huawei technologies.
– Good technical talent – not just cheap!
Wim Elfrink, Cisco’s (CSCO) chief globalization officer, is at the vanguard of a new initiative. This January, Elfrink will relocate from his San Jose (Calif.) headquarters to Bangalore, India. In a major display of commitment to the Indian market, Cisco plans to have at least 20% of its top executives working in India in the next three to five years, according to Elfrink.
India is the world wide champ when it comes to outsourcing! In a survey of the best cities to outsource to, the first seven slots go to Indian cities with – hold your breath – New Delhi – my home – leading the way!!
And what is the primary reason for that? Here is an interesting point made by the senior person of the company which did the study as per the Yahoo story.
“The labour pool remains a huge advantage in India — you don’t have to spend lots of money training people up,” Sabyasachi Satyaprasad, a senior director at neoIT, told reporters in New Delhi.
I had discussed in my last post that the outsourcing debate is on the wrong track! It is NOT about the cost at all. It is about scalability and efficiency foremost! Here is another opinion that finally sees that light!
Salaries for Indian IT workers are climbing an average 12% annually. As large U.S. companies such as IBM and Electronic Data Systems Corp. expand operations in India, some analysts and competitors contend that pressure on wages will only increase, and the top-tier Indian IT providers will become victims of their own success.