Perception and results of Indian IT success story has a gap
Published Saturday, November 18 by Prabhas Sinha
I was going through a recent research by Gartner wherein they presented some interesting facts about Indian IT Service providers, scanning through the outsourcing lens:
1. Indian companies scale up to 70% when it comes to business expertise.
2. Off-site communication effectiveness is 46% (surprisingly on-site communication effectiveness is 78%)
3. Security Risk is 54%
4. Legal and Regulatory Risk is 60%
5. Foreign Trade and Payments Risk is 54%
6. Infrastructure Risk is 75%
7. Capacity for innovation is 3.75 on a scale of 7
8. Ethical behavior of companies are rated at 4.2 on a scale of 7
9. Government's priority for IT has been rated at 5.7 on a scale of 7
You might be wondering that with so much of not-so-positive flags, the growth in the industry has altogether a different story to tell -- outsourcing is at its peak if you look into some of the biggest deals that Infosys, TCS, Satyam & Wipro have cracked in the last 3-4 quarters.
Where is the gap ? It just can not be the cost advantage. Would look forward to hear from what people have to say.
1. Indian companies scale up to 70% when it comes to business expertise.
2. Off-site communication effectiveness is 46% (surprisingly on-site communication effectiveness is 78%)
3. Security Risk is 54%
4. Legal and Regulatory Risk is 60%
5. Foreign Trade and Payments Risk is 54%
6. Infrastructure Risk is 75%
7. Capacity for innovation is 3.75 on a scale of 7
8. Ethical behavior of companies are rated at 4.2 on a scale of 7
9. Government's priority for IT has been rated at 5.7 on a scale of 7
You might be wondering that with so much of not-so-positive flags, the growth in the industry has altogether a different story to tell -- outsourcing is at its peak if you look into some of the biggest deals that Infosys, TCS, Satyam & Wipro have cracked in the last 3-4 quarters.
Where is the gap ? It just can not be the cost advantage. Would look forward to hear from what people have to say.
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American companies need to take a hard look at these facts and take into account that although they are spending less, they are getting much less. From Communication to Innovation. Indian companies are selling American companies on reduced price and advanced people expertise and American executives are missing the simple fact that US Citizens are not able to learn from the Indians, that the communication gap is Huge. I think that the answer to your question is a combination of cost advantage with the perception that the Indian employees are more advanced than American employees. This is NOT true and American executive who make these decisions need to wake up and find the ROI.