There are few things that frustrate the leading Indian IT software and
services companies more than being described as Indian. The likes of
TCS, Wipro
and Infosys want to be seen as
international suppliers, not be defined by their country of origin. After all,
how often is IBM described as a US technology
company?
The desire to be a global force is understandable and realistic – but
equally, the Indian (sorry) firms are being affected by their growing
international nature.
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Last week, one of the world’s largest private equity groups,
Apax Partners, was
reported
in The Times to be talking to Patni, one of the longest-established
providers from the subcontinent. And
TCS
announced plans to outsource 5,000 jobs to Mexico. Yes, that’s right – an
Indian outsourcer offshoring its staff. TCS blames wage inflation at home and
the rupee’s surge against the dollar; Mexico offers a low-cost environment for
supplying the firm’s US customers.
Offshore providers in Eastern Europe, the Far East and South Africa are
becoming increasingly viable options for Western firms as they develop greater
expertise and skills.
Of course, many of the development centres in these emerging economies are
owned and operated by the Indian outsourcers. But don’t forget that the
fastest-growing employers in the Indian IT industry are the big US and European
companies such as IBM, SAP and Microsoft.
It is remarkable how quickly the Indian effect has revolutionised the shape
of the IT industry. Even five years ago, outsourcing to India was hugely
controversial, with national newspaper front pages decrying the latest call
centre to move its operations overseas.
Today, offshore IT professionals have practically eliminated the skills
shortage for basic technical skills, such as programming, support or
maintenance. If you can’t employ enough techies, just buy them in from India or
elsewhere.
The Indian firms deserve their place on the world stage, but now the
challenges they face are similar to their Western competitors – a sign of their
globalised nature.
For IT managers, the world is a stage from which you can choose the very best
players.
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