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Europe is the way to go
I find your columns persuasive and interesting reference points. I read Mohan
Babu’s column on the future of Indian IT with great interest. In context
of the various reservations against outsourcing to a low-wage country, it is
felt here that it is better if Indian companies come to Europe and offer the
best of front-office services to their European customers, many of which are
true global players with clients for ITeS in many countries. This supply chain
speaks English mostly; so the Indian fear that one cannot serve the European
market because of the multitude of languages can easily be overcome by having
a multicultural front-office crew. Most importantly, we find that simple BPO
does not lead to the desired overall process optimisation; hence, we use the
term BTO (business task outsourcing) instead of BPO. With a European subsidiary,
Indian entrepreneurs can participate in IPTs with their customers and can work
as local partners, not as far-away BPO service providers. The huge, mostly untapped
world market for Indian ITeS is thoroughly different from the IT and IT services
market since the workforce is usually made up of graduates with three years
vocational training. It is remarkable that Nasscom has set up a working group
for HRD for ITeS. We are experimenting with CMMI for such networked ITeS and
harmonising the German Dual system of HRD with that of India. All this contributes
to your vision of BPO for India, as ITeS offers the possibility for youngsters
to become vocational professionals and earn their living without having attended
an IIT.
— Dr Dieter Feldmann
Geschäftsführer/ CEO Haus
NOVATECGesellschaft für Innovation & Technologie
We can make it happen!
I found the article on Larry Ellison [IT People, May 19] and also the article
on ‘Small companies can be big customers’ [ITP, July 28] interesting
and a refreshing read. But I have few observations to make.
1. According to Nasscom’s annual survey, the overall
software industry in India grossed annual revenues of Rs 48,000 crore registering
an overall growth of 27 percent. The total exports grossed Rs 36,500 crore,
while the domestic software market contributed Rs 11,500 crore. The export market
grew by 29 percent, but the Indian IT market was limited to a meagre 16 percent.
At present the domestic software market size continues to grow at a marginally
lower rate, as compared to software services exports, due to higher levels of
piracy, pressure on software prices and lower level of sophistication in IT
spending for most Indian companies.
2. Nasscom has been making efforts to provide support
and promote competent companies in the SME space, this should herald some movement,
especially in the product space; hopefully this will have a trickle down effect
in times to come.
3. True Indian market needs are specific especially
in finance (Octroi, TDS...). My experience with some Indian ERP products is
that it’s difficult to benchmark them with global leaders like SAP, BAAN,
J D Edwards, etc. I feel our products are strong in one module, say finance,
but lack functionalities in others.
— Suresh Nair
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