Why Indian companies should sponsor Open Source projects

ANIL SETH

OUR finest exports are software and IT-related. Yet we in India use very little of our own products and services. There are a number of fairly obvious reasons for it. We cannot mass-produce IT services. Hence the cost of development is the same whether it is for a foreign client or an Indian. In fact, the development costs may even be lower for foreign clients if we factor in some risks. Indian clients are new to IT and hence their requirements may be prone to greater change (and even confusion) especially at the late stages. Contract re-negotiation may be very difficult because Indian clients normally feel they are paying far too much as it is. That is why IT services are not affordable for many Indian organisations.

If these services became affordable, we would probably be acutely short of experienced personnel to match the demand. We therefore really need to look at alternatives, and open source may be the ideal option.

Large IT companies in India have a wealth of knowledge within their organisations. The nature of business is such that there will always be people on the bench. The risks of assigning such people to local projects are far too high. These companies could sponsor Open Source projects to which their staff could contribute; in fact, they should be encouraged to contribute. The projects could be chosen especially for the social benefit which may result from use of such systems. For example, a free POS application may make it possible for the government to enforce VAT, bring about greater transparency in transactions, and lessen the evasion of taxes.

The skill-sets required to implement solutions are different from those required for creating complex, reliable applications. Once the framework is present it should be possible for the next level of the services sector to open up and cater to the implementation needs of small domestic companies. These companies may even hire IT people the way they hire accountants. This will bring about a significant change in the quality of life of many people who are educated but are not able to match the needs of the well-paying and demanding IT services sector.

From the economic perspective, the major companies will not be addressing this market, so it is not a question of cutting into one’s own revenue streams. There will not be any question of eating into someone else’s business because this business is virtually non-existent. On the contrary, the presence of core applications makes it possible for many more companies to offer cost effective solutions by putting the right pieces together and providing training and implementation services.

For the employees of the companies, this may lead to improved morale. People have the need to be needed and contribute to the welfare of the society around them. Contributing to Open Source software is a very satisfying experience for many. It would be quite a thrill to have contributed to a product like Quicken which is used by millions to file their taxes in India.

Open Source need not be a gift from large IT companies only. Architects, lawyers and doctors have similar needs. Professional bodies could sponsor Open Source projects targeted at their members. Collective development will result in a very small cost-per-member. Another advantage of Open Source would be that members and groups could alter and enhance the application for their needs e.g. each state could have a localised version.

Co-operation in IT could thus lead to a change in social awareness in our society.

Seth is a physicist by training and computer engineer by profession. He may be contacted at anilseth@sancharnet.in