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Re: Indias software MNCs look to China for cheap talent



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Please help make the Manifesto better, or accept it, and propagate it!
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Indian software industries cannot put "national interest" before their own
survival.  This was bound to happen as the pay scales for indian programmers
goes higher and higher.  Also what "national interest" are you talking
about?  What kind of perverse thinking is this?  What is in more in national
interest, Indian companies slowly losing business to Chinese companies and
dying, or Indian companies hiring cheap chinese labor and growing? 
Competition from all countries including china is inevitable.  Success in IT
is not our birthright, neither is it guaranteed for all eternity just
because we have a good start.  Our companies need the freedom to formulate
their own strategy and not get it dictated in the form of some policy by
some assinine babu like you.  And what shit are you talking about when you
say the Indian companies are obligated to the Indian govt...  Who needs
whom, the software industry needs govt sops/tax breaks or the indian govt
needs the dollar revenues from indian software companies?  We do not need
more "policy" tying down our companies and our people?  Your stupidity makes
me boil with anger!!

--- Raju Agarwal <krantikari@hotmail.com> wrote:
> ---------------------------------------------------------------------
> Please help make the Manifesto better, or accept it, and propagate it!
> ---------------------------------------------------------------------
> This is an ominous development.
> 
> I would hope that Indian software companies put the national interest
> first
> and not outsource software development work to China.  Given the tax
> sops
> and various benefits the Indian software industry receives from the
> Government, in my opinion, they have an obligation to maximize job
> creation
> within India.
> 
> Perhaps some Policy should be introduced that ties the above mentioned
> sops
> to a committment to not outsource work to other countries.
> -----------------------------------------------------------------------
> India’s software MNCs look to China for cheap talent
> 
> Snigdha Sengupta
> MUMBAI
> IT IS still a far cry from India’s 300,000-strong resource pool but
> China’s
> fledgling pool of software professionals, estimated at a little under
> 30,000, is drawing more than a passing interest from the big guns of
> Indian
> IT -— Tata Consultancy Services, Infosys and Wipro.
> 
> Wipro, for instance, does not the rule out the possibility of
> outsourcing
> part of its offshore development work for US clients from China a year
> down
> the line.
> 
> TCS has gone one step ahead and set in place a `China Strategic
> Initiative’
> at its Bangalore offices. The initiative is headed by R Ramanan, who is
> also
> the regional manager of TCS’ Bangalore operations.
> 
> The company’s expansion plans in China are of strategic importance to
> its
> larger plans for collaborative ventures in the Asia-Pacific region. It
> has
> offices in Vietnam, Taiwan and Hong Kong.
> 
> A TCS spokesman in Mumbai said: “TCS is looking at China since the
> company
> has always taken a leadership in exploring new opportunities and
> geographies
> to maintain its leadership position. We are currently concentrating on
> building relationships in that country and it is too premature to
> provide
> any details at this stage.”
> 
> Chinese Prime Minister Li Peng recently visited TCS’ facilities. Infosys
> is
> not fighting shy of China either. Speaking to The Economic Times,
> Infosys
> deputy managing director S Gopalakrishnan said: “We believe that China
> is a
> potential competitor in the future, and also a source for talented IT
> resources. Hence, it is a potential location to set up a development
> centre.”
> 
> The key factor behind this interest is the lower cost structure that
> will be
> available to Indian IT firms involved in outsourcing work for US and
> European clients.
> 
> Language is the primary constraint China faces today in growing its
> resource
> pool to sizeable volumes. If all goes well with the Chinese government’s
> 
> English-teaching programme, in 2-3 years China will be able to build up
> a
> large resource pool of software professionals.
> 
> The good -- or bad, depending on your point of view -— news, is that the
> 
> Chinese professional will be at least 15-20 per cent cheaper than his
> Indian
> counterpart.
> 
> Today, a high-end Chinese software professional costs $20,000 per year
> against the Indian rate of $12,000 per year. But according to Wipro
> vice-president (corporate finance) Suresh Senapaty: “In a couple of
> years,
> when a larger resource base builds up, the cost structure in China will
> be
> lower than India by at least 15-20 per cent.”
> 
> Nasscom president Dewang Mehta predicts that Indian IT firms will
> probably
> start out with re-routing their low-end activities, like coding and
> maintenance, to Chinese branch offices or subsidiaries.
> 
> Aptech managing director Ganesh Natarajan says China can, in the long
> run,
> also become a large farm for IT-enabled services and high-end software
> development work.
> 
> Indian software exports are projected to touch $80 billion by the year
> 2008,
> and this will require a resource pool of 2 million IT professionals.
> 
> © The Economic Times Online. All rights reserved.
> 
> 
> 
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This is the National Debate on System Reform.       debate@indiapolicy.org
Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/
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