Comments on: Growth and the IT Services Pyramid http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/ Meandering Musings on Globalization Tue, 07 Feb 2012 21:29:39 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Basab Pradhan http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17733 Basab Pradhan Thu, 22 Apr 2010 02:00:22 +0000 http://6ampacific.com/?p=776#comment-17733 test test

]]> By: Shankar http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17688 Shankar Sun, 18 Apr 2010 07:22:36 +0000 http://6ampacific.com/?p=776#comment-17688 Basab, This is an across the board problem happening in services companies. I feel number of years can be one of the criteria to perform a job. However it's the ability and the potential of the person should be the strongest factor in providing the opportunity. This can be achieved with a strong apprisal system and also coaching provided to the managers who appraise the employees. This problem can also be minimized by providing a technical/subject matter expert career track in an organization with a similar growth path to general management path. Basab,
This is an across the board problem happening in services companies. I feel number of years can be one of the criteria to perform a job. However it's the ability and the potential of the person should be the strongest factor in providing the opportunity. This can be achieved with a strong apprisal system and also coaching provided to the managers who appraise the employees. This problem can also be minimized by providing a technical/subject matter expert career track in an organization with a similar growth path to general management path.

]]> By: Anurag http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17613 Anurag Tue, 13 Apr 2010 10:17:36 +0000 http://6ampacific.com/?p=776#comment-17613 Basab, the model is spot on. Last year was probably the first year of discontent in the Indian IT services industry, at a very large scale. What becomes imperative now is 1. Large services companies need to move to a non-linear growth model, to improve revenue productivity and increase compensation (I believe additional compensation would be the reward required by a star employee, for a slower career growth path). There is not much headroom left for major salary hikes in the current model of USD 4000-6000 per month blended revenue productivity 2. Large companies need to be more dependent on intellectual property and platform based services going fwd, basically a corollary to 1 3. A huge surge in entrepreneurship in India, in the next few years, fueled by a greater 'absolute' number of disgruntled employees. Basab, the model is spot on. Last year was probably the first year of discontent in the Indian IT services industry, at a very large scale.

What becomes imperative now is

1. Large services companies need to move to a non-linear growth model, to improve revenue productivity and increase compensation (I believe additional compensation would be the reward required by a star employee, for a slower career growth path). There is not much headroom left for major salary hikes in the current model of USD 4000-6000 per month blended revenue productivity

2. Large companies need to be more dependent on intellectual property and platform based services going fwd, basically a corollary to 1

3. A huge surge in entrepreneurship in India, in the next few years, fueled by a greater 'absolute' number of disgruntled employees.

]]> By: Dip http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17606 Dip Mon, 12 Apr 2010 19:09:51 +0000 http://6ampacific.com/?p=776#comment-17606 When the volume rather ratio of promotion goes down organizations have to look at the appraisal process differently. Does the appraisal rating really depict the performance or potential? Do they add too many irrelevant points for the sake of filtering and try to pass it under the carpet of performance based evaluation. For lack of better models most large organizations turn to quota and bell curve fitment which strictly discourages people to break comfort zone or question status quo. I wonder if a seniority based approach like public service can do any further disservice. When the volume rather ratio of promotion goes down organizations have to look at the appraisal process differently. Does the appraisal rating really depict the performance or potential? Do they add too many irrelevant points for the sake of filtering and try to pass it under the carpet of performance based evaluation. For lack of better models most large organizations turn to quota and bell curve fitment which strictly discourages people to break comfort zone or question status quo. I wonder if a seniority based approach like public service can do any further disservice.

]]> By: Krishna http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17602 Krishna Mon, 12 Apr 2010 18:07:35 +0000 http://6ampacific.com/?p=776#comment-17602 Basav, great point... But then there is Abraham Maslow's Need Hierarchy theory that will soon creep into the well-paid developer's psyche. He sees the Junior PM getting sponsorship for a management course and other such hierarchy based fringe benefits. That's when reality dawns on the developer and soon he'll become the walking wounded. Overall effect could be organization anarchy because salary is not just a recognition for relative degree of skill, it's also a barometer that helps you gauge people that you may look up to and those that you may look down upon...!!! Basav, great point… But then there is Abraham Maslow's Need Hierarchy theory that will soon creep into the well-paid developer's psyche. He sees the Junior PM getting sponsorship for a management course and other such hierarchy based fringe benefits. That's when reality dawns on the developer and soon he'll become the walking wounded. Overall effect could be organization anarchy because salary is not just a recognition for relative degree of skill, it's also a barometer that helps you gauge people that you may look up to and those that you may look down upon…!!!

]]> By: Manoj Philip Mathen http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17595 Manoj Philip Mathen Mon, 12 Apr 2010 02:53:07 +0000 http://6ampacific.com/?p=776#comment-17595 Agree 100%. Lack of Senior Developers can be solved by retaining them. Demarcate the Management stream from the technical stream. Pay the senior Developers more than the Just started PM. Technical skill will flourish. Agree 100%. Lack of Senior Developers can be solved by retaining them. Demarcate the Management stream from the technical stream. Pay the senior Developers more than the Just started PM. Technical skill will flourish.

]]> By: Basav http://6ampacific.com/2010/04/10/growth-and-the-it-services-pyramid/comment-page-1/#comment-17594 Basav Sun, 11 Apr 2010 21:06:30 +0000 http://6ampacific.com/?p=776#comment-17594 A suggested solution is to pay more to the senior developers. Like more pay to the Senior Techlead than to the junior PM. This way, skilled resources will still continue doing the technical work. Indian companies should stop relating the hikes and compensation to the roles. As in US companies they should start valuing the skill set of the employees and pay them accordingly. the real concern with the employees is that if they dont get promoted they dont get substantial hike. So even if an employee wants to stick to being a developer he cannot afford it because he will lose out on hike. A suggested solution is to pay more to the senior developers. Like more pay to the Senior Techlead than to the junior PM. This way, skilled resources will still continue doing the technical work.
Indian companies should stop relating the hikes and compensation to the roles. As in US companies they should start valuing the skill set of the employees and pay them accordingly. the real concern with the employees is that if they dont get promoted they dont get substantial hike. So even if an employee wants to stick to being a developer he cannot afford it because he will lose out on hike.

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