About a year ago, I had written about why offshore IT captives don’t work [link]. Now I hear that the companies that had set up captives in India are rushing to get rid of them. Except that there is a curious twist. They want to be paid to rid themselves of their mismanaged captives. More »
Tags: India IT ServicesThe Indian IT Services industry is going to feel the pain of the US recession which is likely to spread to other major markets as well. This recession is going to be different as I have said before.
What do you do, when you are faced with a near certain slow down? You can try and squeeze whatever juice you can out of your as-is business, but that will take you only so far. Or you can choose to breathe some new life into your value prop and perhaps change the trajectory of your company. More »
Tags: IT ServicesThe last twelve months have been ugly for IT Services stocks. As an industry it was probably the worst performing industry in the Indian stock market. The chart below of Infosys vs. Sensex makes the point better than I can ever describe it.
Source: Bloomberg.com
Going by last year’s results for the bigger players, this deep dive was not quite deserved. More »
Tags: IT ServicesMost commentators put a high probability on the US going into a recession. What began with a problem of imprudent housing loans in the US has snow balled into a crisis for the Financial Services industry and an almost certain slowdown in consumer spending. How this impacts the Indian IT Services industry requires some analysis. More »
Tags: Flatworld, India, IT ServicesIs the Indian IT Services party over? Is a decade of growth and wealth creation coming to an end? And if that is so, what can we read in the tea leaves.
There are three fundamental reasons why the IT Services industry finds itself in a challenging environment. One, the dollar-rupee rate. Two, wage growth. And three, slower revenue growth. More »
Tags: India, IT ServicesRecently Forrester Research released a report that says that offshore captives, which have been much in vogue for the last three years, are “imploding”. A blog post here makes for interesting reading, especially the comments. More »
Tags: Flatworld, India, IT ServicesThis year the INS received 150,000 H1-B visa applications for the coming year starting in October, on the first day that it started accepting applications - for a total of 65,000 visas! An article in the New York Times takes a look at the issues surrounding this. A table from the same article reproduced below gives you the breakup of the visas requested by company. Indian IT Services companies are the only companies at the top of the list.
Tags: Flatworld, India, IT ServicesSujai Karampuri in Need Product Companies for India’s Growth makes an unconvincing case for encouraging the high tech industry in India. On the way he quotes data on the IT Services industry to prove his point that More »
Tags: India, IT Services, TechnologyA few years ago, I wrote a piece on Rediff titled “Who Needs Software Products”. The Rediff business editor at that time added “…Services are Prime” to the title and totally took the punch out of it, but that’s a different matter (one of the reasons I decided to do my own blog!)
Anyway, in that article I posited the following: More »
Tags: Flatworld, IndiaTaking up from where I left off last week. Based upon the analysis it appears that the dramatic growth in the IT Services industry in India is the primary force in shaping the Indian techie. The Indian techie is a bright person who did well in college, but even after a few years in the industry, is low on technical depth. Before he can really sink his teeth into something, he is pulled into project management. Not because Indians or Indian companies don’t care about technical depth, but because if they have to meet demand and grow, they have no choice. And to paraphrase Gordon Gekko in the movie Wall Street – Growth is good.
A study in contrasts is that other techie – the American techie. More »
Tags: India, IT Services, Technology