Just curious #5 – Tamed at home?

Why is it that none of the huge IT outsourcing deals (IBM eyes $ 1.5 bn with Reliance) announced by domestic companies go to the so called big Indian IT firms? Not enough expertise in telecom domain (Idea, Bharati-Airtel, now Reliance Comm)? Not competent enough for deals this big in size? Or is it simply a case of Indians mistrusting Indians, or as they say in Hindi – Door ke dhol suhavane (translation – drums played far away sound better)?

Bad joke and not a perfect analogy, but hope the IT story doesn’t turn out like cricket – poor domestic league could harm international competence!


4 Responses

  1. Hi,

    I have been observing the move of IT Companies in India for a while. I guess the issue is not competancy, but the focus on customers. Indian IT Companies are focusing more on overseas client, while the entire world has acknowledged the growth in the Indian market and venturing in India.

    The Indian companies should have a better grip in the local market as they should know the domestic market better than anyone..

    Have a look at few related articles I have posted in my blog http://fusions.wordpress.com.

    Ramesh Natarajan
    Finance Systems Professional

  2. Ramesh,
    If your analysis is right, the same Indian IT (services) companies should stop preaching their employees & others to make software products. The biggest factor, IMHO, why we don’t see a lot of products coming out of India is lack of domestic market for IT. If you don’t have access to real world, you don’t see real problems (read opportunities).

  3. Ramesh, I think trusting foreign names over local ones too has a role to play. Plus, domestic IT outsourcing firms (HCL, WIPRO, TCS) don’t have that many huge contracts to show for yet.

    Raghu, products versus services is a separate debate. Our industry preferred services for whatever reasons (small and still-maturing local market, not as easy accessing capital, risk-averse mindset) when the IT boom started. But when there are big opportunities in the area our industry preferred to specialize in, why not grab them?

    Whether IBM/Accenture gets these huge contracts or local firms, it would eventually be local engineers manning and managing it, isn’t it? Sounds so strange, but that is globalization for you.

  4. Being an insider, i have found that the Big 6 are not really interested in the Indian market – allowing the IBMs/Accentures/EDS to grab the action. My personal feel is that these deals call for a different set of skills which the Big 6 (TCS, Infy, Wipro, Cognizant, HCL, Satyam) do not possess; Also the $ is still all aluring and easier to deal with. In fact its only new that our european focus is increasing ( ~75 : 25) for these folks. Asia Pac is not big either and India surely at the bottom of our focus.

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