Friday, February 16, 2007

India's Competitiveness -Flatten the World through technology and offshoring

I have many friends in the IT services sector who have this belief that someday India will lose its cost arbitrage advantage and the growth of IT services would really come down , slowing down the economy in general . What might probably happen that the rate of growth may see some correction , but overall we have scratched only the surface of professional services .

It is imperative to ask ourselves why is the Indian offshore model has been applied only to professional services like the IT services, while there are other huge businesses like payroll processing, outsourcing services like Learning Management , Talent Development , Supply chain management (ex-UPS)

I believe the it is time to flatten the world further and use our Technology prowess to continue build our competitiveness . It is interesting to note that Unilever has outsourced its Learning Management and some other Hr processes to Accenture at a fee of USD 1 bn (check out Accenture Learning Systems
http://www.accenture.com/Global/Services/By_Subject/Business_Process_Outsourcing/Accenture_Learning/default.htm).

While this is not a fully offshoring process but am sure India can provide content development and management service to large organizations . The question is who takes the lead....... and look at areas beyond IT services , the time has come to take the process of flattening to the next orbit.

Also check out (http://thinkflat.infosys.com/why-think-flat_perspectives.asp) for additional perspectives

2 comments:

sunny said...
This comment has been removed by the author.
sunmay said...

I totally agree sir ! With phillipines and China catching up we shall not be having the cost advantage for too long...we definitely need to reposition ourself... our past expertise would bolster our prospects into diversification into the service sector.. the need of the hour is to break the ice.. to look for more. With increasing globalisation companies would soon feel the need for same ...