Perot Systems (NYSE: PER), the Plano, Texas-based IT, BPO and consulting concern, is expected to underscore the importance of India and the Asia-Pacific region to its long-term growth strategy at a meeting of its Board of Directors in Bangalore later this week. The meeting is historic, as it is probably the first Board meeting of a major U.S. multinational IT corporation in India. In bringing the Board to India to review its corporate strategy, Perot Systems is signaling its commitment to seizing the global opportunities in the technology services industry.
As part of that commitment, Perot Systems now holds land for future expansion of its existing facilities, which are in Bangalore, Noida and Chennai. The company has 13 acres of land in Bangalore, 25 acres in Noida and recently significantly expanded its facilities in Chennai. These significant holdings highlight the company's focus on India as a key driver for business and as a source of talent. Perot Systems is fully aware of India's competitive human resource pool and diverse skill-sets and hence plans an aggressive recruitment posture, casting a wider net and looking at a broader spectrum of colleges and universities across the country. This, coupled with land banking, will provide scalability for future growth.
Other highlights of the India visit included the announcement and official induction of Mr. Anuroop (Tony) Singh (Member, Board of Directors) and Ms. Padma Ravichander (Senior Executive - India/Asia-Pacific Region, Managing Director - Technology Services) into Perot Systems.
Commenting on the emergent business opportunities for India, Mr. Ross Perot Jr., Chairman - Perot Systems said, "The Board of Directors of Perot Systems is here as a result of the hard work that has gone into building a strong global business. The company has achieved a lot in a relatively short time frame, but in many ways we are only just beginning to reach our potential, given the opportunities before us and the strength of our capabilities -- especially in India."
Perot systems President and CEO Peter Altabef said, "Perot Systems'' India operations are a cornerstone of our emerging global delivery model of integrated IT, BPO and consulting solutions. It is important for the Board to meet here as work to provide more solutions for our customers, opportunity for our employees, and value for our shareowners."
Source : Media Release Compiled by : Abijith I P
Saturday, April 02, 2005
Quarter million more BPO jobs by 2009
Call centre markets of India and the Philippines are set to see further boom through 2009, a study says.
The report, "The Future of Contact Center Outsourcing in India and the Philippines", published by Data monitor, an American analyst firm, predicts that over 2,50,000 new call center agent positions will be created in two countries by 2009.
And Philippines will be poaching the market increasingly, which India currently dominates.
USA and UK are the biggest clients in the call center industry. According to Data monitor, both India and the Philippines will see substantial growth in call centers.
With the US presidential elections are out of the way, US businesses will now be able to ramp up their offshore operations, via call centres, the report also said.
More firms are set to follow the likes of British Airways, Citibank, General Electric and HSBC, all of which have spun off a part or all of their operations to India. "Outsourcing providers are competing to run entire customer processes for their clients, rather than merely the voice-based call centre part," said Ryan Powell, call centre analyst at Datamonitor and author of the study.
"The fact that they are able to win this kind of work is testament to the efforts that have been placed on assuring quality control over the past year or so," Powell said.
Source : PTI Compiled by : Abijith I P
The report, "The Future of Contact Center Outsourcing in India and the Philippines", published by Data monitor, an American analyst firm, predicts that over 2,50,000 new call center agent positions will be created in two countries by 2009.
And Philippines will be poaching the market increasingly, which India currently dominates.
USA and UK are the biggest clients in the call center industry. According to Data monitor, both India and the Philippines will see substantial growth in call centers.
With the US presidential elections are out of the way, US businesses will now be able to ramp up their offshore operations, via call centres, the report also said.
More firms are set to follow the likes of British Airways, Citibank, General Electric and HSBC, all of which have spun off a part or all of their operations to India. "Outsourcing providers are competing to run entire customer processes for their clients, rather than merely the voice-based call centre part," said Ryan Powell, call centre analyst at Datamonitor and author of the study.
"The fact that they are able to win this kind of work is testament to the efforts that have been placed on assuring quality control over the past year or so," Powell said.
Source : PTI Compiled by : Abijith I P
India following America in jobless growth – in 2003-04 Indian corporations eliminated 3.1% manufacturing jobs with healthy growth in the economy
Indian corporations eliminated 3.1% manufacturing jobs while the economy grew a healthy 6 to 7% in that time frame. While the Information technology and Business Process Outsourcing created jobs, even including these jobs, the country lost 0.6% jobs.
The fact that the country lost jobs while growing at a brisk pace is scary. In United States the labor cost is high. Automation and Productivity rise make sense. But with already deflated labor cost in India, it does not make sense to lose jobs while the economy is growing. Experts are asking questions – what will happen if India hits a recession, which is very probable later this year. According to some, if a recession hits, India can lose in excess of 12% manufacturing jobs and 6% overall jobs. If the Western nations go into recession at the same time, outsourcing industry can actually lose a staggering 38% jobs and the country can lose close to 46% jobs. Hopefully nothing like that will happen. But just focusing and servicing on IT and Business Process Outsourcing can be catastrophic.
According to media reports in India, all is not that gloomy.
The services sector, in particular, created plenty of jobs, particularly in software and private banks. IT companies in software, hardware and data sourcing, created more jobs than any other sector: 26 IT companies increased their staff strength by 45,872 or 39.5 per cent, taking the headcount in the IT industry to 161,882 in 2003-04.
Private banks, which are expanding their retail business reach, added 5,551 employees.
Infosys Technologies remained the largest single recruiter in 2003-04, adding 7,988 IT engineers and managerial staff. Wipro added 7,422 employees, while TCS increased its headcount by 4,607 to 30,121.
Satyam Computer and HCL Technologies increased their manpower by over 4,000 each, while Digital GlobalSoft and ICICI Bank increased their staff strength by over 2,500 each.
Source : Indiadaily.com - Sunil Sen Compiled by : Abijith I P
The fact that the country lost jobs while growing at a brisk pace is scary. In United States the labor cost is high. Automation and Productivity rise make sense. But with already deflated labor cost in India, it does not make sense to lose jobs while the economy is growing. Experts are asking questions – what will happen if India hits a recession, which is very probable later this year. According to some, if a recession hits, India can lose in excess of 12% manufacturing jobs and 6% overall jobs. If the Western nations go into recession at the same time, outsourcing industry can actually lose a staggering 38% jobs and the country can lose close to 46% jobs. Hopefully nothing like that will happen. But just focusing and servicing on IT and Business Process Outsourcing can be catastrophic.
According to media reports in India, all is not that gloomy.
The services sector, in particular, created plenty of jobs, particularly in software and private banks. IT companies in software, hardware and data sourcing, created more jobs than any other sector: 26 IT companies increased their staff strength by 45,872 or 39.5 per cent, taking the headcount in the IT industry to 161,882 in 2003-04.
Private banks, which are expanding their retail business reach, added 5,551 employees.
Infosys Technologies remained the largest single recruiter in 2003-04, adding 7,988 IT engineers and managerial staff. Wipro added 7,422 employees, while TCS increased its headcount by 4,607 to 30,121.
Satyam Computer and HCL Technologies increased their manpower by over 4,000 each, while Digital GlobalSoft and ICICI Bank increased their staff strength by over 2,500 each.
Source : Indiadaily.com - Sunil Sen Compiled by : Abijith I P
Indian companies start providing technical know how for Pakistani BPO and IT companies – start of a new trend!
A midsize IT and BPO Company from Mumbai has entered into an agreement with a Pakistani firm to set up a call center in Pakistan.
According to media sources, Mumbai-based Spanco Telesystems and Solutions will help Millennium Software of Pakistan to set up and manage the call centre in Karachi for the latter's international and domestic customers. The call centre will provide complete customer relations management (CRM) solutions for Pizza Hut in Pakistan.
"We will provide know-how for setting up the call centre and also advise Millennium Software for operations, human resource practices and training," Ketan Choksi, chief financial officer of Spanco Telesystems, said.
"As the relationship matures between the two companies in the coming years, we will also look into the possibility of expanding the areas of business cooperation," he added.
This is not an isolated case. Many Pakistani companies are looking at Indian companies to provide the technical know how to jump ahead in the field of IT, call center operations and BPO in general.
Source : Indiadaily.com - Prabeer Laha Compiled by : Abijith I P
According to media sources, Mumbai-based Spanco Telesystems and Solutions will help Millennium Software of Pakistan to set up and manage the call centre in Karachi for the latter's international and domestic customers. The call centre will provide complete customer relations management (CRM) solutions for Pizza Hut in Pakistan.
"We will provide know-how for setting up the call centre and also advise Millennium Software for operations, human resource practices and training," Ketan Choksi, chief financial officer of Spanco Telesystems, said.
"As the relationship matures between the two companies in the coming years, we will also look into the possibility of expanding the areas of business cooperation," he added.
This is not an isolated case. Many Pakistani companies are looking at Indian companies to provide the technical know how to jump ahead in the field of IT, call center operations and BPO in general.
Source : Indiadaily.com - Prabeer Laha Compiled by : Abijith I P
Outsourcing's Next Phase Has Begun
Outsourcing in India has reached a near-term peak, and meaningful expansion from this point forward will result in higher costs and lower-quality delivery. Business leaders in Asia have been saying such things to one another for months now. Today, we are seeing deliberate action to move capacity from India to next-step destinations like the Philippines, China and Vietnam.
Even major business publications have picked up on the evolving situation. Both Forbes ("India: Good Help Is Hard to Find") and BusinessWeek ("India's IT Challenge") recently published feature articles that directly address the growing problems in India and the viability of the next-step destination countries.
Looking at current events in the Philippines, we can get a better idea what is going on. Sykes, a large U.S.-based contact center and IT support organization, has operations in both India and the Philippines. The company said it would shift much of its Indian capacity to the Philippines, where it already has 7,000 employees. "We moved calls to other facilities in Asia to get a higher rate of return," was the official statement from Dan Hernandez, Sykes'' vice president for global strategies. But knowledgeable observers in the region say that the rate of return differential must be large for a company of Sykes'' size and prominence to forgo India after already putting capacity in place.
Ambergris Solutions is another large contact center organization with operations in the Philippines. The company just received a $43.5 million investment through Telus International, a Canada-based global IT provider. Jim Evans, who played the key local role in coordinating the deal, says his company wanted a "strategic investment" in the outsourcing industry in Asia, and the Philippines offered the best long-term opportunity given all the options, including India.
As Asia-Pacific vice president for global business-to-business services provider GXS, Victor Lee oversees the professional and customer services operations in the region. His company made the decision to direct functions with a strong customer component to the Philippines because of better economics and results there. His company's analysis also indicated that costs were increasing disproportionately in India. As well, Lee feels that "having product development in India and professional and customer services in Philippines reduces risks."
More outspoken than most, Rick McGonegal is clear that India won''t be part of his company's plans for the foreseeable future. He is the managing director of RCG Information Technology, another good-size IT provider. The company already has a strong offshore presence in the Philippines and has assessed the Asia-Pacific region for future expansion. India, he feels, is already too crowded, with numerous companies all scrambling to hire from each other. The result is destructively high staff turnover rates, mounting salary costs and poorer English communications skills compared with that available in the Philippines. He also cited overstretched infrastructure in India as a further reason RCG wouldn''t consider this destination at present. According to McGonegal, his company has its "radar set on Vietnam and China" should its current best option of the Philippines give way.
Others that appear to be moving work to the Philippines include Hewitt, which has just started hiring staff for its newly commissioned business process outsourcing facility, and HSBC, the global banking organization, which got its BPO under way a few months ago. I am currently meeting with numerous early-stage entrants to the Philippines -- more than at anytime during the past three years.
As another anecdote, I spoke recently to the Texas-based global recruitment manager of a multinational technology company who needed help attracting Indians living in the U.S. and Canada to jobs back in India. This is no surprise, since there is strong demand for returnee management talent. But this fellow wasn''t looking for managers; he was looking for individual contributors with three years of Java/C++ experience -- a core skill that was once available in seemingly infinite quantities. He described, with great exasperation, the challenges his company faced hiring such people within India these days.
Long Live the King
No one is saying that the king of outsourcing will lose its dominance or its long-term attractiveness as an outsourcing destination. India created the offshore outsourcing model, and it will continue driving the industry forward because of its huge size and the remarkable competence of its managers.
If India does experience slower growth because of constrained resources in the near term, it is only because of its tremendous success over the past few years. India's recent hiring growth has been roughly double that of the crazy dot-com boom times in North America. So, current alleged constraints aren''t indicative of weakness but of great success.
Besides, while rising costs may be a big deal to business leaders who have to somehow budget for them, they probably don''t warrant the same degree of concern for individual workers, who see their paychecks rise by 30% from a well-timed job change.
If countries like the Philippines and Vietnam are better options today, it's only because they have been less successful at developing and attracting quality outsourcing employers in the past. The pioneering accomplishments made by India have now opened the door for these countries to receive their share of the blessings. And as for India, we can be sure it will soon be back stronger than ever.
Source : Richard Mills, CFA, is director of executive search firm Chalre Associates, based in Manila Compiled by : Abijith I P
Even major business publications have picked up on the evolving situation. Both Forbes ("India: Good Help Is Hard to Find") and BusinessWeek ("India's IT Challenge") recently published feature articles that directly address the growing problems in India and the viability of the next-step destination countries.
Looking at current events in the Philippines, we can get a better idea what is going on. Sykes, a large U.S.-based contact center and IT support organization, has operations in both India and the Philippines. The company said it would shift much of its Indian capacity to the Philippines, where it already has 7,000 employees. "We moved calls to other facilities in Asia to get a higher rate of return," was the official statement from Dan Hernandez, Sykes'' vice president for global strategies. But knowledgeable observers in the region say that the rate of return differential must be large for a company of Sykes'' size and prominence to forgo India after already putting capacity in place.
Ambergris Solutions is another large contact center organization with operations in the Philippines. The company just received a $43.5 million investment through Telus International, a Canada-based global IT provider. Jim Evans, who played the key local role in coordinating the deal, says his company wanted a "strategic investment" in the outsourcing industry in Asia, and the Philippines offered the best long-term opportunity given all the options, including India.
As Asia-Pacific vice president for global business-to-business services provider GXS, Victor Lee oversees the professional and customer services operations in the region. His company made the decision to direct functions with a strong customer component to the Philippines because of better economics and results there. His company's analysis also indicated that costs were increasing disproportionately in India. As well, Lee feels that "having product development in India and professional and customer services in Philippines reduces risks."
More outspoken than most, Rick McGonegal is clear that India won''t be part of his company's plans for the foreseeable future. He is the managing director of RCG Information Technology, another good-size IT provider. The company already has a strong offshore presence in the Philippines and has assessed the Asia-Pacific region for future expansion. India, he feels, is already too crowded, with numerous companies all scrambling to hire from each other. The result is destructively high staff turnover rates, mounting salary costs and poorer English communications skills compared with that available in the Philippines. He also cited overstretched infrastructure in India as a further reason RCG wouldn''t consider this destination at present. According to McGonegal, his company has its "radar set on Vietnam and China" should its current best option of the Philippines give way.
Others that appear to be moving work to the Philippines include Hewitt, which has just started hiring staff for its newly commissioned business process outsourcing facility, and HSBC, the global banking organization, which got its BPO under way a few months ago. I am currently meeting with numerous early-stage entrants to the Philippines -- more than at anytime during the past three years.
As another anecdote, I spoke recently to the Texas-based global recruitment manager of a multinational technology company who needed help attracting Indians living in the U.S. and Canada to jobs back in India. This is no surprise, since there is strong demand for returnee management talent. But this fellow wasn''t looking for managers; he was looking for individual contributors with three years of Java/C++ experience -- a core skill that was once available in seemingly infinite quantities. He described, with great exasperation, the challenges his company faced hiring such people within India these days.
Long Live the King
No one is saying that the king of outsourcing will lose its dominance or its long-term attractiveness as an outsourcing destination. India created the offshore outsourcing model, and it will continue driving the industry forward because of its huge size and the remarkable competence of its managers.
If India does experience slower growth because of constrained resources in the near term, it is only because of its tremendous success over the past few years. India's recent hiring growth has been roughly double that of the crazy dot-com boom times in North America. So, current alleged constraints aren''t indicative of weakness but of great success.
Besides, while rising costs may be a big deal to business leaders who have to somehow budget for them, they probably don''t warrant the same degree of concern for individual workers, who see their paychecks rise by 30% from a well-timed job change.
If countries like the Philippines and Vietnam are better options today, it's only because they have been less successful at developing and attracting quality outsourcing employers in the past. The pioneering accomplishments made by India have now opened the door for these countries to receive their share of the blessings. And as for India, we can be sure it will soon be back stronger than ever.
Source : Richard Mills, CFA, is director of executive search firm Chalre Associates, based in Manila Compiled by : Abijith I P
Unisys and Cognizant to add 10,500 more to their India outsourcing workforce
IT services major Cognizant Technology Solutions, today said it would hire 6500 people in the next nine months and announced that its Chinese centre would start operations in April. Addressing a news conference here, Lakshmi Narayanan, President and CEO, Cognizant, said the company planned to add 7,200 employees in the 2005 calender year, of which 85 per cent would be employed at its software development centres in India. "During the first two-and-a-half months of this calender, we have hired 700 people. In the remaining months, we will add another 6,500 people," he said, adding that the total employee strength of the company would exceed 22,500 by December 31, 2005. In 2004, Cognizant hired 6000 people. On the Chinese operations, Narayanan said the company's new development centre at Shanghai would commence operations next month. About six Chinese persons are currently undergoing training in Cognizant's Chennai office. Narayanan said about 25 local people would manage the facility. In 2007-08, Cognizant would consider ramping up its operations in China, he said. On the revenue front, he said Cognizant was aiming at USD 845 million for the 2005 calender, a growth of 44 per cent compared to 2004.
American IT services and product firm Unisys Corporation plans to ramp up its India workforce, including with its partners, to 4,500 by 2008, up from the existing 1,150 professionals, Unisys officials said on Monday. "Unisys has sourced globally for more than 25 years. Our current expansion in India is an extension of this strategy and is integral to growing our global capabilities," Unisys Chairman Lawrence A Weinbach said at the launch of its 1,000 seat new building in the city. Unisys outsources software work with four Indian partners - Hexaware, Caritor, NIIT and Tata Infotech - who jointly employ about 1,000 people. "The partners will add 1,000 more people while we will hire 1,000 more people in 2005," Unisys India Managing Director Mukul Agrawal said. He said Unisys has a roadmap to reach a strength of 4,500 people by 2008, which includes 2,500 people at its captive centre. "India offers lower cost of operations and there is a demand from our clients to move work to offshore locations," Unisys Global Sourcing Vice President Cal Killen said. Unisys last April said it would invest $180 million (Rs 810 crore) in India till 2008 and it has spent $10 million on the new facility, officials said. Unisys India will provide end-to-end IT services for its global customers, besides technical help desk support, BPO and IT sourcing.
Source : Media Release Compiled by : Abijith I P
American IT services and product firm Unisys Corporation plans to ramp up its India workforce, including with its partners, to 4,500 by 2008, up from the existing 1,150 professionals, Unisys officials said on Monday. "Unisys has sourced globally for more than 25 years. Our current expansion in India is an extension of this strategy and is integral to growing our global capabilities," Unisys Chairman Lawrence A Weinbach said at the launch of its 1,000 seat new building in the city. Unisys outsources software work with four Indian partners - Hexaware, Caritor, NIIT and Tata Infotech - who jointly employ about 1,000 people. "The partners will add 1,000 more people while we will hire 1,000 more people in 2005," Unisys India Managing Director Mukul Agrawal said. He said Unisys has a roadmap to reach a strength of 4,500 people by 2008, which includes 2,500 people at its captive centre. "India offers lower cost of operations and there is a demand from our clients to move work to offshore locations," Unisys Global Sourcing Vice President Cal Killen said. Unisys last April said it would invest $180 million (Rs 810 crore) in India till 2008 and it has spent $10 million on the new facility, officials said. Unisys India will provide end-to-end IT services for its global customers, besides technical help desk support, BPO and IT sourcing.
Source : Media Release Compiled by : Abijith I P
Oracle and Peoplesoft operations in India to be merged by June
Integration of operations of Oracle and PeopleSoft in India will be completed by the end of June this year.
"Full integration of operations of Oracle and PeopleSoft will be done by June end," Derek Williams, Oracle's Executive Vice-president for Asia-Pacific, said in a conference call.
Oracle had acquired PeopleSoft late last year and both companies have significant operations in India.
"All the operations of the two companies in India will be integrated by June end," a company spokesperson said.
So far, the merger of six of the 26 offices of both companies in Asia-Pacific has been completed.
After the merger, Oracle retained more than 75 per cent of the sales, marketing, consulting and back office staff of PeopleSoft in Asia-Pacific.
On the support and development side, the company has retained 90 per cent of the staff.
Going forward, Oracle sees India, China and Australia as key growth markets in Asia-Pacific.
"India is an important market for us and we continue to invest heavily in it. Development centres in India are churning out as many patents as the ones in the US," he said.
For growth, the company plans to focus on quality and execution and concentrate on financial sector, manufacturing, government, education, media, telecom and retail.
The focus for Oracle worldwide is business application software market where it wants to get the better of SAP.
Through acquisition of PeopleSoft and Retek it is building scale and solutions to take on the German giant.
Williams said Oracle has done well against SAP in India and made good progress.
"We are pleased with our strategy in India in application space," he said.
Source : PTI Compiled by : Abijith I P
"Full integration of operations of Oracle and PeopleSoft will be done by June end," Derek Williams, Oracle's Executive Vice-president for Asia-Pacific, said in a conference call.
Oracle had acquired PeopleSoft late last year and both companies have significant operations in India.
"All the operations of the two companies in India will be integrated by June end," a company spokesperson said.
So far, the merger of six of the 26 offices of both companies in Asia-Pacific has been completed.
After the merger, Oracle retained more than 75 per cent of the sales, marketing, consulting and back office staff of PeopleSoft in Asia-Pacific.
On the support and development side, the company has retained 90 per cent of the staff.
Going forward, Oracle sees India, China and Australia as key growth markets in Asia-Pacific.
"India is an important market for us and we continue to invest heavily in it. Development centres in India are churning out as many patents as the ones in the US," he said.
For growth, the company plans to focus on quality and execution and concentrate on financial sector, manufacturing, government, education, media, telecom and retail.
The focus for Oracle worldwide is business application software market where it wants to get the better of SAP.
Through acquisition of PeopleSoft and Retek it is building scale and solutions to take on the German giant.
Williams said Oracle has done well against SAP in India and made good progress.
"We are pleased with our strategy in India in application space," he said.
Source : PTI Compiled by : Abijith I P
Need for reengineering IT outsourcing – will TCS and Satyam chiefs elected as NASSCOM leaders be able to save Indian outsourcing boom?
What happens when a technology become dinosaur? Yes we call it the legacy system. India’s IT outsourcing has become a genuine “vintage car” – better put a legacy system waiting for a complete reengineering. The lack of talent, rising prices and lack of innovative products is hitting Indian IT companies hard. How long can you survive on exploiting cheap labor opines experts and International outsourcing pundits.
Indian IT needs new leadership. Otherwise India IT Outsourcing Inc. will face the same stagnation that Microsoft faces. Tata Consultancy Services (TCS) chief S. Ramadorai was on Thursday appointed chairman of the National Association of Software and Service Companies (Nasscom), the country's IT industry umbrella group. B. Ramalinga Raju, chairman of Hyderabad-based software maker Satyam Computer Services, was appointed vice chairman of Nasscom for fiscal 2005-06. The million dollar question is can these old guns who created the legacy of “taking someone else’s requirements and sit and write code blindly” be able to guide India into the next phase of software engineering?
In Europe and America, Oracle (Peoplesoft) and SAP faces a strange newborn competition from smaller companies that they never thought about. Large back office processing systems based on large traditional databases are being challenged by smaller Web based tools from companies one hundredth the size. India’s outsourcing will be now slowly replaced by US and European companies that have mastered the techniques of software engineering productivity in the last few years. Three or four very talented software engineers who also understand business and systems analysis can replace fifty Indian coders. The software engineering field is finally going through the maturity process where coding and traditional testing is replaced with business and systems analysis driven system generation through “configurations”. The new technology is astounding and will employ far less people but those who will work as software engineers will make four times what they make today.
Can Ramadorai of TCS and Raju of Satyam provide that kind of forward looking leadership as India faces the competition storm from all directions? Experts say these legacy systems reengineering experts will provide traditional leadership but will need others in their team to really compete with smaller and sharper companies from America and Europe.
Source : IndiaDaily.com Compiled By : Abijith I P
Indian IT needs new leadership. Otherwise India IT Outsourcing Inc. will face the same stagnation that Microsoft faces. Tata Consultancy Services (TCS) chief S. Ramadorai was on Thursday appointed chairman of the National Association of Software and Service Companies (Nasscom), the country's IT industry umbrella group. B. Ramalinga Raju, chairman of Hyderabad-based software maker Satyam Computer Services, was appointed vice chairman of Nasscom for fiscal 2005-06. The million dollar question is can these old guns who created the legacy of “taking someone else’s requirements and sit and write code blindly” be able to guide India into the next phase of software engineering?
In Europe and America, Oracle (Peoplesoft) and SAP faces a strange newborn competition from smaller companies that they never thought about. Large back office processing systems based on large traditional databases are being challenged by smaller Web based tools from companies one hundredth the size. India’s outsourcing will be now slowly replaced by US and European companies that have mastered the techniques of software engineering productivity in the last few years. Three or four very talented software engineers who also understand business and systems analysis can replace fifty Indian coders. The software engineering field is finally going through the maturity process where coding and traditional testing is replaced with business and systems analysis driven system generation through “configurations”. The new technology is astounding and will employ far less people but those who will work as software engineers will make four times what they make today.
Can Ramadorai of TCS and Raju of Satyam provide that kind of forward looking leadership as India faces the competition storm from all directions? Experts say these legacy systems reengineering experts will provide traditional leadership but will need others in their team to really compete with smaller and sharper companies from America and Europe.
Source : IndiaDaily.com Compiled By : Abijith I P
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