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| Subject: | RE: [gislist] Indian GIS usage |
| Date: |
12/23/2003 05:45:01 AM |
| From: |
Anthony Quartararo |
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These comments bring up some points that are relevant to the thread:
1) The Indian IT community is very much the same as Wal-Mart vs. Target vs.
?, that is, they realize that consumers will jump to another store to save
$.25 on a similar item. As long as there is a surplus of talent, that
talent is a commodity, and as with all commodities, it becomes increasingly
difficult to discriminate differences in value ( = quality+price+schedule
per unit), and so all things being equal, if Consultant A offers a 1.5X
discount and Consultant B offers 1.55X discount, the decision is almost
always a financial one.
2) The fact that Wipro, TCS, Infotech, RMSI, L&T, and other notable IT(GIS)
companies in India have gradually increased their prices demonstrates that
they are a) experiencing increasing internal costs, b) realizing the point
made below that they need not offer steep discounts for every client, c)
making an effort to step out of the traditional role of subcontractor to one
of prime contractor, d) their respective GIS units are being required to
contribute more % return to the corporate mothership*, e) all of the above
or f) none of the above if there is some mystery left undiscovered.
* Indian GIS companies frequently are one small component of larger
conglomerates, the "everything the everyone" model, and while they
contribute .000X% to the total corporate bottom line, they mindset is
something like, "we cannot afford not to participate in the GIS industry..."
3) India is not China. Similar sizes in population do not equate to similar
potentiality of markets. It is only very, very recently that the Indian
middle-class (economically speaking) has started to realize its leverage.
China's has had a ten year head start. This inertia is hard to overcome.
China's bureaucracy is huge, but, it is increasingly streamlining itself
with market forces. India's bureaucracy is also huge, but streamlining is
not a word that jumps to mind at the moment.
Oh, and as far as Japan goes, aside from DoCoMo [a largely Japanese phenom]
and that very cool Sony dancing robot, Japan is still meandering through the
last phases of a 10+ year recession? What have you done for me lately ?
4) Dell just moved it's corporate support back to the US from India, too
many complaints. They did it quietly, because their consumer support is
still generated from India. Dell is assuming the risk the consumers won't
mind waiting 40+ minutes for a support call to be answered, and then an
untold number of minutes trying to sort out the problem. My own experience
with the corporate support from India leaves me with little doubt why Dell
brought that back to the US. The point is, that while there is a lot of
buzz lately about a lot of work exiting the US for India (IBM sending 7500
jobs to India in 2004), this will pose a precarious situation for India
should a) the US economy catch the economic equivalent of SARS or b) the US
companies that are currently outsourcing to India show their fickleness and
move on to China, Indonesia, Philippines, Vietnam, Argentina, Bangladesh, or
whichever country can offer comparable labor resources at a lower cost.
This will happen, it is only a matter of time. The time allotted to these
type of turnovers is actually decreasing at an accelerating rate. The same
trend applies to the GIS industry.
Anthony
-----Original Message-----
From: gislist-bounces@lists.geocomm.com
[mailto:gislist-bounces@lists.geocomm.com] On Behalf Of
Research@NucleusGIS.com
Sent: Tuesday, December 23, 2003 2:20 AM
To: Mike: gislist@lists.thinkburst.com
Subject: Re: [gislist] Indian GIS usage
why five times less: there are a few things we can do for free for you, it
all depends on what you want to get done and who is doing it.
you can benchmark rates of Infosys or Wipro or TCS to understand if they
charge five times less. They charge no less than 15% of their America born &
America bred competitors.
----- Original Message -----
From: "Mike" <mjsnow@direcway.com>
>
They would still
> get the contracts and make much more money. I don't understand the mind
set.
>
> Finally, I recall that people use to say that the Japanese weren't
> very
good
> at "producizizizizing" anything but cheap seconds and unimportant
products.
> I don't think anyone can say that with a straight face any longer. I
> for one, would never underestimate India's potentials or the size of
> its markets.
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