IS “INDIA” COST CENTRE Or COMPETENCE CENTRE ?

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In the eve of Independence we happened to have a discussion in our office breakout area about this topic with regard to COST and COMPETENCE

Before starting this article of mine i would like to ask everyone .

Is Indian IT Boom because of ?
A) COST

B) COMPETENCE

Though I agree that most people would inevitable choose “A” .I would still insist on Competence .Yes i do agree we started with the cost centre attitude to set up a platform to build our competence and now if we see we have become soooo competent enough in our own field that we see lot of budding entrepreneurs in the field each works .

Ex :- 1) 10 in Every Batch of IIM pass out have been opting out of lucrative offers from IIM’s
2) 1 in 100 working in IT firm wants has his own entrepreneurial dream

We are seeing the paradigm shift in recent past when the value of rupee is growing higher compared to Dollar.Though i consider it more a matter of PRIDE, most individual’s are considering it as REDUCTION in margin of profit.
For that matter at some places there are even plans of making of working for more than 40 hrs a week.Don’t get me wrong that i do agree that Business understand only one word “PROFIT” .Is working extra the only way of making more profit? .Can’t we have our own Business empire like building Operating systems ,making compilers.Lets make the better products in world and try to be more profitable by just updating the serial numbers and making more money through the royalties rather than working for more than 40 Hrs.Tomorrow when another country comes up with same cheap labor, todays 40 shouldn’t get converted to 100 hrs .How long will this rat race exist. Lets stop this right here.
We need to make use of Knowledge and Technology in order to make India a super power instead of just the cheap labor .Lets leave these to somebody else who is more fighting for this share of bread.I don’t deny that India has not improved economy with these cheap labor .But lets not leave through out on this. We have used that as a stepping stone for something better .Lets all be more innovative and bring in more technological advances to bring in necessary change to change the world.

Change has just begun .Here is one of them which is worth mentioning. Google changing its way of working in India wherein they have Board of Angels (BOA) who will invest in new India generation .

Band of Angels Help Indian Start Ups

Read more here below

http://gigaom.com/2006/09/05/band-of-angels-help-indian-start-ups

“CHANGE IS ONLY CONSTANT THING ” .LETS CHANGE INDIA FOR GOOD.

HAPPY INDEPENDENCE DAY

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4 Responses to “IS “INDIA” COST CENTRE Or COMPETENCE CENTRE ?”

  1. Kishore Says:

    I beg to differ here.

    We have been a cost centre (I would infact say costly centre for the work we do) and would continue to do so. I am not disputing the competence of Indians, what is lacking is the proper environment (funding, lax IP protection, research) for risk taking ventures. Most Indians (including me) have an attitude of playing safe and would want a secure job. I would be most happy if we were to become competence centres.

    Most of the so called innovations or great startup ideas have come from people who have/had considerable work experience in west, notably US. The percentage of pure-desi ideas/entrepreneurs is abysmally small.

    >> 1 in 100 working in IT firm wants has his own entrepreneurial dream
    1 in 100 is too small a number. If you would take a similar survey in US/Canada/West Europe, you would get very higher number.

    >> We need to make use of Knowledge and Technology in order to make India a super power instead of just the cheap labor .
    Admirable thought, but we are far from close to it. Though there is no doubt that some pockets of India is reaping the benefits of technology revolution/knowledge economy, 250 million people in India are below poverty line, that is nearly 1 in every 4 Indian.

  2. Himanshu Sheth Says:

    Hey BG,
    One noticeable thing,my URL was wrong 🙂
    Coming back to the article,it is a nice thought but one thing we should not forget that work came to India because it was CHEAP but it is no longer the case.Hence,saying cheap labour would not be justifiable.Recent times,there has been a complete paradigm shift and this is because of “CHANGE” India.As you have told,IIM’ers rejecting lucrative offers to make their own mark is a very positive sign.This is all because of the brand India that has evolved over a period of time.Suddenly,we see all sorts of Entrepreneurs(home based,part time,full time…) and this is because there has been a change in the mentality of the Indians.

    You missed to stress upon the FDI scenario in India and this is also because of Brand India.To say about Cost or Competence,it is very difficult since,it is a mixture of both and this is all because of outsourcing.Another thing is about Entrepreneurship,before it was not justifiable to think about it since the ecosystem was not there but now times have changed.Entrepreneurship has created a wave in India.Suddenly people have started taking interest in Venture Funding,Angel Investing,Startups …

    But one place where India still lags behind is to Build a PRODUCT ecosystem which VC’s are still not ready to fund due to all the known reasons.And yes Google coming to India through Angel Investing is a nice business strategy which Google has used over a period of time.

    Since,you have mentioned about Independence,you should check out http://economictimes.indiatimes.com/Specials/Indias_60_and_how_free_are_we/The_8_visions_that_changed_the_face_of_India/rssarticleshow/msid-2282255,curpg-1.cms

    One final word,what I feel “EVERY INDIAN BLOGGER IS ALSO CONTRIBUTING TO THE ECOSYSTEM” and now you are one of them…This is all because of “INDIA CHANGING and NOW INDIA RISING”

    -Himanshu Sheth

  3. Deepak Says:

    Yeah, I do agree with Kishore about this.

    (1 in 100 in a software company wants his own entrepreneurial dream).
    That ratio is way beyond less than what you have mentioned and surely guys from western countries have higher ratio.

    As I am Ex-software Engineer & now a hardware Entrepreneur know how is the idea of Entrepreneurship & how it plays

    This is because of

    1) Lots family Values which does oppose Entrepreneurship,

    2) The 9 – 5.30 job mentality,

    3) The secured job,

    4) Business losses,

    5) The only earning member in Family.

    6) The ” I can’t do ”
    “I don’t have money”
    “fear of partner dumping you” mentality.

    etc.

    This can be over come by

    1) As we all know that parents want there children to have a secure life , they usually discourage the Entrepreneurship ideas. I do agree from their point of view, they are right. This can be over come by convincing them about the the positive / negative aspects of a business.

    2) There is no time limit for Entrepreneurs. Earn as u like or how much want.

    3) There is always a question abt the secured job. I do feel that there is no secured present.It all depends the person how much he wants to be secured. So if he is already thinking about the secured job, he can as well think the same in Entrepreneurship.

    4)Business losses : This is one more aspect
    You know all that the companies do well, they appoint more people,get more orders etc at the good time & when in Loss the workers are laid off with out any reason which inturn leads to loss of sallary.
    so why cant people take the same risk in Entrepreneurship?

    5) The only earning member in Family :

    This mentality has a sure beating these days as both men & women are working, so family can rely on a working member & the other can take up the Entrepreneurship till certain tiime limit where you find the earning for Entrepreneurship is good & family can rely on that earning.

    6) Think positive & be optimistic,prepare well, search a partner or be a single owner. Money is something very important.bank are always ready to fund you for your Entrepreneurship if the plans, Business module, the idea of convincing them, the right product etc is in place

    These are the points which help you Entrepreneurship ideas to grow. So the companies new / old should concentrate on competence than on cost.

    So I would like to say

    ” IGNITE YOUR MIND” – a Adbul Kalam line

    Happy Independence Day.

  4. GeekSrik Says:

    Nice article. Arguably companies are getting divided into two groups, one whose focus is only profits at the cost of employees (read service firms) and the other, those who equally focus on profits and employees thereby creating a unique culture within themselves.

    The rising rupee costs are showing a dangerous trend of making people overwork when there are already great signs of stressed out living and extremes caused due to this stress factor. India Inc should not use this cheap manner to look at rising profits. We need to definitely focus on working diligently during working hours and playing diligently during playing hours. Its this balance that will make the nation stable in work ethics in the long run.

    One thing I dont understand is the fact that always companies like Google have to be role models for other home grown stalwarts like wipro or infy to emulate. Its time people use their “Human Resources” function to churn out fresh ideas to reduce stress and encourage innovations. What India has achieved in the last 10 years, has to next be achieved in round two of the revolution in the next one year. Something like Moore’s Law, we can have India Shining Law or India Rising Law.

    Politicians are the starting point. Wake up, and be accountable.

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